AAR Corp (AIR)
Quick ratio
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 404,700 | 37,000 | 38,200 | 39,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 287,200 | 257,100 | 246,400 | 280,600 | 241,300 | 237,700 | 225,300 | 220,800 | 214,000 | 209,300 | 192,100 | 180,800 | 166,700 | 186,800 | 169,800 | 166,700 | 171,900 | 225,700 | 208,500 | 197,300 |
| Total current liabilities | US$ in thousands | 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 | 383,100 | 485,300 | 406,500 | 396,400 |
| Quick ratio | 0.80 | 0.76 | 0.82 | 0.89 | 0.88 | 0.88 | 0.85 | 0.74 | 0.77 | 0.73 | 0.73 | 0.71 | 0.65 | 0.74 | 0.69 | 0.70 | 1.51 | 0.54 | 0.61 | 0.60 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($85,800K
+ $—K
+ $287,200K)
÷ $466,900K
= 0.80
The quick ratio of AAR Corp has shown some fluctuations over the past two years, ranging from a low of 0.54 to a high of 1.51. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
As of May 31, 2024, the quick ratio is 0.80, indicating that the company has $0.80 in liquid assets available to cover each $1 of current liabilities. This implies a slight improvement compared to the previous quarter's quick ratio of 0.76.
Overall, the quick ratio has generally been within a range of 0.60 to 0.89 over the past two years, with some variation in between. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations without relying on inventory sales, while a quick ratio above 1 indicates a strong ability to cover current liabilities with liquid assets. It is important for investors and analysts to monitor the quick ratio over time to assess the company's liquidity position and financial health.
Peer comparison
May 31, 2024