AAR Corp (AIR)

The analysis of AAR Corp's return on assets (ROA) over the specified period reveals notable fluctuations in the company's profitability relative to its asset base. As of May 31, 2021, the ROA stood at 2.33%, indicating a modest utilization of assets to generate net income. This figure increased significantly by May 31, 2022, reaching 5.00%, which reflects a more efficient deployment of assets and improved profitability during that year.

However, the ROA experienced a slight decline in the subsequent year, dropping to 4.92% as of May 31, 2023. Despite this decrease, the figure remained substantially higher than the 2021 level, suggesting sustained improvements in asset utilization or profit margins relative to assets. Nonetheless, a sharp decline followed in the next period, with the ROA decreasing markedly to 1.67% as of May 31, 2024. This decline indicates a reduced efficiency in generating income from assets, potentially due to operational challenges, increased asset base without proportional income increases, or shifts in profitability margins.

The trend continued with the ROA decreasing further to 0.44% as of May 31, 2025, approaching levels indicative of diminished asset efficiency and profitability. This significant reduction over the two-year span underscores potential difficulties faced by AAR Corp in leveraging its assets effectively to generate net income.

Overall, the data depicts a pattern of initial growth in ROA culminating in a sharp decline, highlighting a period of decreased operational efficiency and profitability relative to assets in the most recent year analyzed. The trend warrants further investigation into underlying factors such as asset base changes, operational cost structures, or industry conditions impacting profitability margins.

Peer comparison

May 31, 2025