AAR Corp (AIR)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 109,200 | 85,800 | 68,400 | 53,500 | 51,800 |
| Short-term investments | US$ in thousands | — | -24,600 | — | — | — |
| Total current liabilities | US$ in thousands | 554,700 | 466,900 | 351,500 | 348,200 | 336,800 |
| Cash ratio | 0.20 | 0.13 | 0.19 | 0.15 | 0.15 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($109,200K
+ $—K)
÷ $554,700K
= 0.20
The cash ratio of AAR Corp over the specified period demonstrates a relatively stable yet variable liquidity position in terms of cash and cash equivalents relative to current liabilities. As of May 31, 2021, the cash ratio was 0.15, maintaining this level through May 31, 2022, indicating that the company’s cash and cash equivalents covered 15% of its current liabilities at these points in time.
In the subsequent period, the cash ratio increased marginally to 0.19 as of May 31, 2023, suggesting a slight improvement in the company's immediate liquidity position, with cash and cash equivalents approaching nearly one-fifth of current liabilities. However, this upward trend was short-lived, as evidenced by the decline to 0.13 as of May 31, 2024, indicating a decrease in cash holdings relative to current liabilities, which could suggest increased current liabilities or a reduction in cash reserves.
By May 31, 2025, the cash ratio experienced an increase to 0.20, surpassing previous levels and indicating a more conservative liquidity stance where cash and cash equivalents now covered approximately one-fifth of current liabilities. Overall, the fluctuation in AAR Corp's cash ratio illustrates a pattern of modest variability in immediate liquidity, with periods of both slight increase and decrease, but generally remaining within a range that suggests a cautious approach to liquidity management, with cash holdings below one-third of current liabilities throughout the period.
Peer comparison
May 31, 2025