AAR Corp (AIR)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 12,500 | -12,400 | 10,500 | 64,900 | 46,300 | 60,400 | 68,200 | 66,900 | 90,200 | 90,900 | 91,600 | 89,900 | 78,700 | 68,800 | 74,400 | 61,800 | 35,800 | 5,300 | -20,500 | -14,500 |
| 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 |
| ROA | 0.44% | -0.43% | 0.37% | 2.33% | 1.67% | 2.99% | 3.47% | 3.42% | 4.92% | 5.43% | 5.56% | 5.62% | 5.00% | 4.43% | 4.86% | 4.02% | 2.33% | 0.32% | -1.23% | -0.85% |
May 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $12,500K ÷ $2,844,600K
= 0.44%
The analysis of AAR Corp's return on assets (ROA) over the period from August 2020 to May 2025 reveals notable fluctuations and trends in the company's efficiency at generating profit relative to its total assets.
Initially, the company's ROA was negative at -0.85% as of August 31, 2020, indicating a period of operational losses or challenges in asset utilization. This negative figure became more pronounced by November 30, 2020, decreasing to -1.23%. Subsequently, the ROA improved significantly, turning positive at 0.32% by February 28, 2021, signaling a recovery phase. The upward trend continued, with ROA increasing to 2.33% as of May 31, 2021, and further rising to 4.02% on August 31, 2021. This suggests a period of strong operational performance and efficient asset management during this timeframe.
Throughout late 2021 and into early 2022, the ROA demonstrated stability at elevated levels, peaking at 5.62% on August 31, 2022. The ROA remained relatively high through November 2022 with a value of 5.56% and slightly decreased thereafter, registering 4.43% on February 28, 2022, and 5.00% on May 31, 2022. This sustained profitability indicates consistent operational efficiency in this period.
However, the trend shifted after mid-2022 as the ROA gradually declined, reaching 3.42% by August 31, 2023, and further decreasing to 3.47% by November 30, 2023. The continuing downward trajectory persisted into early 2024, with the ROA at 2.99% on February 29, 2024. This decline may reflect operational or market-related challenges impacting asset productivity.
In the subsequent period, the ROA experienced further deterioration, dropping to 1.67% on May 31, 2024, and fluctuating at low levels thereafter, with a slight increase to 2.33% on August 31, 2024, and then declining sharply to 0.37% by November 30, 2024. Moving into early 2025, the ROA reached negative territory at -0.43% on February 28, 2025, indicating a period of losses, before slightly improving to 0.44% on May 31, 2025.
Overall, the data depict a company's transition from initial challenges and negative profitability toward a phase of strong asset use and profit generation in late 2021 and 2022, followed by a steady decline in efficiency and profitability post-2022, culminating in near break-even or negative ROA figures in early 2025. This pattern suggests significant shifts in operational performance, efficiency, or external market conditions affecting the company's ability to utilize its assets profitably over time.
Peer comparison
May 31, 2025