AAR Corp (AIR)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 495,100 | 465,800 | 470,600 | 458,800 | 410,400 | 343,600 | 345,700 | 379,900 | 328,200 | 329,400 | 307,800 | 308,300 | 287,600 | 278,100 | 260,600 | 255,400 | 238,600 | 248,900 | 222,600 | 211,900 |
| 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 |
| Quick ratio | 1.07 | 1.01 | 0.95 | 1.09 | 1.06 | 0.96 | 1.08 | 1.14 | 1.13 | 1.15 | 1.10 | 0.99 | 0.98 | 0.93 | 0.95 | 0.94 | 0.86 | 0.90 | 0.81 | 0.81 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($96,500K
+ $—K
+ $495,100K)
÷ $554,700K
= 1.07
The quick ratio of AAR Corp, as depicted in the provided data, reflects a generally stable liquidity position over the analyzed period. From August 2020 through May 2021, the ratio remained relatively steady around 0.81 to 0.90, indicating that the company's most liquid assets (excluding inventory) were just sufficient to cover its current liabilities, albeit slightly less than one at the start.
Beginning in August 2021, the quick ratio exhibited a gradual upward trend, peaking at approximately 1.15 in February 2023. This increase suggests an improvement in liquidity, positioning the company to cover its short-term obligations more comfortably with its quick assets. The ratio consistently remained above 1.0 from November 2022 onward, which is generally viewed as a positive sign of liquidity strength.
In subsequent periods, the ratio experienced minor fluctuations, declining slightly to around 0.95 in November 2024 but rising again to approximately 1.01 in February 2025. Overall, the trend indicates a relatively stable liquidity profile with periods of improvement.
These movements imply that AAR Corp has maintained a prudent liquidity management stance, with its ability to meet short-term liabilities from its most liquid assets strengthening over time before experiencing slight contractions. The ratios remain generally within acceptable ranges, reflecting a sound liquidity position but also suggesting cautious inventory or receivables management at times.
Peer comparison
May 31, 2025