AeroVironment Inc (AVAV)
Profitability ratios
Return on sales
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.23% | 39.16% | 38.58% | 37.84% | 37.69% | 38.68% | 40.49% | 42.35% | 40.99% | 39.26% | 37.10% | 32.72% | 29.03% | 28.11% | 27.12% | 30.82% | 31.31% | 29.10% | 30.14% | 28.77% |
| Operating profit margin | 5.18% | 4.46% | 6.63% | 7.61% | 7.98% | 10.75% | 13.00% | 15.48% | 10.44% | 7.93% | 4.57% | -2.28% | -3.95% | -5.86% | -8.00% | -1.70% | -1.74% | -4.30% | -2.68% | -4.86% |
| Pretax margin | 5.03% | 4.17% | 6.38% | 7.55% | 7.34% | 9.49% | 11.09% | 12.88% | -15.06% | -19.34% | -23.95% | -32.54% | -7.09% | -8.45% | -10.00% | -2.14% | -1.91% | -4.31% | -4.69% | -10.38% |
| Net profit margin | 5.54% | 4.44% | 6.39% | 7.24% | 6.88% | 8.64% | 10.20% | 11.93% | -14.69% | -18.75% | -23.02% | -29.70% | -2.98% | -4.80% | -6.84% | -4.48% | -3.19% | -1.31% | 1.19% | 1.14% |
The analysis of AeroVironment Inc.'s profitability ratios over the period from January 2022 to April 2025 reveals notable trends in the company’s financial performance.
Gross profit margin exhibits a consistent upward trajectory, reflecting an improvement in the company's ability to retain more revenue after covering direct costs. Beginning at approximately 28.77% in January 2022, the gross margin increased notably over time, reaching a peak of approximately 42.35% in October 2023, before showing slight fluctuations around 39% to 40% through April 2025. This trend suggests enhanced efficiency in production, cost management, or product mix optimizations.
Operating profit margin data indicates a significant turnaround from negative values in the earlier part of the period. Initially, AeroVironment reported operating margins as low as -8.00% in October 2022, with prolonged negative margins throughout 2022 and early 2023. Starting July 2023, the company shifted into positive territory, with operating margins reaching approximately 15.48% by October 2023. This improvement indicates enhanced operational efficiency and better cost control, culminating in a substantial shift from losses to profitability.
Pretax margin follows a similar pattern, initially negative, with values as low as -32.54% in April 2023. However, from October 2023 onwards, pretax margins turned positive and remained so, peaking around 12.88% in October 2023 before stabilizing at approximately 6% to 9% in subsequent periods. This shift underscores the company's successful reduction of costs or increase in revenues that improved profitability before accounting for taxes.
Net profit margin, while volatile in the earlier stages, shows a definitive reversal from negative figures to positive territory. It was negative through most of 2022 and early 2023, reaching a low of approximately -6.84% in October 2022. Starting October 2023, net margins became positive, with the latest data indicating a margin around 5.54% in April 2025. This transition reflects a significant strengthening in the company's bottom-line performance, likely driven by improved operational efficiency, cost management, and revenue growth.
Overall, AeroVironment Inc. has demonstrated a remarkable evolution from operating losses and minimal profitability to consistent positive margins across all profitability ratios by late 2023 and into 2024. The trajectory underscores improved operational efficiency, better cost control, and enhanced profitability prospects, aligning with a period of strategic turnaround and operational improvement.
Return on investment
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.64% | 3.16% | 4.95% | 5.78% | 5.65% | 8.06% | 9.29% | 10.24% | 6.96% | 5.99% | 3.36% | -1.57% | -2.11% | -2.96% | -3.94% | -0.88% | -0.85% | -2.06% | -1.30% | -2.38% |
| Return on assets (ROA) | 3.89% | 3.15% | 4.77% | 5.50% | 4.87% | 6.47% | 7.29% | 7.89% | -9.79% | -14.18% | -16.91% | -20.40% | -1.59% | -2.43% | -3.37% | -2.31% | -1.56% | -0.63% | 0.58% | 0.56% |
| Return on total capital | 3.03% | 3.65% | 5.57% | 6.63% | 7.22% | 9.85% | 10.78% | 12.98% | -10.04% | -19.18% | -18.88% | -30.99% | -3.41% | -3.46% | -5.72% | -1.04% | -1.28% | -2.34% | -3.55% | -5.24% |
| Return on equity (ROE) | 4.92% | 3.83% | 5.67% | 6.50% | 6.28% | 7.80% | 8.79% | 10.01% | -12.42% | -20.38% | -24.31% | -30.53% | -2.36% | -3.60% | -4.95% | -3.40% | -2.33% | -0.94% | 0.87% | 0.84% |
The profitability ratios for AeroVironment Inc exhibit notable variations over the specified period, reflecting changes in operational efficiency, asset utilization, and capital management.
Operating Return on Assets (Operating ROA):
The company experienced significant negative Operating ROA figures throughout most of 2022 and early 2023, with values ranging from -2.38% in January 2022 to as low as -3.94% in October 2022, indicating that operational income was generally insufficient to cover operating assets during this period. However, beginning mid-2023, there was a marked improvement, transitioning to positive territory with an inaugural reading of 3.36% in July 2023. This upward trend accelerated aggressively, reaching a peak of 10.24% in October 2023. Subsequently, the ratio demonstrated some decline but remained positive, with values around 8.06% in January 2024 and stabilizing around 4.95% in October 2024 before gradually decreasing to approximately 3.16% by January 2025.
Return on Assets (ROA):
AeroVironment’s ROA also followed a pattern from near or negative returns in 2022 and early 2023, with a significant downturn to -20.40% in April 2023, suggesting substantial challenges in generating net income relative to total assets during that period. Into late 2023, the data indicates a notable recovery; ROA shifted from deep negatives to positive figures, culminating at 7.89% in October 2023. This improvement persisted into early 2024, with ROA stabilized around 6.47% in January 2024 and maintaining modest positive values, which slightly declined over subsequent months but remained positive through April 2025.
Return on Total Capital:
This ratio mirrors the trends observed in ROA but emphasizes the efficiency of generating income from both debt and equity capital. Negative readings predominated throughout 2022 and parts of 2023, with values as low as -30.99% in April 2023, reflecting potential high leveraging costs or inefficient capital utilization. From October 2023 onwards, the ratio experienced a significant turnaround, attaining positive levels (12.98% in October 2023 and subsequent stable positive results), indicating improved capital efficiency. The ratio gradually declined after peak recovery but maintained a positive stance through April 2025, albeit at lower levels (around 3%).
Return on Equity (ROE):
ROE displayed a similar pattern, with negative values from 2022 through early 2023, reaching lows of approximately -30.53% in April 2023, indicative of poor profitability relative to shareholders’ equity. From late 2023 onward, ROE sharply improved, crossing into positive territory at 10.01% in October 2023. The positive trend persisted into 2024 and early 2025, with ROE figures stabilizing around 7-8%, suggesting that shareholders’ investments had begun generating more favorable returns.
Overall Analysis:
The seasonally adjusted and year-over-year data indicate a period of significant transition for AeroVironment Inc. after experiencing underperformance and losses in 2022 and early 2023. The company demonstrated a robust recovery starting mid to late 2023, with profitability ratios turning positive and showing substantial improvement through 2024. The data suggests enhanced operational efficiency, better asset and capital utilization, and improved returns on equity following the challenging period. Continued monitoring is recommended to confirm whether these positive trends persist and are sustainable in the longer term.