AAR Corp (AIR)
Pretax margin
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 58,300 | 74,900 | 84,200 | 83,300 | 121,600 | 121,900 | 122,800 | 120,700 | 105,300 | 93,600 | 103,000 | 87,700 | 54,000 | 14,700 | -22,900 | -16,100 | 10,000 | 53,500 | 13,000 | 2,800 |
| Revenue (ttm) | US$ in thousands | 2,272,900 | 2,183,800 | 2,146,300 | 2,075,600 | 1,977,600 | 1,904,800 | 1,839,500 | 1,806,700 | 1,815,900 | 1,776,800 | 1,734,400 | 1,701,900 | 1,627,100 | 1,607,600 | 1,758,900 | 1,915,600 | 2,075,300 | 2,221,500 | 2,187,900 | 2,119,700 |
| Pretax margin | 2.57% | 3.43% | 3.92% | 4.01% | 6.15% | 6.40% | 6.68% | 6.68% | 5.80% | 5.27% | 5.94% | 5.15% | 3.32% | 0.91% | -1.30% | -0.84% | 0.48% | 2.41% | 0.59% | 0.13% |
May 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $58,300K ÷ $2,272,900K
= 2.57%
The pretax margin of AAR Corp has shown fluctuations over the past few quarters. In the most recent quarter ending May 31, 2024, the pretax margin was 2.57%, which was lower compared to the previous quarter at 3.43%. There was a gradual decline in pretax margin from November 2021 to May 2023, where it dropped from 5.94% to 6.15% before declining to 2.57% in the latest quarter.
The pretax margin peaked at 6.68% in November 2022 and August 2022 before stabilizing around the 5-6% range in the subsequent quarters. However, there was a significant drop in the pretax margin in May 2021 and February 2021, where it fell to 0.91% and 3.32% respectively.
Overall, the pretax margin of AAR Corp has exhibited variability, with some quarters showing stronger profitability levels compared to others. It is important for the company to closely monitor and manage its operational efficiency and cost structure to maintain a healthy and sustainable pretax margin in the future.
Peer comparison
May 31, 2024