AAR Corp (AIR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,189,800 | 1,168,000 | 1,155,500 | 1,121,900 | 1,099,100 | -126,700 | 1,035,300 | 1,036,500 | 1,034,500 | 1,017,700 | 1,007,000 | 988,200 | 974,400 | 932,400 | 900,700 | 890,600 | 902,600 | 929,400 | 921,700 | 909,500 |
| Debt-to-capital ratio | 0.45 | 0.19 | 0.19 | 0.21 | 0.20 | 3.15 | 0.16 | 0.10 | 0.09 | 0.09 | 0.09 | 0.11 | 0.12 | 0.18 | 0.20 | 0.22 | 0.40 | 0.18 | 0.18 | 0.18 |
May 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $985,400K ÷ ($985,400K + $1,189,800K)
= 0.45
The debt-to-capital ratio of AAR Corp has exhibited fluctuating trends over the past few quarters. In the most recent period as of May 31, 2024, the ratio stands at 0.45, indicating that the company's debt accounts for 45% of its total capital. This suggests a relatively higher reliance on debt financing compared to equity.
Looking further back, there was a significant spike in the debt-to-capital ratio in the February 28, 2023 period, where it reached 3.15. This spike may have been caused by a substantial increase in debt relative to capital during that particular period. However, the company managed to bring down the ratio in subsequent quarters.
Overall, the trend in the debt-to-capital ratio of AAR Corp shows some variability, but it is important to monitor the ratio over time to assess the company's leverage and financial risk management strategies.
Peer comparison
May 31, 2024