AAR Corp (AIR)
Quick ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 109,200 | 85,800 | 68,400 | 53,500 | 51,800 |
| Short-term investments | US$ in thousands | — | -24,600 | — | — | — |
| Receivables | US$ in thousands | 495,100 | 410,400 | 328,200 | 287,600 | 238,600 |
| Total current liabilities | US$ in thousands | 554,700 | 466,900 | 351,500 | 348,200 | 336,800 |
| Quick ratio | 1.09 | 1.01 | 1.13 | 0.98 | 0.86 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($109,200K
+ $—K
+ $495,100K)
÷ $554,700K
= 1.09
The quick ratio for AAR Corp over the specified periods demonstrates a generally improving liquidity position, with notable fluctuations observed across the years. As of May 31, 2021, the quick ratio stood at 0.86, indicating that the company had less than one dollar of quick assets for every dollar of current liabilities, reflecting a relatively tight liquidity position at that time. Over the subsequent year, this ratio increased to 0.98 by May 31, 2022, approaching a more balanced level and suggesting improved capacity to meet short-term obligations with liquid assets.
By May 31, 2023, the quick ratio further increased to 1.13, surpassing the critical threshold of 1.0. This indicates that the company had more than enough liquid assets to cover its current liabilities, signaling a healthier liquidity position. However, a slight decrease was observed in the following year, with the ratio declining marginally to 1.01 on May 31, 2024. Despite this minor reduction, the ratio remained above 1.0, maintaining a comfortable liquidity buffer.
Continuing this trend, the quick ratio increased slightly again to 1.09 by May 31, 2025. This overall upward trajectory from 2021 to 2023 signifies an enhancement in the company's ability to quickly satisfy its short-term liabilities through liquid assets. The slight fluctuations thereafter suggest stability in liquidity levels, with the company maintaining a prudent position for short-term financial health.
In summary, the progression of the quick ratio over the analyzed period indicates that AAR Corp has generally improved its liquidity position, transitioning from a less liquid stance in 2021 to a more robust and stable liquidity buffer in subsequent years, thus better positioning it to meet immediate financial obligations.
Peer comparison
May 31, 2025