AAR Corp (AIR)
Payables 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 |
| Payables | US$ in thousands | 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 | 191,600 | 295,100 | 231,400 | 212,800 |
| Payables turnover | 9.22 | 7.14 | 5.57 | 3.21 | 1.47 | 1.37 | 1.34 | 1.05 | 1.31 | 1.42 | 1.58 | 1.34 | 1.51 | 0.77 | 0.78 | 0.94 | 0.98 | 2.44 | 5.34 | 7.72 |
May 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,194,400K ÷ $238,000K
= 9.22
The payables turnover ratio for AAR Corp has fluctuated over the past few years, indicating changes in how efficiently the company is managing its accounts payable.
In the most recent period ending May 31, 2024, the payables turnover ratio was 9.22 times, showing that the company paid off its accounts payable approximately 9.22 times during the year. This suggests that AAR Corp is able to efficiently manage its payables and is turning over its payables at a relatively high rate.
Looking back at previous periods, there has been a general upward trend in the payables turnover ratio, indicating improved efficiency in managing payables. However, there are fluctuations in the ratio over time, such as the significant decrease from 5.34 in August 2019 to 0.77 in May 2021, possibly indicating changes in the company's payment practices or vendor relationships during those periods.
Overall, the increasing trend in the payables turnover ratio suggests that AAR Corp has been able to improve its efficiency in managing its payables over the years, which can have positive implications for its working capital management and overall financial health.
Peer comparison
May 31, 2024