AAR Corp (AIR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 96,500 | 84,400 | 61,700 | 49,300 | 85,800 | 69,200 | 65,100 | 70,300 | 68,400 | 52,700 | 49,000 | 44,300 | 53,500 | 40,600 | 42,700 | 48,800 | 51,800 | 99,200 | 110,000 | 107,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.17 | 0.15 | 0.11 | 0.11 | 0.18 | 0.16 | 0.17 | 0.18 | 0.19 | 0.16 | 0.15 | 0.12 | 0.15 | 0.12 | 0.13 | 0.15 | 0.15 | 0.26 | 0.27 | 0.27 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($96,500K
+ $—K)
÷ $554,700K
= 0.17
The cash ratio of AAR Corp over the period from August 2020 to May 2025 has demonstrated relative stability with some fluctuations. The ratio consistently remained below 0.30, reflecting the company's cash holdings relative to its current liabilities.
Initially, the cash ratio was approximately 0.27 in August 2020 and November 2020, indicating that AAR held cash equivalent to about 27% of its current liabilities. This stability persisted through early 2021, with minimal variation, showing ratios of 0.26 in February 2021 and 0.15 in May and August 2021, which suggests a decrease in the liquidity buffer.
From late 2021 onward, the cash ratio continued to decline gradually, reaching as low as 0.12 in February 2022 and maintaining low levels through much of 2022 and 2023. The lowest observed was 0.11 in August and November 2024. Slight upticks occurred during 2023 and 2025, with ratios nearing 0.17 in May 2023 and 0.15 in February 2025, respectively.
Overall, the trend indicates that AAR Corp sustains a relatively conservative cash position, with ratios consistently below 20%, and shows periods of modest improvement and decline. The figures suggest a cautious approach to liquidity management, emphasizing other liquidity sources or receivables to support short-term obligations while maintaining a steady but lowcash cushion.
Peer comparison
May 31, 2025