AAR Corp (AIR)
Gross profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 442,300 | 370,100 | 313,200 | 275,900 | 269,200 |
| Revenue | US$ in thousands | 2,272,900 | 1,977,600 | 1,815,900 | 1,627,100 | 2,062,700 |
| Gross profit margin | 19.46% | 18.71% | 17.25% | 16.96% | 13.05% |
May 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $442,300K ÷ $2,272,900K
= 19.46%
The gross profit margin of AAR Corp has shown a steady improvement over the past five years, reflecting the company's ability to effectively control its production costs and generate profits from its core operations. The margin has increased from 13.05% in May 2020 to 19.46% in May 2024, indicating a consistent growth trend. This improvement suggests that AAR Corp has been able to enhance its operational efficiency and pricing strategies, resulting in a higher percentage of revenue retained as gross profit. Overall, the increasing trend in the gross profit margin is a positive signal of the company's financial health and operational effectiveness.
Peer comparison
May 31, 2024