AAR (FRA:ARZ) LT-Debt-to-Total-Asset: 0.29 (As of Feb. 2026)

AAR FRA:ARZ +2.40% 83 LT-Debt-to-Total-Asset is 0.29 as of Feb. 2026. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €76.89 (Significantly Overvalued). The stock has 7 warning signs investors should review.

LT Debt to Total Assets is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligationdivide by its Total Assets. AAR's long-term debt to total assests ratio for the quarter that ended in Feb. 2026 was 0.29.

AAR's long-term debt to total assets ratio declined from Feb. 2025 (0.38) to Feb. 2026 (0.29). It may suggest that AAR is progressively becoming less dependent on debt to grow their business.

AAR (FRA:ARZ) LT-Debt-to-Total-Asset Explanation

LT Debt to Total Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

AAR LT-Debt-to-Total-Asset Related Terms

AAR LT-Debt-to-Total-Asset Historical Data

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The historical data trend for AAR's LT-Debt-to-Total-Asset 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.

AAR LT-Debt-to-Total-Asset Chart

AAR Annual Data

Trend

May16

May17

May18

May19

May20

May21

May22

May23

May24

May25

LT-Debt-to-Total-Asset

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0.13

0.10

0.17

0.39

0.37

AAR Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
LT-Debt-to-Total-Asset	Get a 7-Day Free Trial															0.38	0.37	0.38	0.32	0.29

83GF Score

AAR Corp FRA:ARZ

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AAR LT-Debt-to-Total-Asset Calculation

AAR's Long-Term Debt to Total Asset Ratio for the fiscal year that ended in May. 2025 is calculated as

LT Debt to Total Assets (A: May. 2025 )	=	Long-Term Debt & Capital Lease Obligation (A: May. 2025 )	/	Total Assets (A: May. 2025 )
	=	929.221	/	2523.16
	=	0.37

AAR's Long-Term Debt to Total Asset Ratio for the quarter that ended in Feb. 2026 is calculated as

LT Debt to Total Assets (Q: Feb. 2026 )	=	Long-Term Debt & Capital Lease Obligation (Q: Feb. 2026 )	/	Total Assets (Q: Feb. 2026 )
	=	828.826	/	2819.295
	=	0.29

Frequently Asked Questions Learn more about LT-Debt-to-Total-Asset →

What does a LT-Debt-to-Total-Asset of 0.29 mean?

AAR (FRA:ARZ) has a LT-Debt-to-Total-Asset of 0.29 as of Feb. 2026. Long-term Debt to Total Asset ratio is the ratio of total long-term debt to total assets. View historical data on AAR and its competitors.

Is AAR's LT-Debt-to-Total-Asset too high?

AAR's current LT-Debt-to-Total-Asset is 0.29. Overall, AAR has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does AAR's LT-Debt-to-Total-Asset compare to KRMN and VSEC?

AAR's LT-Debt-to-Total-Asset of 0.29 can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good LT-Debt-to-Total-Asset for an Aerospace & Defense company?

A good LT-Debt-to-Total-Asset depends on the Aerospace & Defense industry context. However, LT-Debt-to-Total-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high LT-Debt-to-Total-Asset mean?

A high LT-Debt-to-Total-Asset can signal that a stock is expensive relative to its fundamentals. Long-term Debt to Total Asset ratio is the ratio of total long-term debt to total assets. View historical data on AAR and its competitors. AAR's current LT-Debt-to-Total-Asset is 0.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is AAR stock overvalued right now?

Based on GuruFocus' analysis, AAR (FRA:ARZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €76.89, compared to a current price of €123.50 — trading 60.6% above its estimated fair value. The current LT-Debt-to-Total-Asset is 0.29. AAR's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is LT-Debt-to-Total-Asset calculated?

LT-Debt-to-Total-Asset is calculated from a company's financial statements. For AAR (FRA:ARZ), the current LT-Debt-to-Total-Asset is 0.29 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is AAR (FRA:ARZ) Overvalued in 2026?

Based on GuruFocus' analysis, AAR stock appears to be overvalued. The current stock price of €123.50 is trading 60.6% above its estimated GF Value™ of €76.89. GuruFocus considers AAR to be Significantly Overvalued.

Key valuation signals for FRA:ARZ:

LT-Debt-to-Total-Asset: 0.29
GF Value™: €76.89 vs. price of €123.50 (60.6% above fair value)
GF Score™: 83/100 with 7 warning signs

No single metric tells the full story. See the FRA:ARZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

AAR Business Description

Industry Industrials Aerospace & Defense

Comparable Companies KRMN VSEC MRCY DPC AVAV FLY ATRO HXL LOAR BETA SPCX GE RTX XPAR:AIR BA XPAR:SAF LSE:RR.LMT HWM GD

Other Exchanges AIR:USA

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 segments namely: The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts; Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services; Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, flight hour component inventory; and The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and NGOs.

83GF Score

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LT-Debt-to-Total-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€123.50

Price

€76.89

GF Value

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