AAR Corp (AIR)

AAR Corp's solvency ratios show the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations. The debt-to-assets ratio has fluctuated over the periods, ranging from 0.06 to 0.36. This ratio indicates the proportion of AAR Corp's assets financed by debt, with higher ratios implying a greater reliance on borrowing.

The debt-to-capital ratio has also varied, with values from 0.09 to 3.15. This ratio measures the extent of AAR Corp's capital structure that is debt-funded, indicating the level of financial risk. A higher debt-to-capital ratio suggests higher leverage and potential financial risk.

Similarly, the debt-to-equity ratio fluctuated between 0.10 and 0.83. This ratio signifies the proportion of AAR Corp's financing that comes from debt relative to equity. A higher debt-to-equity ratio indicates higher financial leverage and potential risk.

The financial leverage ratio provides insight into AAR Corp's overall debt level in relation to its equity, with values ranging from 1.52 to 2.33. This ratio helps assess the company's financial risk and the impact of debt on its capital structure. A higher financial leverage ratio indicates higher debt levels compared to equity.

Overall, the variability in these solvency ratios over the periods suggests changes in AAR Corp's capital structure and financial risk profile. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's long-term financial stability and ability to meet its debt obligations.

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Coverage ratios

Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses with operating income.

Looking at AAR Corp's interest coverage ratio over the past few quarters, we can see that it has varied significantly. The interest coverage ratio has been relatively healthy and above 1.0, indicating that AAR Corp has generated enough operating income to cover its interest expenses.

In recent quarters, the interest coverage ratio has generally been trending upwards, with higher values signifying improved ability to cover interest expenses. This suggests that AAR Corp's financial position has been strengthening, and the company has been generating more operating income relative to its interest expenses.

However, it is important to note the significant decline in interest coverage ratio in the last few quarters, particularly the negative values. Negative interest coverage ratios indicate that the company's operating income is not sufficient to cover its interest expenses, posing a risk to the company's financial stability.

Overall, AAR Corp's interest coverage ratio has shown fluctuations over the quarters, indicating varying levels of financial performance and ability to meet interest obligations. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations.