AAR Corp (AIR)
Days of sales outstanding (DSO)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.62 | 5.76 | 5.46 | 5.30 | 5.65 | 6.45 | 6.28 | 5.51 | 6.06 | 5.81 | 5.99 | 5.87 | 6.33 | 6.41 | 6.68 | 6.68 | 6.92 | 6.55 | 7.97 | 9.11 | |
| DSO | days | 64.99 | 63.38 | 66.79 | 68.89 | 64.60 | 56.60 | 58.16 | 66.22 | 60.18 | 62.84 | 60.91 | 62.13 | 57.68 | 56.98 | 54.68 | 54.62 | 52.71 | 55.69 | 45.80 | 40.05 |
May 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.62
= 64.99
The analysis of AAR Corp's Days of Sales Outstanding (DSO) over the specified period reveals a pattern of gradual increase, indicative of evolving receivables collection dynamics. Beginning at approximately 40.05 days as of August 31, 2020, the DSO experienced a steady upward trend, reaching a peak of 68.89 days as of August 31, 2024. This upward trajectory suggests that the company has been extending longer credit terms or experiencing delays in receivables collection during this period.
Between August 2020 and August 2024, the DSO increased consistently, with notable increments occurring approximately every fiscal quarter. The rate of increase was more pronounced from late 2021 through mid-2024, signaling ongoing shifts in credit policies, customer payment behaviors, or potential challenges in collections.
Following the peak in August 2024, the DSO exhibits a modest decline to 66.79 days as of November 30, 2024, indicating some easing or improvement in collection periods. However, this is still higher than previous levels, suggesting persistent receivable management considerations remain. As of February 28, 2025, the DSO decreased further to 63.38 days but remained above the early 2020 levels.
Overall, the data indicates that AAR Corp's accounts receivables have become less liquid over time, with a notable increase in the average collection period. This trend could impact working capital management and liquidity profiles, warranting ongoing monitoring of credit policies and customer payment behaviors to assess future collection efficiency.
Peer comparison
May 31, 2025