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AAR ROE %

: 9.24% (As of May. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. AAR's annualized net income attributable to common stockholders for the quarter that ended in May. 2022 was $95 Mil. AAR's average Total Stockholders Equity over the quarter that ended in May. 2022 was $1,026 Mil. Therefore, AAR's annualized ROE % for the quarter that ended in May. 2022 was 9.24%.

The historical rank and industry rank for AAR's ROE % or its related term are showing as below:

AIR' s ROE % Range Over the Past 10 Years
Min: 0.48   Med: 4.65   Max: 7.78
Current: 7.78

During the past 13 years, AAR's highest ROE % was 7.78%. The lowest was 0.48%. And the median was 4.65%.

AIR's ROE % is ranked better than
58.94% of 263 companies
in the Aerospace & Defense industry
Industry Median: 4.91 vs AIR: 7.78

AAR ROE % Historical Data

The historical data trend for AAR's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

AAR Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.62 0.77 0.48 3.77 7.78

AAR Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.79 4.65 8.30 8.81 9.24

Competitive Comparison

For the Aerospace & Defense subindustry, AAR's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

AAR ROE % Distribution

For the Aerospace & Defense industry and Industrials sector, AAR's ROE % distribution charts can be found below:

* The bar in red indicates where AAR's ROE % falls into.



AAR ROE % Calculation

AAR's annualized ROE % for the fiscal year that ended in May. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: May. 2022 )/( (Total Stockholders Equity (A: May. 2021 )+Total Stockholders Equity (A: May. 2022 ))/ count )
=78.1/( (974.4+1034.5)/ 2 )
=78.1/1004.45
=7.78 %

AAR's annualized ROE % for the quarter that ended in May. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: May. 2022 )/( (Total Stockholders Equity (Q: Feb. 2022 )+Total Stockholders Equity (Q: May. 2022 ))/ count )
=94.8/( (1017.7+1034.5)/ 2 )
=94.8/1026.1
=9.24 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (May. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


AAR  (NYSE:AIR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: May. 2022 )
=Net Income/Total Stockholders Equity
=95.6/1026.1
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(95.6 / 1904.4)*(1904.4 / 1562.95)*(1562.95 / 1026.1)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.02 %*1.2185*1.5232
=ROA %*Equity Multiplier
=6.12 %*1.5232
=9.32 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: May. 2022 )
=Net Income/Total Stockholders Equity
=95.6/1026.1
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (95.6 / 122) * (122 / 130.4) * (130.4 / 1904.4) * (1904.4 / 1562.95) * (1562.95 / 1026.1)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7836 * 0.9356 * 6.85 % * 1.2185 * 1.5232
=9.32 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (May. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (May. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


AAR ROE % Related Terms

Thank you for viewing the detailed overview of AAR's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


AAR Business Description

AAR logo
Traded in Other Exchanges
Address
1100 North Wood Dale Road, One AAR Place, Wood Dale, IL, USA, 60191
AAR Corp is engaged in providing products and services to aviation, government, and defense market. It operates in two segments namely Aviation Services and Expeditionary Services. The Aviation Services segment consists of aftermarket support and services businesses that provide spares and maintenance support for aircraft operated by it's commercial and government/defense customers. The Expeditionary Services segment consists of businesses that provide products and services supporting the movement of equipment and personnel by the U.S. Department of Defense, foreign governments, and non-governmental organizations. It generates a majority of its revenue from the Aviation Services Segment.
Executives
Lord Ellen M. director 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Leduc Robert F director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Gilbertson H John Jr director 3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515
Mcnabb Duncan J. director C/O ATLAS AIR WORLDWIDE HOLDINGS, INC. 2000 WESTCHESTER AVENUE PURCHASE NY 10577
Garascia Jessica A. officer: Vice President and Secretary 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Jessup Christopher A. officer: Vice President-CCO 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Gillen Sean M. officer: VP-CFO 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Milligan Michael D officer: Chief Financial Officer 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Pachapa Eric officer: VP, Controller and CAO 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Vogel Jennifer L director C/O AAR CORP. 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Fortson John C. officer: VP, CFO & Treasurer 5255 VIRGINIA AVE NORTH CHARLESTON SC 29406
Anderson Anthony director 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Holmes John Mcclain Iii officer: Group Vice President 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Pace Peter director C/O AAR CORP. 1100 N. WOOD DALE ROAD WOOD DALE IL 60191
Martinez Randy J officer: Group Vice President HLH BUILDING 101 WORLD DRIVE PEACHTREE CITY GA 30269

AAR Headlines

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