AAR Corp (AIR)
Return on total capital
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 101,500 | 104,000 | 105,200 | 100,200 | 133,800 | 129,500 | 127,200 | 123,500 | 107,700 | 96,300 | 106,200 | 91,700 | 59,000 | 21,600 | -14,700 | -7,300 | 19,300 | 62,300 | 22,000 | 12,400 |
| Long-term debt | US$ in thousands | 985,400 | 274,700 | 275,000 | 304,800 | 269,700 | 185,600 | 197,200 | 114,100 | 98,900 | 103,300 | 103,200 | 127,600 | 133,700 | 206,000 | 220,300 | 255,100 | 600,000 | 206,000 | 196,100 | 202,200 |
| Total stockholders’ equity | US$ in thousands | 1,189,800 | 1,168,000 | 1,155,500 | 1,121,900 | 1,099,100 | -126,700 | 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 | 902,600 | 929,400 | 921,700 | 909,500 |
| Return on total capital | 4.67% | 7.21% | 7.35% | 7.02% | 9.77% | 219.86% | 10.32% | 10.73% | 9.50% | 8.59% | 9.57% | 8.22% | 5.32% | 1.90% | -1.31% | -0.64% | 1.28% | 5.49% | 1.97% | 1.12% |
May 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $101,500K ÷ ($985,400K + $1,189,800K)
= 4.67%
The return on total capital for AAR Corp has shown variability over the past few periods. There was a significant spike in the return on total capital in February 2023, but this seems to be an outlier as it was much higher than the other values. The return on total capital has generally been positive, with the latest value at 4.67% as of May 31, 2024. The return on total capital has fluctuated between 1.12% and 10.73% over the past few periods, indicating some inconsistency in the company's ability to generate returns on its total capital. Further analysis and comparison with industry benchmarks would be necessary to fully evaluate the company's performance in utilizing its total capital effectively.
Peer comparison
May 31, 2024