AAR Corp (AIR)
Inventory turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,196,600 | 232,700 | 206,200 | 193,300 | 236,000 |
| Inventory | US$ in thousands | 733,100 | 574,100 | 550,500 | 540,600 | 623,100 |
| Inventory turnover | 3.00 | 0.41 | 0.37 | 0.36 | 0.38 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,196,600K ÷ $733,100K
= 3.00
The inventory turnover ratio for AAR Corp has shown a significant improvement over the past five years. In 2024, the inventory turnover ratio is at 3.00, indicating that the company's inventory is being sold and replenished more efficiently compared to previous years.
This improvement is notable when compared to the inventory turnover ratios of 0.41 in 2023, 0.37 in 2022, 0.36 in 2021, and 0.38 in 2020. The increase in inventory turnover represents a positive trend towards better management of inventory levels and a more effective sales strategy.
A higher inventory turnover ratio suggests that AAR Corp is selling its products more quickly, reducing the risk of obsolete inventory and improving cash flow. This may also indicate a stronger demand for the company's products or more efficient inventory management practices.
Overall, the upward trend in inventory turnover for AAR Corp indicates improvements in operational efficiency and potential positive impacts on financial performance.
Peer comparison
May 31, 2024