AeroVironment Inc (AVAV)
Return on assets (ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 43,619 | 59,666 | -173,714 | -8,774 | 33,826 |
| Total assets | US$ in thousands | 1,120,570 | 1,015,860 | 824,577 | 914,200 | 928,566 |
| ROA | 3.89% | 5.87% | -21.07% | -0.96% | 3.64% |
April 30, 2025 calculation
ROA = Net income ÷ Total assets
= $43,619K ÷ $1,120,570K
= 3.89%
The analysis of AeroVironment Inc.'s return on assets (ROA) over the specified periods reveals notable fluctuations indicating significant changes in the company's profitability relative to its total assets. As of April 30, 2021, the ROA stood at 3.64%, suggesting a modestly efficient utilization of assets to generate profit. However, in the subsequent year ending April 30, 2022, the ROA declined sharply to -0.96%, signaling a reversal from profitability to a marginally negative return, which could reflect increased expenses, lower revenues, or less efficient asset utilization during that period. The situation worsened by April 30, 2023, with the ROA plunging to -21.07%, representing a substantial deterioration in asset efficiency and profitability, possibly indicative of operational challenges, asset impairments, or industry-specific headwinds.
Moving forward, the ROA shows signs of recovery. By April 30, 2024, it increased to 5.87%, crossing into positive territory, which suggests an improvement in the company’s ability to generate profit attributable to its assets. This positive trend continues into April 30, 2025, with an ROA of 3.89%, though it remains below the levels observed in 2021. Overall, AeroVironment Inc.'s ROA exhibits a cycle of decline culminating in significant losses during 2023, followed by a partial recovery in subsequent years. The fluctuations indicate periods of operational difficulty and subsequent improvements, but the company’s asset efficiency and profitability remain areas requiring ongoing attention and strategic management to sustain positive returns.
Peer comparison
Apr 30, 2025