AAR Corp (AIR)
Current ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,510,600 | 1,389,600 | 1,097,900 | 1,007,200 | 937,000 |
| Total current liabilities | US$ in thousands | 554,700 | 466,900 | 351,500 | 348,200 | 336,800 |
| Current ratio | 2.72 | 2.98 | 3.12 | 2.89 | 2.78 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,510,600K ÷ $554,700K
= 2.72
The analysis of AAR Corp’s current ratio over the period from May 31, 2021, to May 31, 2025, indicates a generally strong liquidity position. The current ratio was 2.78 as of May 31, 2021, reflecting more than twice the current assets relative to current liabilities, which suggests a comfortable ability to meet short-term obligations at that time.
Over the subsequent years, the ratio showed a gradual upward trend, reaching a peak of 3.12 on May 31, 2023. This increase indicates an improvement in liquidity, with current assets increasingly outpacing current liabilities during that period. Such a trend could imply effective management of current assets or a strategic accumulation of working capital.
However, after May 31, 2023, the current ratio experienced a slight decline, falling to 2.98 in 2024 and further decreasing to 2.72 in 2025. This downward trend suggests a slight erosion in liquidity, potentially attributable to an increase in current liabilities, a reduction in current assets, or a combination of both. Nonetheless, the ratio remains comfortably above the generally acceptable threshold of 1.5 to 2.0 for most industries, signaling that AAR Corp maintains a relatively stable liquidity position despite the decline.
In summary, AAR Corp’s current ratio exhibits a robust liquidity profile across the analyzed years, with a peak in 2023 followed by a modest decrease, but remaining well above critical levels. The consistent ratio above 2.0 indicates prudent liquidity management, supporting the company’s capacity to meet short-term financial obligations effectively.
Peer comparison
May 31, 2025