AAR Corp (AIR)
Payables 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 |
| Payables | US$ in thousands | 303,100 | 278,900 | 291,800 | 257,500 | 238,000 | 230,300 | 209,700 | 222,200 | 158,500 | 158,700 | 156,500 | 194,500 | 156,400 | 140,800 | 124,300 | 144,200 | 127,200 | 182,600 | 198,300 | 179,800 |
| Payables turnover | 7.43 | 7.81 | 7.16 | 7.66 | 7.88 | 7.78 | 8.40 | 7.67 | 10.22 | 9.84 | 9.63 | 7.61 | 9.63 | 10.56 | 11.58 | 9.81 | 10.82 | 7.62 | 7.84 | 9.43 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,252,800K ÷ $303,100K
= 7.43
The payables turnover ratio for AAR Corp demonstrates notable fluctuations over the observed period from August 2020 through May 2025. Initially, the ratio was approximately 9.43 in August 2020, indicating a relatively high frequency of payables being settled within the period. This ratio decreased to around 7.84 by November 2020 and remained relatively stable through February 2021 at approximately 7.62, suggesting a slowdown in the payment cycle.
Subsequently, the ratio experienced an upward trend, reaching a peak of 11.58 in November 2021, which reflects an increased velocity in paying suppliers, potentially implying improved liquidity or more favorable credit terms. The ratio fluctuated thereafter between roughly 7.61 and 10.82, with notable peaks around May 2021 and November 2021, indicating periods of intensified payment activity.
From mid-2022 onwards, the ratio generally trended lower, oscillating around the 7.6 to 10.2 range, with a slight decline observed in late 2023 and early 2024, reaching below 8 at times. The most recent data points in late 2024 and early 2025 show the ratio stabilizing around 7.16 to 7.88, which is indicative of a longer payables cycle compared to earlier years.
Overall, the variation in AAR Corp’s payables turnover ratio suggests shifts in payment practices, possibly influenced by changes in supplier terms, liquidity positions, or operational strategies. Periods of higher ratios imply faster payments to suppliers, whereas lower ratios indicate extended payment cycles. The pattern underscores a dynamic approach toward managing accounts payable, with short-term fluctuations potentially reflecting broader changes in financial priorities or market conditions.
Peer comparison
May 31, 2025