AAR Corp (AIR)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 985,400 | 274,700 | 275,000 | 304,800 | 269,700 | 185,600 | 197,200 | 114,100 | 98,900 | 103,300 | 103,200 | 127,600 | 133,700 | 206,000 | 220,300 | 255,100 | 600,000 | 206,000 | 196,100 | 202,200 |
| Total assets | US$ in thousands | 2,770,000 | 2,021,800 | 1,965,600 | 1,954,400 | 1,833,100 | 1,673,300 | 1,646,900 | 1,598,900 | 1,573,900 | 1,552,000 | 1,529,600 | 1,535,700 | 1,539,700 | 1,642,800 | 1,669,300 | 1,713,800 | 2,079,000 | 1,828,900 | 1,754,900 | 1,683,100 |
| Debt-to-assets ratio | 0.36 | 0.14 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | 0.07 | 0.06 | 0.07 | 0.07 | 0.08 | 0.09 | 0.13 | 0.13 | 0.15 | 0.29 | 0.11 | 0.11 | 0.12 |
May 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $985,400K ÷ $2,770,000K
= 0.36
The debt-to-assets ratio of AAR Corp has shown fluctuations over the past several quarters. The ratio was 0.36 as of May 31, 2024, indicating that 36% of the company's assets were financed by debt. This represents a significant increase from the ratio of 0.14 in the prior quarter (Feb 29, 2024). The ratio has generally trended upwards in recent quarters, reaching a peak of 0.29 on Aug 31, 2020, before gradually decreasing.
A higher debt-to-assets ratio typically suggests higher financial risk as it indicates a larger portion of the company's assets are funded by debt, which can lead to higher interest payments and potential financial instability. On the other hand, a lower ratio indicates a lower reliance on debt financing and potentially lower financial risk.
It is important for stakeholders to closely monitor the debt-to-assets ratio of AAR Corp to assess the company's financial health and risk profile, especially in relation to its industry peers and broader economic conditions.
Peer comparison
May 31, 2024