AAR Corp (AIR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,510,600 | 1,534,800 | 1,498,000 | 1,426,900 | 1,389,600 | 1,240,700 | 1,194,400 | 1,207,200 | 1,097,900 | 1,067,800 | 1,060,300 | 1,035,200 | 1,007,200 | 977,200 | 946,700 | 944,900 | 937,000 | 1,028,400 | 1,041,700 | 1,074,200 |
| 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 |
| Current ratio | 2.72 | 2.82 | 2.68 | 3.06 | 2.98 | 2.90 | 3.14 | 3.07 | 3.12 | 3.22 | 3.28 | 2.89 | 2.89 | 2.85 | 2.96 | 2.91 | 2.78 | 2.65 | 2.55 | 2.72 |
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 August 2020 through May 2025 reveals a generally stable liquidity position with some fluctuations. The current ratio started at 2.72 in August 2020 and exhibited a gradual upward trend, reaching a peak of approximately 3.28 in November 2022. This indicates an improving ability to cover short-term liabilities with current assets during this period.
Between August 2020 and November 2022, the current ratio demonstrated slight increases, reflecting enhanced liquidity. Notably, from May 2021 to May 2022, the ratio stabilized around 2.78 to 2.89, maintaining a comfortable buffer above 2.5, which is commonly considered indicative of sound short-term financial health.
Post-November 2022, the ratio peaked again at 3.14 before experiencing a modest decline to 2.68 in November 2024. Despite this dip, the ratio remained above 2.5, suggesting that the company's liquidity, while somewhat diminished, continues to be within a healthy range. The most recent data points, with ratios around 2.72 in May 2025 and 2.82 in February 2025, confirm the company's maintained ability to meet its short-term obligations.
Overall, AAR Corp has maintained a robust current ratio throughout the examined period, indicating a stable liquidity position with no signs of liquidity distress. The fluctuations observed are moderate and consistent with typical seasonal or operational variances, implying disciplined management of current assets and liabilities.
Peer comparison
May 31, 2025