AAR Corp (AIR)
Working capital turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,780,500 | 2,318,900 | 1,990,500 | 1,820,000 | 1,652,300 |
| Total current assets | US$ in thousands | 1,510,600 | 1,389,600 | 1,097,900 | 1,007,200 | 937,000 |
| Total current liabilities | US$ in thousands | 554,700 | 466,900 | 351,500 | 348,200 | 336,800 |
| Working capital turnover | 2.91 | 2.51 | 2.67 | 2.76 | 2.75 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,780,500K ÷ ($1,510,600K – $554,700K)
= 2.91
The analysis of AAR Corp’s working capital turnover over the specified period reveals the following trends. As of May 31, 2021, the ratio stood at 2.75, indicating that the company generated approximately 2.75 dollars of revenue for every dollar of working capital employed. This ratio remained relatively stable in the subsequent year, slightly increasing to 2.76 by May 31, 2022, suggesting marginally improved efficiency in utilizing working capital to generate sales.
However, a decline is observed in the following year, with the ratio decreasing to 2.67 on May 31, 2023. This indicates a slight decrease in the efficiency of working capital utilization, potentially reflecting increased operational assets or a reduction in sales relative to working capital deployment.
Further deterioration is evident in the next fiscal year, where the ratio drops to 2.51 as of May 31, 2024. This trend suggests a diminished efficiency in converting working capital into revenue, which could be attributable to either increased working capital levels or decreased sales performance.
Notably, in the most recent period, May 31, 2025, the working capital turnover rebounds to 2.91. This upward movement signifies an improvement, with the company now generating approximately 2.91 dollars of revenue per dollar of working capital, surpassing previous levels. This increase may reflect enhanced operational efficiency, better management of current assets and liabilities, or a strategic adjustment to optimize working capital utilization.
In summary, AAR Corp’s working capital turnover experienced fluctuations over the analyzed period, characterized by stability in the early years, a decline through 2023 and 2024, followed by a notable recovery in 2025. This pattern underscores variability in operational efficiency concerning working capital deployment, with recent performance indicating a positive trend toward more effective utilization.
Peer comparison
May 31, 2025