AAR Corp. cash flow to debt ratio of 3.63% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

AAR Corp.'s free cash flow has decreased 89.93% from $13.90M last year to $1.40M, signaling decreasing performance

AAR Corp.'s debt to equity ratio is 0.58, which means that the company's assets are healthy financed, signaling financial stability.

AAR Corp.'s debt has decreased relative to shareholder equity from 0.86 last year to 0.58 today, signaling strengthened financials

AAR Corp. has a net debt to EBITDA ratio of 2.63x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

AAR Corp.'s interest coverage ratio of 3.80 indicates that earnings with good margin can cover interest payments on company debt

AAR Corp.'s profit margin has increased (1.16K%) in the last year from 0.45% to 5.67%, signaling increasing performance

AAR Corp.'s short-term assets of $1.74B exceed its short-term liabilities of $613.20M

AAR Corp.'s return on assets of 5.59% is higher than the 5.00% threshold, indicating efficient asset utilization

AAR Corp.'s return on equity of 12.19%, is lower than 15.00%, indicating bad performance

AAR Corp.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

AAR Corp. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

AAR Corp. has positive free cash flow, indicating the company generates cash after capital expenditures

AAR Corp. has a free cash flow yield of 0.02%, which is below the 2.00% threshold, indicating limited cash return relative to market value

AAR Corp.'s yearly earnings has increased 1.40K% since last year from $12.50M to $187.70M, signaling increasing performance

AAR Corp.'s yearly revenue has decreased 100.00% since last year from $2.78B to $0.00, signaling decreasing performance

ROIC 7.59% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

AAR Corp.'s 3-year revenue CAGR of 18.45% is positive, indicating growing revenue over the past 3 years

AAR Corp. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

AAR Corp. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

AAR Corp. has insufficient data to evaluate this check.

AAR Corp. has an earnings yield of 3.34%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

AAR Corp. is overvalued relative to its fair value price of 5.92 based on EBITDA multiple model

AAR Corp. has an EV/EBITDA ratio of 19.09x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

AAR Corp. is overvalued relative to its fair value price of 110.34 based on Earnings Fair Value model

AAR Corp. has a PEG-ratio under 1 which is considered undervalued

AAR Corp. has a price-to-book ratio of 3.30x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

AAR Corp. has a price-to-sales ratio of 1.70x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue