AAR Corp (AIR)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 185,200 | 129,200 | 133,900 | 106,900 | 85,200 |
| Total assets | US$ in thousands | 2,844,600 | 2,770,000 | 1,833,100 | 1,573,900 | 1,539,700 |
| Operating ROA | 6.51% | 4.66% | 7.30% | 6.79% | 5.53% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $185,200K ÷ $2,844,600K
= 6.51%
The operating return on assets (ROA) for AAR Corp has exhibited notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025.
As of May 31, 2021, the operating ROA stood at 5.53%, indicating the company's efficiency in generating operating income relative to its assets at that time. This figure increased significantly by May 31, 2022, reaching 6.79%, reflecting improved operational efficiency and a better utilization of assets to produce operating earnings. The upward trend continued into May 31, 2023, when the operating ROA further increased to 7.30%, suggesting an ongoing enhancement in operational performance or asset management effectiveness.
However, there was a decline observed by May 31, 2024, with the operating ROA dropping to 4.66%. This decrease may point to challenges in maintaining previous levels of operational profitability or potential increases in asset base without a commensurate rise in operating income. Despite this setback, the metric rebounded modestly by May 31, 2025, to 6.51%, indicating a recovery in operational efficiency and possibly improved asset utilization.
Overall, the trend demonstrates a period of growth in operating efficiency from 2021 through 2023, followed by a dip in 2024, and subsequent recovery in 2025. These fluctuations could be attributed to various internal and external factors influencing operating income and asset performance, such as market conditions, operational strategies, or industry dynamics.
Peer comparison
May 31, 2025