AAR Corp (AIR)
Total asset turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,780,500 | 2,318,900 | 1,990,500 | 1,820,000 | 1,652,300 |
| Total assets | US$ in thousands | 2,844,600 | 2,770,000 | 1,833,100 | 1,573,900 | 1,539,700 |
| Total asset turnover | 0.98 | 0.84 | 1.09 | 1.16 | 1.07 |
May 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,780,500K ÷ $2,844,600K
= 0.98
The analysis of AAR Corp's total asset turnover over the period from May 2021 to May 2025 reveals notable fluctuations in the company's operational efficiency in utilizing its assets to generate sales.
In May 2021, the total asset turnover stood at 1.07, indicating that the company generated $1.07 in sales for each dollar of assets. This metric increased in May 2022 to 1.16, suggesting an improvement in asset utilization and operational efficiency. However, by May 2023, the ratio declined slightly to 1.09, reflecting a modest reduction in asset efficiency but still higher than the 2021 level.
A significant decrease is observed in May 2024, where the ratio dropped to 0.84. This decline indicates a reduction in sales effectiveness relative to asset base, which could be attributed to factors such as operational challenges, increased asset base without proportional sales growth, or market conditions impacting revenue generation. Subsequently, by May 2025, the ratio increased to 0.98, approaching the levels observed in 2023 but still below the 2022 peak, signaling a partial recovery in asset utilization efficiency.
Overall, the trend indicates initial growth in asset efficiency followed by a notable dip in 2024, with a slight recovery in 2025. The fluctuations suggest that while AAR Corp experienced periods of operational strength, recent years have seen challenges impacting the efficacy of asset usage in driving sales.
Peer comparison
May 31, 2025