AAR Corp (AIR)
Debt-to-equity ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 985,400 | 269,700 | 98,900 | 133,700 | 600,000 |
| Total stockholders’ equity | US$ in thousands | 1,189,800 | 1,099,100 | 1,034,500 | 974,400 | 902,600 |
| Debt-to-equity ratio | 0.83 | 0.25 | 0.10 | 0.14 | 0.66 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $985,400K ÷ $1,189,800K
= 0.83
The debt-to-equity ratio of AAR Corp has shown fluctuations over the past five years. In the most recent fiscal year, as of May 31, 2024, the ratio stands at 0.83. This indicates that the company's level of debt in relation to its equity has increased compared to the previous year.
In the prior year, as of May 31, 2023, the company had a relatively low debt-to-equity ratio of 0.25, suggesting a conservative debt structure. This was a significant decrease from the year before, as of May 31, 2022, when the ratio was 0.10, indicating a very low level of debt relative to equity.
The trend over the past five years shows some variability in AAR Corp's debt-to-equity ratio, with a notable spike in debt relative to equity in the fiscal year ended May 31, 2020, where the ratio was 0.66. It is important to note that a higher debt-to-equity ratio may indicate higher financial risk, as the company relies more on debt financing.
Overall, the analysis suggests that AAR Corp has experienced fluctuations in its debt-to-equity ratio in recent years, which may be a reflection of changing capital structure decisions and financial strategies. Further evaluation of the company's debt management policies and financial performance would be necessary to fully assess the implications of these changes.
Peer comparison
May 31, 2024