AAR Corp (AIR)
Working capital 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 |
| Total current assets | US$ in thousands | 1,389,600 | 1,240,700 | 1,194,400 | 1,207,200 | 1,097,900 | 1,067,800 | 1,060,300 | 1,035,200 | 1,007,200 | 977,200 | 946,700 | 944,900 | 937,000 | 1,028,400 | 1,041,700 | 1,074,200 | 1,438,700 | 1,158,100 | 1,072,200 | 1,021,600 |
| Total current liabilities | US$ in thousands | 466,900 | 428,200 | 380,100 | 393,500 | 351,500 | 331,600 | 323,700 | 357,900 | 348,200 | 343,100 | 320,200 | 324,200 | 336,800 | 387,700 | 408,200 | 394,300 | 383,100 | 485,300 | 406,500 | 396,400 |
| Working capital turnover | 2.46 | 2.69 | 2.64 | 2.55 | 2.65 | 2.59 | 2.50 | 2.67 | 2.76 | 2.80 | 2.77 | 2.74 | 2.71 | 2.51 | 2.78 | 2.82 | 1.97 | 3.30 | 3.29 | 3.39 |
May 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,272,900K ÷ ($1,389,600K – $466,900K)
= 2.46
The working capital turnover ratio for AAR Corp has fluctuated over the past several periods, ranging from a low of 1.97 to a high of 3.39. This ratio measures the efficiency of the company in utilizing its working capital to generate sales revenue. A higher ratio indicates more efficient utilization of working capital.
In general, AAR Corp's working capital turnover has shown a mostly steady performance, hovering around the 2.5 to 2.8 range. The company's highest ratios, such as 3.30 and 3.29, suggest efficient management of working capital resources to drive sales. However, there are occasional dips in the ratio, as seen in some periods like May 31, 2020 (1.97), which may indicate temporary inefficiencies in working capital utilization.
Overall, AAR Corp's working capital turnover ratios reflect reasonably effective management of working capital in generating sales revenue, with some variability observed over the periods analyzed.
Peer comparison
May 31, 2024