AAR Corp (AIR)

Pretax margin

		May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	58,300	121,600	105,300	54,000	10,000
Revenue	US$ in thousands	2,272,900	1,977,600	1,815,900	1,627,100	2,062,700
Pretax margin		2.57%	6.15%	5.80%	3.32%	0.48%

May 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $58,300K ÷ $2,272,900K
= 2.57%

The pretax margin of AAR Corp has fluctuated over the past five years, ranging from 0.48% in 2020 to 6.15% in 2023. In 2024, the pretax margin decreased to 2.57%, indicating a lower profitability before taxes compared to the previous year. This decrease suggests that the company's ability to generate earnings relative to its total revenue has declined. It is essential for AAR Corp to monitor and analyze the factors contributing to this decline in pretax margin to identify opportunities for improvement in operational efficiency and cost management.

Peer comparison

May 31, 2024

Company name

Symbol

Pretax margin

AAR Corp

AIR

2.57%