AAR Corp (AIR)
Working capital 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 |
| Total current assets | US$ in thousands | 1,389,600 | 1,097,900 | 1,007,200 | 937,000 | 1,438,700 |
| Total current liabilities | US$ in thousands | 466,900 | 351,500 | 348,200 | 336,800 | 383,100 |
| Working capital turnover | 2.46 | 2.65 | 2.76 | 2.71 | 1.95 |
May 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,272,900K ÷ ($1,389,600K – $466,900K)
= 2.46
AAR Corp's working capital turnover has fluctuated over the past five years. The company's working capital turnover ratio was highest in 2022 at 2.76 and lowest in 2020 at 1.95. This ratio indicates that the company generated $2.46 of revenue for every dollar of working capital in 2024.
Overall, AAR Corp has been able to efficiently utilize its working capital to generate sales in recent years, although there has been some variability in the ratio. The decreasing trend from 2022 to 2024 may suggest a slight decrease in efficiency in using working capital to generate revenue. It would be important to further analyze the company's operations and financial performance to understand the reasons behind these fluctuations.
Peer comparison
May 31, 2024