AAR Corp (AIR)
Fixed asset turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,272,900 | 1,977,600 | 1,815,900 | 1,627,100 | 2,062,700 |
| Property, plant and equipment | US$ in thousands | 171,700 | 126,100 | 109,600 | 120,000 | 135,700 |
| Fixed asset turnover | 13.24 | 15.68 | 16.57 | 13.56 | 15.20 |
May 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,272,900K ÷ $171,700K
= 13.24
The fixed asset turnover ratio for AAR Corp has shown some fluctuations over the past five years, with values ranging from 13.24 to 16.57. The ratio measures the efficiency of the company in generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.
In this case, the company's fixed asset turnover has generally been quite high, indicating strong efficiency in utilizing its fixed assets to generate revenue. The ratio peaked at 16.57 in the fiscal year ending May 31, 2022, suggesting that the company was particularly efficient in that period. However, there was a slight decline in the ratio in the subsequent years, with values of 13.24 and 13.56 recorded in the most recent years.
Overall, AAR Corp's performance in terms of fixed asset turnover has been relatively strong, but the recent downward trend in the ratio may warrant further investigation to understand the factors driving this decline and assess the company's ongoing efficiency in utilizing its fixed assets effectively.
Peer comparison
May 31, 2024