AeroVironment Inc (AVAV)
Profitability ratios
Return on sales
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.00% | 39.62% | 32.10% | 31.69% | 41.67% |
| Operating profit margin | 5.89% | 10.02% | -4.25% | -4.53% | 10.97% |
| Pretax margin | 5.73% | 8.82% | -34.85% | -4.29% | 8.70% |
| Net profit margin | 6.30% | 8.32% | -32.14% | -1.97% | 8.57% |
The profitability ratios of AeroVironment Inc. over the specified periods reflect notable fluctuations with an overall trend towards recovery and improved margins in recent years.
The gross profit margin experienced a decline from 41.67% in April 2021 to a low of 31.69% in April 2022, indicating a reduction in the proportion of revenue remaining after cost of goods sold. However, it demonstrated a strong recovery thereafter, reaching 39.62% in April 2024 and further increasing to 46.00% in April 2025. This pattern suggests efforts in managing production costs or pricing strategies have positively impacted gross profitability in recent periods.
Operating profit margins show a significant decline into negative territory in 2022 and 2023, with values of -4.53% and -4.25%, respectively, reflecting operational challenges during those years. Nonetheless, the margin recovered to 10.02% in 2024 and slightly declined to 5.89% in 2025. These changes indicate a period of operational distress followed by a return to profitability as operational efficiencies and revenue quality improved.
The pretax margin followed a similar trend, plunging to -4.29% in 2022 and reaching a low of -34.85% in 2023. This sharp deterioration points to significant challenges affecting pre-tax earnings, likely due to increased costs or other extraordinary factors during that period. Recovery was evident in 2024 with a margin of 8.82% and a slight decrease to 5.73% in 2025, aligning with overall turnaround efforts.
Net profit margins, after showing a slight positive margin of 8.57% in 2021, declined to -1.97% in 2022 and severely dropped to -32.14% in 2023, confirming losses at the net income level during those years. The subsequent rebound to 8.32% in 2024 and 6.30% in 2025 underscores a substantial improvement in the company’s bottom-line profitability and operational performance.
Overall, AeroVironment Inc. experienced a period of profitability decline during 2022 and 2023, reflecting operational and possibly strategic challenges. Recent years reveal a steady improvement in all profitability ratios, indicating a positive trajectory toward restoring profitability and operational stability.
Return on investment
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.64% | 7.07% | -2.79% | -2.21% | 4.66% |
| Return on assets (ROA) | 3.89% | 5.87% | -21.07% | -0.96% | 3.64% |
| Return on total capital | 0.00% | 8.11% | -32.49% | -2.25% | 5.72% |
| Return on equity (ROE) | 4.92% | 7.25% | -31.53% | -1.44% | 5.53% |
The profitability ratios of AeroVironment Inc. over the analyzed periods reveal notable fluctuations impacting the company's financial performance.
Starting with the Operating Return on Assets (Operating ROA), there was a decline from 4.66% as of April 30, 2021, to a negative value of -2.21% in April 2022, followed by a further decrease to -2.79% in April 2023. This downward trend indicates a period of operational underperformance. However, a significant turnaround occurred in April 2024, with the Operating ROA increasing sharply to 7.07%, suggesting improved operational efficiency. The subsequent estimate for April 2025 reflects a moderation to 3.64%, although still representing a positive return.
The Return on Assets (ROA) similarly experienced a decline from 3.64% in 2021 to -0.96% in 2022, and further plummeted to -21.07% in 2023. This pattern points to a substantial deterioration in overall asset profitability, likely influenced by the negative operational results during that period. The recovery appears in 2024 with ROA reaching 5.87%, indicating a return to positive profitability, with the forecasted figure for 2025 at 3.89%, demonstrating a moderated but stable profitability level.
Regarding Return on Total Capital, the ratio decreased from 5.72% in 2021 to -2.25% in 2022, and subsequently worsened to -32.49% in 2023, reflecting significant challenges in generating returns on all invested capital. The situation improved markedly in 2024, with the ratio rising to 8.11%, before dropping to zero in 2025, which may suggest changes in capital structure or a stabilization at a break-even point.
Return on Equity (ROE) followed a similar trend, declining from 5.53% in 2021 to -1.44% in 2022, dipping further to -31.53% in 2023, indicating severely diminished shareholder returns during that period. The metric rebounded to 7.25% in 2024, reflecting a recovery in shareholder value, before declining slightly to 4.92% in 2025.
Overall, the data demonstrates that AeroVironment experienced a period of substantial profitability decline around 2022 and 2023, coinciding with negative operating and asset returns. The subsequent recovery in 2024 suggests renewal in operational effectiveness and overall profitability, though the figures for 2025 indicate some moderation and potential stabilization.