AAR Corp (AIR)
Payables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | — | 1,876,600 | 1,620,400 | 1,506,800 | 1,376,400 |
| Payables | US$ in thousands | 303,100 | 238,000 | 158,500 | 156,400 | 127,200 |
| Payables turnover | 0.00 | 7.88 | 10.22 | 9.63 | 10.82 |
May 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $—K ÷ $303,100K
= 0.00
The payables turnover ratio for AAR Corp has exhibited fluctuations over the reported period from May 31, 2021, to May 31, 2025. Specifically, the ratio was 10.82 times in 2021, indicating the company paid off its accounts payable approximately 10.82 times during the year. In 2022, the ratio decreased to 9.63, suggesting a slight lengthening in the time taken to settle payables, which may reflect either extended credit terms negotiated with suppliers or slower payment practices.
In 2023, the payables turnover increased marginally to 10.22, indicating a modest acceleration in settling obligations compared to 2022. However, in 2024, the ratio declined significantly to 7.88, representing a noticeable slowdown in the payments process, which could point to lengthened payment periods, potential liquidity constraints, or strategic delays in settling payables.
By May 31, 2025, the payables turnover ratio dropped to zero, implying a cessation of recorded payable activity or a data anomaly, as a zero ratio typically suggests no payables were outstanding or reported during that period. Such a sharp decline warrants further investigation to understand underlying causes, such as changes in reporting practices, accounting policies, or financial health.
Overall, the trend indicates variability in the company's accounts payable payment cycles, with periods of moderate and significant slowing down. The decline in 2024 and the zero reading in 2025 highlight potential liquidity considerations or shifts in vendor relationships that merit further analytical scrutiny to assess impact on operational cash flows and supplier management.
Peer comparison
May 31, 2025