AAR Corp (AIR)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,252,800 | 2,177,700 | 2,088,200 | 1,972,700 | 1,876,600 | 1,792,600 | 1,762,400 | 1,704,400 | 1,620,400 | 1,561,500 | 1,506,500 | 1,480,700 | 1,506,800 | 1,486,300 | 1,438,800 | 1,414,700 | 1,376,400 | 1,390,700 | 1,554,200 | 1,695,100 |
| Inventory | US$ in thousands | 809,200 | 775,700 | 790,000 | 748,200 | 733,100 | 671,500 | 645,900 | 614,200 | 574,100 | 570,700 | 595,000 | 575,800 | 550,500 | 535,200 | 531,700 | 525,800 | 540,600 | 564,200 | 585,000 | 597,700 |
| Inventory turnover | 2.78 | 2.81 | 2.64 | 2.64 | 2.56 | 2.67 | 2.73 | 2.77 | 2.82 | 2.74 | 2.53 | 2.57 | 2.74 | 2.78 | 2.71 | 2.69 | 2.55 | 2.46 | 2.66 | 2.84 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,252,800K ÷ $809,200K
= 2.78
The inventory turnover ratio of AAR Corp demonstrates fluctuations over the analyzed period spanning from August 2020 to May 2025. Initially, the ratio stood at 2.84 in August 2020, indicating that, on average, inventory was replenished approximately 2.84 times during that period. Over the subsequent months, a slight decline is observed, reaching a low of 2.46 by February 2021, which may suggest a temporary slowdown in inventory sales or increased inventory holdings.
From mid-2021 onward, there has been a gradual recovery, with ratios generally maintaining an upward trajectory, peaking at 2.82 in May 2023. This increase reflects a more efficient inventory management, with inventory turning over more frequently. The ratio then stabilizes around the low to mid-2.70s through late 2023 and into early 2024. During the latter part of 2024 and into 2025, the ratio remains relatively stable, with values consistently ranging between approximately 2.56 and 2.81.
Overall, the inventory turnover ratio exhibits moderate variability, indicating periods of both improvement and slowdown in inventory management efficiency. The ratios suggest that the company has maintained a generally consistent level of inventory turnover, with moments of increased efficiency in the most recent periods, aligning with ratios approaching or exceeding the earlier peaks. This pattern may reflect strategic adjustments or fluctuations in sales volume, inventory practices, or supply chain dynamics.
Peer comparison
May 31, 2025
May 31, 2025