AAR Corp (AIR)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,272,900 | 2,183,800 | 2,146,300 | 2,075,600 | 1,977,600 | 1,904,800 | 1,839,500 | 1,806,700 | 1,815,900 | 1,776,800 | 1,734,400 | 1,701,900 | 1,627,100 | 1,607,600 | 1,758,900 | 1,915,600 | 2,075,300 | 2,221,500 | 2,187,900 | 2,119,700 |
| Receivables | US$ in thousands | 287,200 | 257,100 | 246,400 | 280,600 | 241,300 | 237,700 | 225,300 | 220,800 | 214,000 | 209,300 | 192,100 | 180,800 | 166,700 | 186,800 | 169,800 | 166,700 | 171,900 | 225,700 | 208,500 | 197,300 |
| Receivables turnover | 7.91 | 8.49 | 8.71 | 7.40 | 8.20 | 8.01 | 8.16 | 8.18 | 8.49 | 8.49 | 9.03 | 9.41 | 9.76 | 8.61 | 10.36 | 11.49 | 12.07 | 9.84 | 10.49 | 10.74 |
May 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,272,900K ÷ $287,200K
= 7.91
The receivables turnover ratio for AAR Corp has been fluctuating over the past few years, ranging from a low of 7.40 to a high of 12.07. The general trend shows an improvement in receivables turnover from 2019 to 2024, indicating that the company is collecting its accounts receivable more efficiently. This trend suggests that AAR Corp has been effectively managing its credit sales and collection processes.
The highest receivables turnover ratio was 12.07 on August 31, 2020, indicating that AAR Corp collected its receivables more than 12 times during that fiscal year. This high turnover ratio suggests that AAR Corp was efficient in collecting payments from customers.
Overall, the upward trend in the receivables turnover ratio reflects positively on AAR Corp's ability to manage its accounts receivable effectively, collect payments promptly, and maintain healthy cash flows. It also indicates the company's strong credit control policies and its ability to convert credit sales into cash efficiently.
Peer comparison
May 31, 2024