AAR Corp (AIR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,211,600 | 1,182,600 | 1,181,600 | 1,210,200 | 1,189,800 | 1,168,000 | 1,155,500 | 1,121,900 | 1,099,100 | 1,067,700 | 1,035,300 | 1,036,500 | 1,034,500 | 1,017,700 | 1,007,000 | 988,200 | 974,400 | 932,400 | 900,700 | 890,600 |
| ROE | 1.03% | -1.05% | 0.89% | 5.36% | 3.89% | 5.17% | 5.90% | 5.96% | 8.21% | 8.51% | 8.85% | 8.67% | 7.61% | 6.76% | 7.39% | 6.25% | 3.67% | 0.57% | -2.28% | -1.63% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $12,500K ÷ $1,211,600K
= 1.03%
The analysis of AAR Corp's return on equity (ROE) over the specified periods reveals a pattern characterized by initial negative performance followed by a period of growth, subsequent stabilization, and a recent decline.
Initially, the ROE was negative at -1.63% as of August 31, 2020, and further declined to -2.28% by November 30, 2020, indicating that the company was not generating sufficient profit relative to its equity during this period. By February 28, 2021, the ROE transitioned into positive territory at 0.57%, suggesting an improvement in profitability metrics.
The period from May 31, 2021, through August 31, 2022, demonstrates a steady upward trend, with ROE rising from 3.67% to a peak of 8.67%. This indicates that the company was increasingly effective in leveraging its equity to generate profits during this phase, reflecting operational improvements or favorable market conditions.
However, after reaching this peak, the ROE exhibits signs of stabilization and slight decline. Notably, as of November 30, 2022, the ROE remains high at 8.85%, though it slightly decreases to 8.51% by February 28, 2023, and further to 8.21% on May 31, 2023. During this timeframe, the company maintained relatively strong profitability levels, albeit with a minor downward trend.
From August 31, 2023, onwards, a significant decline in ROE is observed, dropping to 5.96%, then further to 5.90% on November 30, 2023, and continuing downward to 5.17% by February 29, 2024. This downward movement suggests a reduction in profitability relative to shareholders’ equity, potentially attributable to increased costs, competitive pressures, or other operational challenges.
Recent data indicates a further decrease, with ROE reaching 3.89% on May 31, 2024. Interestingly, there is a modest recovery to 5.36% as of August 31, 2024. However, this upward movement is followed by a sharp decline to 0.89% on November 30, 2024, and subsequent negative territory at -1.05% as of February 28, 2025. The latest figure for May 31, 2025, shows a slight recovery to 1.03%, but overall, the trend indicates volatility and recent struggles in generating sustainable profitability relative to equity.
In summary, AAR Corp's ROE experienced a transition from negative to positive in early 2021, followed by a period of growth peaking around late 2022, then gradually declining with increased volatility. The recent negative and near-zero values highlight the company's challenges in maintaining consistent profitability relative to shareholder equity within the latest periods.
Peer comparison
May 31, 2025