AAR Corp (AIR)
Return on assets (ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 46,300 | 90,200 | 78,700 | 35,800 | 4,400 |
| Total assets | US$ in thousands | 2,770,000 | 1,833,100 | 1,573,900 | 1,539,700 | 2,079,000 |
| ROA | 1.67% | 4.92% | 5.00% | 2.33% | 0.21% |
May 31, 2024 calculation
ROA = Net income ÷ Total assets
= $46,300K ÷ $2,770,000K
= 1.67%
AAR Corp's Return on Assets (ROA) has fluctuated over the past five years. In 2024, the ROA decreased to 1.67% from 4.92% in 2023 and 5.00% in 2022. This decline suggests that AAR Corp's ability to generate profits from its assets decreased in 2024 compared to the previous two years.
However, the ROA in 2024 is still higher than in 2021 and 2020, indicating improvement from those years. The significant increase from 0.21% in 2020 to 1.67% in 2024 could be viewed positively as a sign of enhanced asset utilization and profitability.
Overall, while the recent ROA decrease is worth noting, the long-term trend shows some variability but a general improvement in AAR Corp's ability to generate returns from its assets in recent years. Tracking the company's asset utilization efficiency and profitability over time can provide insight into its operational performance and financial health.
Peer comparison
May 31, 2024