AAR Corp (AIR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 47,900 | 92,300 | 118,100 | 159,000 | 113,600 | 104,600 | 107,100 | 102,500 | 135,700 | 134,400 | 130,100 | 125,100 | 109,400 | 96,300 | 80,500 | 56,000 | 24,200 | -13,000 | -23,300 | 1,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 3.95% | 7.80% | 9.99% | 13.14% | 9.55% | 8.96% | 9.27% | 9.14% | 12.35% | 12.59% | 12.57% | 12.07% | 10.58% | 9.46% | 7.99% | 5.67% | 2.48% | -1.39% | -2.59% | 0.13% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $47,900K ÷ ($—K + $1,211,600K)
= 3.95%
The data on AAR Corp's Return on Total Capital (ROTC) over a series of reporting periods reveals notable fluctuations during the period from August 2020 to May 2025. Initially, in August 2020, the ROTC was very low at 0.13%, reflecting minimal returns relative to total capital. The subsequent months saw significant volatility, with negative returns recorded in November 2020 (-2.59%) and February 2021 (-1.39%), indicating periods of unprofitability or challenges in generating returns on the capital employed.
Starting from May 2021, a marked upward trend in ROTC is observed, with positive gains emerging, culminating in a peak of 12.59% in February 2023. This sustained increase suggests improving operational efficiency, better asset utilization, or enhanced profitability over this period. The ROTC remained relatively high through August 2023, at 9.14%, before experiencing a slight decline in subsequent periods.
From August 2023 onwards, the ROTC exhibits variability, with a temporary decline to 9.27% in November 2023, followed by a further reduction to 8.96% in February 2024. A recovery is noted in May 2024, when the ROTC increased to 13.14%, marking a period of strong performance. However, this upward momentum appears short-lived, as the ROTC drops again in November 2024 to 9.99%, and continues to decline to 7.80% by February 2025. The latest data point from May 2025 indicates a further decrease to 3.95%, signifying a significant reduction in the efficiency with which the company is generating returns on its total capital.
Overall, the dataset illustrates periods of significant volatility, with an initial phase of challenges and losses, followed by a strong growth phase, and subsequent fluctuations in recent periods. The variations suggest that AAR Corp has experienced periods of operational strength interspersed with times of diminished efficiency or external headwinds impacting its ability to generate consistent returns on total capital.
Peer comparison
May 31, 2025