AAR Corp (AIR)
Return on equity (ROE)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 12,500 | 46,300 | 90,200 | 78,700 | 35,800 |
| Total stockholders’ equity | US$ in thousands | 1,211,600 | 1,189,800 | 1,099,100 | 1,034,500 | 974,400 |
| ROE | 1.03% | 3.89% | 8.21% | 7.61% | 3.67% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $12,500K ÷ $1,211,600K
= 1.03%
Based on the provided data, AAR Corp’s return on equity (ROE) reflects notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025.
In May 2021, the ROE was recorded at 3.67%, indicating a modest level of profitability relative to shareholders’ equity. This figure increased significantly by May 31, 2022, reaching 7.61%, which suggests an improvement in the company's ability to generate profits from its equity base. The upward trend persisted into May 31, 2023, with the ROE rising further to 8.21%, indicating enhanced efficiency and profitability as the company potentially benefited from operational improvements or favorable market conditions.
However, by May 31, 2024, the ROE declined sharply to 3.89%, signaling a downturn in the company’s profitability relative to its equity. This decrease could be attributable to various factors such as increased expenses, reduced net income, or changes in the equity base. The declining trend continued into May 31, 2025, with the ROE falling further to 1.03%, representing a significant erosion of profitability margins and possibly reflecting challenges in maintaining operational efficiency or external market pressures.
Overall, the data illustrates a pattern of recovery followed by a substantial decline in ROE over the examined period. The initial growth from 2021 to 2023 suggests period of operational or financial improvement, whereas the subsequent decline indicates potential difficulties or strategic shifts impacting shareholder returns. Continued monitoring of underlying financial metrics and contextual factors would be necessary to fully understand the causes of this variability.
Peer comparison
May 31, 2025