AAR Corp (AIR)
Current ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,389,600 | 1,097,900 | 1,007,200 | 937,000 | 1,438,700 |
| Total current liabilities | US$ in thousands | 466,900 | 351,500 | 348,200 | 336,800 | 383,100 |
| Current ratio | 2.98 | 3.12 | 2.89 | 2.78 | 3.76 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,389,600K ÷ $466,900K
= 2.98
The current ratio of AAR Corp has fluctuated over the past five years. It was 2.98 as of May 31, 2024, slightly decreased from 3.12 in the previous year. This indicates that the company had $2.98 in current assets for every $1 in current liabilities, showcasing its ability to cover its short-term obligations.
Although the current ratio decreased slightly in 2024, it remained above 2, indicating a healthy liquidity position. A current ratio above 2 is generally considered favorable, as it suggests that the company can comfortably meet its short-term financial liabilities.
It is essential for stakeholders to monitor the trend of the current ratio over time to ensure that the company's liquidity position remains stable and sufficient to support its operations and growth.
Peer comparison
May 31, 2024