AAR Corp (AIR)
Receivables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,272,900 | 1,977,600 | 1,815,900 | 1,627,100 | 2,062,700 |
| Receivables | US$ in thousands | 287,200 | 241,300 | 214,000 | 166,700 | 171,900 |
| Receivables turnover | 7.91 | 8.20 | 8.49 | 9.76 | 12.00 |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,272,900K ÷ $287,200K
= 7.91
The receivables turnover for AAR Corp has shown a declining trend over the past five years, decreasing from 12.00 in 2020 to 7.91 in 2024. This indicates that the company is taking longer to collect its accounts receivable, which could potentially lead to liquidity issues if the trend continues. While a lower receivables turnover may suggest potential difficulties in collecting sales revenue, it is important to further investigate the reasons behind this trend, such as changes in credit policies, customer payment behavior, or overall economic conditions impacting the industry. A thorough analysis of the receivables turnover ratio in conjunction with other financial metrics would provide a more comprehensive understanding of AAR Corp's liquidity and efficiency in managing its accounts receivable.
Peer comparison
May 31, 2024