AAR Corp (AIR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 2.33 | 1.73 | 1.70 | 1.74 | 1.67 | — | 1.59 | 1.54 | 1.52 | 1.53 | 1.52 | 1.55 | 1.58 | 1.76 | 1.85 | 1.92 | 2.30 | 1.97 | 1.90 | 1.85 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,770,000K ÷ $1,189,800K
= 2.33
The financial leverage ratio of AAR Corp has exhibited some fluctuations over the past few quarters. The ratio increased steadily from November 2020 to May 2021, reaching a peak of 1.76 before slightly declining in the following quarter. Thereafter, the ratio continued to decrease until August 2022, where it hit its lowest point of 1.52. Subsequently, there was a gradual increase in the financial leverage ratio, reaching 2.33 by May 2024.
Overall, the financial leverage ratio indicates that AAR Corp has been utilizing more debt to finance its operations and growth. The increasing trend in the ratio implies a higher level of debt relative to equity in the company's capital structure. It is essential for stakeholders to closely monitor this ratio to assess the company's financial risk and ability to meet its debt obligations in the long run.
Peer comparison
May 31, 2024