AAR Corp (AIR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,770,000 | 1,833,100 | 1,573,900 | 1,539,700 | 2,079,000 |
| Operating ROA | 4.39% | 7.35% | 6.72% | 4.81% | 1.24% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $121,600K ÷ $2,770,000K
= 4.39%
The operating return on assets (operating ROA) of AAR Corp has fluctuated over the past five years. In May 2024, the operating ROA was 4.39%, which represents a decrease from 7.35% in May 2023 and 6.72% in May 2022. The company experienced a notable improvement in operating ROA from 4.81% in May 2021 to 7.35% in May 2023, but this trend reversed in the most recent year.
The operating ROA measures how efficiently AAR Corp is generating operating profits from its assets. A lower operating ROA in May 2024 compared to previous years may indicate challenges in effectively utilizing assets to generate operating income. It is crucial for the company to assess and address the factors contributing to this decline to improve profitability and operational efficiency in the future.
Peer comparison
May 31, 2024