AAR Corp (AIR)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,780,500 | 2,682,500 | 2,571,600 | 2,430,900 | 2,318,900 | 2,215,700 | 2,169,500 | 2,093,900 | 1,990,500 | 1,913,300 | 1,844,400 | 1,811,200 | 1,820,000 | 1,781,500 | 1,739,600 | 1,706,600 | 1,652,300 | 1,631,200 | 1,774,000 | 1,931,300 |
| Receivables | US$ in thousands | 495,100 | 465,800 | 470,600 | 458,800 | 410,400 | 343,600 | 345,700 | 379,900 | 328,200 | 329,400 | 307,800 | 308,300 | 287,600 | 278,100 | 260,600 | 255,400 | 238,600 | 248,900 | 222,600 | 211,900 |
| Receivables turnover | 5.62 | 5.76 | 5.46 | 5.30 | 5.65 | 6.45 | 6.28 | 5.51 | 6.06 | 5.81 | 5.99 | 5.87 | 6.33 | 6.41 | 6.68 | 6.68 | 6.92 | 6.55 | 7.97 | 9.11 |
May 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,780,500K ÷ $495,100K
= 5.62
The receivables turnover ratio of AAR Corp exhibits notable fluctuations over the analyzed period from August 2020 to May 2025. Initially, the ratio was relatively high at 9.11 in August 2020, indicating a prompt collection of receivables and efficient credit management. Subsequently, the ratio experienced a decline, reaching a low of 5.87 in August 2022, which suggests a lengthening in the collection period or potential changes in credit policies, customer payment behavior, or industry conditions.
Between August 2022 and May 2023, there was some stabilization and slight recovery, with the ratio fluctuating modestly around the 5.5 to 6.0 range, peaking at 6.06 in May 2023. This pattern could imply a period of operational adjustment or market stabilization. Notably, the ratio increased again modestly to 6.28 in November 2023 and further to 6.45 in February 2024, signaling incremental improvements in receivables collection efficiency.
However, a decline is evident thereafter, with the ratio decreasing to 5.30 in August 2024 before modestly rising again to approximately 5.76 by February 2025. Overall, the trend indicates a decrease in receivables turnover from its peak in 2020, reflecting either longer collection periods or a change in credit terms, balanced by some periods of recovery.
The consistent oscillation in the ratio suggests that AAR Corp's receivables management has experienced periods of strain and recovery, potentially influenced by seasonal factors, market conditions, or strategic credit policy adjustments. The overall downward trend from 2020 through 2025 indicates a trend toward longer receivables collection periods, which could impact cash flow and working capital management if sustained over time.
Peer comparison
May 31, 2025