AAR Corp (AIR)
Days of sales outstanding (DSO)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.91 | 8.49 | 8.71 | 7.40 | 8.20 | 8.01 | 8.16 | 8.18 | 8.49 | 8.49 | 9.03 | 9.41 | 9.76 | 8.61 | 10.36 | 11.49 | 12.07 | 9.84 | 10.49 | 10.74 | |
| DSO | days | 46.12 | 42.97 | 41.90 | 49.34 | 44.54 | 45.55 | 44.70 | 44.61 | 43.01 | 43.00 | 40.43 | 38.78 | 37.40 | 42.41 | 35.24 | 31.76 | 30.23 | 37.08 | 34.78 | 33.97 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.91
= 46.12
To analyze AAR Corp's Days Sales Outstanding (DSO) based on the provided data, we observe that the DSO has fluctuated over the past few quarters.
The DSO represents the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates a faster collection of accounts receivable, which is generally seen as a positive indicator of the company's liquidity and efficiency.
Looking at the trend in AAR Corp's DSO over the past few quarters, we see that it ranged from a low of 30.23 days to a high of 49.34 days. The DSO has shown some variability but generally seems to be within a relatively stable range.
The downward trend in DSO from 46.12 days in May 2024 to 33.97 days in Aug 2019 indicates an improvement in the company's ability to collect outstanding revenue more efficiently over time. This may suggest effective credit management, improved collection processes, or a more favorable customer base.
It is important for AAR Corp to monitor its DSO consistently to ensure that the trend continues to show efficient accounts receivable management. A low and decreasing DSO is generally a positive sign for the company's financial health and operational efficiency.
Peer comparison
May 31, 2024