AAR Corp (AIR)
Return on total capital
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 101,500 | 133,800 | 107,700 | 59,000 | 19,300 |
| Long-term debt | US$ in thousands | 985,400 | 269,700 | 98,900 | 133,700 | 600,000 |
| Total stockholders’ equity | US$ in thousands | 1,189,800 | 1,099,100 | 1,034,500 | 974,400 | 902,600 |
| Return on total capital | 4.67% | 9.77% | 9.50% | 5.32% | 1.28% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $101,500K ÷ ($985,400K + $1,189,800K)
= 4.67%
AAR Corp's return on total capital has fluctuated over the past five years, ranging from a low of 1.28% in May 2020 to a high of 9.77% in May 2023. The return on total capital decreased from 9.77% in May 2023 to 4.67% in May 2024, indicating a decline in the company's ability to generate profits relative to its total capital employed. This decrease could be attributed to various factors such as changes in the company's profitability, efficiency, or capital structure. Overall, AAR Corp's return on total capital has shown variability over the years, reflecting fluctuations in the company's financial performance and efficiency in utilizing its total capital resources.
Peer comparison
May 31, 2024