AAR Corp (AIR)
Cash ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 85,800 | 68,400 | 53,500 | 51,800 | 404,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 466,900 | 351,500 | 348,200 | 336,800 | 383,100 |
| Cash ratio | 0.18 | 0.19 | 0.15 | 0.15 | 1.06 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($85,800K
+ $—K)
÷ $466,900K
= 0.18
The cash ratio for AAR Corp over the past five years has ranged from 0.15 to 1.06. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has more liquid assets available to meet its short-term obligations.
In the case of AAR Corp, the cash ratio has shown some fluctuation over the years, with the lowest ratio recorded in 2022 at 0.15 and the highest in 2020 at 1.06. The ratio has been relatively stable in the range of 0.15 to 0.19 in the last three years.
A cash ratio of 0.18 in 2024 suggests that for every dollar of current liabilities, AAR Corp has $0.18 of cash and cash equivalents available. This indicates that the company may have a sufficient level of liquidity to meet its short-term obligations, although it is essential to compare this ratio with industry benchmarks and historical trends to assess the company's liquidity position effectively.
Peer comparison
May 31, 2024