AAR (AIR) Accounts Receivable

: $220 Mil (As of Feb. 2024)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. AAR's accounts receivables for the quarter that ended in Feb. 2024 was $220 Mil.

Accounts receivable can be measured by Days Sales Outstanding. AAR's Days Sales Outstanding for the quarter that ended in Feb. 2024 was 35.39.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. AAR's Net-Net Working Capital per share for the quarter that ended in Feb. 2024 was $-8.01.

AAR Accounts Receivable Historical Data

The historical data trend for AAR's Accounts Receivable can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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AAR Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Accounts Receivable

121.20

115.60

129.00

168.40

192.80

AAR Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Accounts Receivable																196.40	192.80	223.40	201.60	220.00

AAR Accounts Receivable Calculation

Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.

AAR Accounts Receivable Explanation

1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.

AAR's Days Sales Outstanding for the quarter that ended in Feb. 2024 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	220	/	567.3	*	91
=	35.39

2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), AAR's accounts receivable are only considered to be worth 75% of book value:

AAR's Net-Net Working Capital Per Share for the quarter that ended in Feb. 2024 is calculated as:

	Net-Net Working Capital Per Share
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(69.2	+	0.75 * 220	+	0.5 * 671.5	-	853.8
-	0	-	0)	/	35.4271
=	-8.01

Be Aware

Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.

If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.

Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.

AAR Accounts Receivable Related Terms

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AAR (AIR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » AAR Corp (NYSE:AIR) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

ARZ:Germany ARZ:Germany

Address

1100 N. Wood Dale Road, One AAR Place, Wood Dale, IL, USA, 60191

Website

https://www.aarcorp.com

AAR Corp is engaged in providing products and services to aviation, government, and defense market. It operates in two segments namely Aviation Services and Expeditionary Services. The Aviation Services segment consists of aftermarket support and services businesses that provide spares and maintenance support for aircraft operated by it's commercial and government/defense customers. The Expeditionary Services segment consists of businesses that provide products and services supporting the movement of equipment and personnel by the U.S. Department of Defense, foreign governments, and non-governmental organizations. It generates a majority of its revenue from the Aviation Services Segment.

Executives

Peter Pace	director	C/O AAR CORP., 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Holmes John Mcclain Iii	officer: Group Vice President	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Billy Nolen	director	1100 N WOOD DALE RD, WOOD DALE IL 60191
Sean M. Gillen	officer: VP-CFO	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Eric Pachapa	officer: VP, Controller and CAO	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Jessica A. Garascia	officer: Vice President and Secretary	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Tracey Patterson	officer: Sr. VP & Chief HR Officer	1100 N WOOD DALE RD, WOOD DALE IL 60191
Christopher A. Jessup	officer: Vice President-CCO	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Jennifer L Vogel	director	C/O AAR CORP., 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
John W Dietrich	director
Anthony Anderson	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Gilbertson H John Jr	director	3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
David P Storch	director, officer: President, CEO & Director	C/O AAR CORP, 1111 NICHOLAS BLVD, 1111 NICHOLAS BLVD IL 60007
Michael Ross Boyce	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Ellen M. Lord	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191