AeroVironment Inc (AVAV)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 43,619 | 33,001 | 48,640 | 54,982 | 51,656 | 63,450 | 71,460 | 79,470 | -98,580 | -117,096 | -139,667 | -168,230 | -14,649 | -22,368 | -30,081 | -20,627 | -13,988 | -5,628 | 5,286 | 5,056 |
| Total stockholders’ equity | US$ in thousands | 886,507 | 861,055 | 858,397 | 845,538 | 822,745 | 812,985 | 812,985 | 793,730 | 793,730 | 574,545 | 574,545 | 550,970 | 621,513 | 621,513 | 607,483 | 607,483 | 599,923 | 599,923 | 607,969 | 602,428 |
| 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% |
April 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $43,619K ÷ $886,507K
= 4.92%
The analysis of AeroVironment Inc.'s return on equity (ROE) over the specified period reveals a period of substantial volatility and subsequent recovery. Initially, in early 2022, the company's ROE was relatively modest, recorded at approximately 0.84% in January and slightly increasing to 0.87% by April, indicating marginal profitability relative to shareholders’ equity.
However, starting around mid-2022, the ROE experienced a significant decline, turning negative multiple times—from -0.94% in late July to as low as -4.95% by the end of October 2022—reflecting periods of losses relative to shareholders’ equity and potentially challenges in operational performance or external market conditions.
Throughout 2023, the negative trend persisted, with ROE reaching as low as approximately -30.53% in April, highlighting a period of substantial losses. The negative returns continued into mid-2023, albeit with some improvement, as the ROE remained significantly negative at -24.31% in July and around -20.38% at the end of July, suggesting ongoing difficulties in generating profitability.
A notable turnaround occurred towards the end of 2023, with the ROE shifting into positive territory—registering 10.01% in October 2023. This marked a reversal from prior losses, indicating an improvement in profitability and potentially enhanced operational efficiency or favorable market conditions.
Subsequent data points into early 2024 show continued positive ROE figures, with values of 8.79% in January and maintaining around 7.80% in January 2024. This trend suggests that AeroVironment Inc. has moved into a period of sustained profitability, although the ROE has stabilized at relatively modest levels compared to historical peaks.
Looking further into 2024 and early 2025, the ROE remains positive but exhibits a declining trend—from approximately 6.28% in April 2024 to 5.67% in October 2024, and then to around 3.83% in January 2025. Slight increases are observed in the subsequent months, reaching nearly 4.92% by April 2025. Overall, these figures indicate a pattern of modest profitability with some fluctuations, reflecting perhaps ongoing adjustments in the company's operations, market conditions, or strategic initiatives.
In summary, AeroVironment Inc.'s ROE has experienced a volatile trajectory over the examined period, characterized by significant negative returns during mid-2022 through mid-2023, followed by a notable recovery into positive territory and stabilization at moderate levels through late 2024 and early 2025. This pattern underscores a company that faced considerable challenges but has managed to regain a measure of profitability, with ongoing variability likely influenced by internal and external factors affecting operational performance.
Peer comparison
Apr 30, 2025