AAR Corp (AIR)
Operating return on assets (Operating ROA)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 185,200 | 156,600 | 128,100 | 168,700 | 150,600 | 142,500 | 133,900 | 128,000 | 133,900 | 129,000 | 125,300 | 123,000 | 106,900 | 96,200 | 105,600 | 97,100 | 85,200 | 49,600 | 15,200 | 21,700 |
| Total assets | US$ in thousands | 2,844,600 | 2,859,100 | 2,849,300 | 2,783,300 | 2,770,000 | 2,021,800 | 1,965,600 | 1,954,400 | 1,833,100 | 1,673,300 | 1,646,900 | 1,598,900 | 1,573,900 | 1,552,000 | 1,529,600 | 1,535,700 | 1,539,700 | 1,642,800 | 1,669,300 | 1,713,800 |
| Operating ROA | 6.51% | 5.48% | 4.50% | 6.06% | 5.44% | 7.05% | 6.81% | 6.55% | 7.30% | 7.71% | 7.61% | 7.69% | 6.79% | 6.20% | 6.90% | 6.32% | 5.53% | 3.02% | 0.91% | 1.27% |
May 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $185,200K ÷ $2,844,600K
= 6.51%
The operating return on assets (ROA) for AAR Corp exhibits notable fluctuations over the analyzed period. Beginning at 1.27% as of August 31, 2020, the metric shows a significant upward trajectory in the subsequent quarters, reaching a peak of 7.69% on August 31, 2022. This period marked a period of solid operational efficiency, presumably supported by improved margins and effective asset utilization.
Following this peak, there is a slight decline in late 2022 and early 2023, with the ROA stabilizing around 7.71% on February 28, 2023, indicating maintained operational performance at a high level. However, a downward trend emerges afterward, with the figure decreasing to approximately 5.44% as of May 31, 2024, representing a notable reduction from previous highs. This decline continues into late 2024, hitting a low of around 4.50% on November 30, 2024, before modestly recovering to 6.51% on May 31, 2025.
Throughout the analyzed timeframe, the operating ROA reflects periods of growth, stability, and contraction, indicative of changing operational conditions and potentially external market influences. The initial increases suggest improving operational efficiency and profitability, while subsequent declines may point to increased competitive pressures, changes in operational costs, or shifts in asset utilization effectiveness. Overall, the trend highlights the company's variable operating performance over time, with periods of strong profitability preceding a recent decline and subsequent partial recovery.
Peer comparison
May 31, 2025