AeroVironment Inc (AVAV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 886,507 | 822,745 | 550,970 | 607,969 | 612,093 |
| ROE | 4.92% | 7.25% | -31.53% | -1.44% | 5.53% |
April 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $43,619K ÷ $886,507K
= 4.92%
The return on equity (ROE) of AeroVironment Inc. exhibits significant fluctuations over the analyzed period from April 2021 through April 2025. As of April 30, 2021, the company's ROE stood at 5.53%, indicating a modest but positive return generated on shareholders' equity. This figure declined markedly in the subsequent year, reaching a negative -1.44% as of April 30, 2022, signaling a deterioration in profitability relative to shareholders’ equity and potentially reflecting operational challenges or increased expenses.
The downward trend intensified by April 30, 2023, with the ROE plunging to -31.53%. Such a substantial negative value suggests a period of significant losses or non-recurring charges that heavily eroded shareholders' equity, adversely impacting investor confidence and financial performance. This level of negative ROE indicates that the company was not generating sufficient profits relative to its equity base, possibly due to operational setbacks, restructuring costs, or industry-specific headwinds.
However, there is a marked improvement observed in the subsequent year, where the ROE recovers to 7.25% as of April 30, 2024. This positive shift suggests a turnaround in profitability and operational efficiency, enabling the company to generate returns on equity that surpass the prior negative levels. The positive ROE indicates that AeroVironment Inc. managed to restore its profitability trajectory, perhaps through strategic adjustments, product development, or market expansion.
Looking further ahead, into April 2025, the ROE is projected at 4.92%. Although slightly lower than the peak in April 2024, the figure remains positive, reflecting continued, albeit moderated, profitability on shareholders' equity. This stability suggests that the company has moved past its most difficult period and is maintaining a positive earnings base relative to its equity.
In summary, AeroVironment Inc.’s ROE has experienced considerable volatility over the observed years, characterized by a period of negative profitability in 2022 and 2023, followed by a notable recovery in 2024 and sustained positive performance into 2025. The trends underscore a significant turnaround in financial performance, with recent figures indicating improvements in operational efficiency and profitability, although the earlier negative values highlight past challenges faced by the company.
Peer comparison
Apr 30, 2025