AAR Corp (AIR)
Operating profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 121,600 | 134,800 | 105,800 | 74,100 | 25,700 |
| Revenue | US$ in thousands | 2,272,900 | 1,977,600 | 1,815,900 | 1,627,100 | 2,062,700 |
| Operating profit margin | 5.35% | 6.82% | 5.83% | 4.55% | 1.25% |
May 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $121,600K ÷ $2,272,900K
= 5.35%
The operating profit margin for AAR Corp has shown some fluctuations over the past five years. In May 2024, the operating profit margin decreased to 5.35% from 6.82% in May 2023. This decline could indicate a decrease in operating efficiency or higher operating costs relative to revenue during the most recent period. However, it is important to note that the operating profit margin in 2024 is still higher than the levels observed in 2021 and 2020, suggesting an overall improvement in operating profitability over the longer term.
The highest operating profit margin was recorded in May 2023 at 6.82%, indicating strong operational performance and efficiency during that period. On the other hand, the lowest operating profit margin was observed in May 2020 at 1.25%, which could be a result of various factors such as economic conditions, industry competition, or internal operational challenges.
Overall, while there has been some variability in AAR Corp's operating profit margin in recent years, the company has generally maintained a reasonable level of operating profitability relative to its revenue. The management may need to closely monitor cost management and operational efficiency to sustain or improve the operating profit margin in the future.
Peer comparison
May 31, 2024