AAR Corp (AIR)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,194,400 | 1,645,000 | 1,167,700 | 712,800 | 232,700 | 217,600 | 209,800 | 204,100 | 205,600 | 200,300 | 196,300 | 192,600 | 192,100 | 141,300 | 154,500 | 168,200 | 187,000 | 720,300 | 1,235,300 | 1,642,300 |
| Inventory | US$ in thousands | 733,100 | 671,500 | 645,900 | 614,200 | 574,100 | 574,100 | 595,000 | 575,800 | 550,500 | 535,200 | 531,700 | 525,800 | 540,600 | 564,200 | 585,000 | 597,700 | 623,100 | 621,600 | 580,400 | 553,600 |
| Inventory turnover | 2.99 | 2.45 | 1.81 | 1.16 | 0.41 | 0.38 | 0.35 | 0.35 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.25 | 0.26 | 0.28 | 0.30 | 1.16 | 2.13 | 2.97 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,194,400K ÷ $733,100K
= 2.99
The inventory turnover of AAR Corp has shown fluctuating trends over the past few quarters. The inventory turnover ratio, which measures how efficiently the company manages its inventory, increased from 1.16 in August 2023 to a peak of 2.99 in May 2024. This indicates that AAR Corp was able to sell and replace its inventory nearly three times during the period ending in May 2024.
However, prior to this peak, the inventory turnover ratio had been relatively low, ranging from 0.25 to 0.41 for seven consecutive quarters. This suggests that AAR Corp struggled to efficiently turn over its inventory during this period.
Overall, the recent improvement in the inventory turnover ratio is a positive sign, indicating that the company may have implemented better inventory management practices. It will be important to monitor future trends to ensure consistent efficiency in managing inventory levels.
Peer comparison
May 31, 2024
May 31, 2024