AAR Corp (AIR)
Working capital 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 |
| Total current assets | US$ in thousands | 1,510,600 | 1,534,800 | 1,498,000 | 1,426,900 | 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 |
| Total current liabilities | US$ in thousands | 554,700 | 545,200 | 558,300 | 466,900 | 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 |
| Working capital turnover | 2.91 | 2.71 | 2.74 | 2.53 | 2.51 | 2.73 | 2.66 | 2.57 | 2.67 | 2.60 | 2.50 | 2.67 | 2.76 | 2.81 | 2.78 | 2.75 | 2.75 | 2.55 | 2.80 | 2.84 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,780,500K ÷ ($1,510,600K – $554,700K)
= 2.91
The working capital turnover ratio of AAR Corp has exhibited fluctuations over the period from August 2020 through May 2025. Initially, the ratio was 2.84 as of August 31, 2020, and showed a slight decline to 2.80 by November 30, 2020. Throughout the first half of 2021, the ratio decreased further, reaching approximately 2.55 on February 28, 2021, indicating a reduction in the efficiency with which the company utilized its working capital to generate sales.
Subsequently, the ratio increased again, reaching 2.75 as of May and August 2021, maintaining stability around this level into late 2021 and early 2022. A modest upward trend is visible, with the ratio climbing to 2.81 by February 28, 2022, suggesting a slight improvement in working capital efficiency. Into 2022, the ratio experienced minor fluctuations, ending the period at approximately 2.50 on November 30, 2022.
From late 2022 through mid-2023, the ratio showed some recovery, rising to approximately 2.67 by May 2023, indicating an improved utilization of working capital, though not returning to earlier peak levels. In the subsequent months of 2023 and early 2024, the ratio moved within a narrow range, largely persisting around 2.50 to 2.66, implying relative stability but without significant enhancement.
Looking into the period from late 2024 into mid-2025, the ratio again increased, reaching 2.91 by May 2025, which represents a notable rise compared to previous levels. This suggests a renewed efficiency in converting working capital into sales. Throughout this period, minor short-term fluctuations persisted, but the overall trend from August 2020 to May 2025 indicates a pattern of cyclical fluctuation with a gradual overall increase in the working capital turnover ratio.
In summary, the working capital turnover ratio has demonstrated periods of decline and recovery, with a general trend towards incremental improvement in the latter part of the analyzed timeframe, culminating in the highest recorded ratio of 2.91 in May 2025. This pattern may reflect changes in operational efficiency, working capital management strategies, or shifts in sales volume relative to working capital levels over time.
Peer comparison
May 31, 2025