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AeroVironment Inc (NAS:AVAV)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

AeroVironment Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

AVAV' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 7

3
8

During the past 12 years, the highest Piotroski F-Score of AeroVironment Inc was 8. The lowest was 3. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Net Income was 11.216 + 8.057 + -3.609 + -2.901 = $12.8 Mil.
Cash Flow from Operations was 13.145 + 25.391 + 14.368 + -4.407 = $48.5 Mil.
Revenue was 69.221 + 73.498 + 51.866 + 52.664 = $247.2 Mil.
Gross Profit was 27.052 + 30.138 + 14.054 + 17.871 = $89.1 Mil.
Average Total Assets from the begining of this year (Oct13)
to the end of this year (Oct14) was
(350.816 + 366.881 + 384.954 + 378.603 + 386.129) / 5 = $373.4766 Mil.
Total Assets at the begining of this year (Oct13) was $350.8 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $311.6 Mil.
Total Current Liabilities was $43.2 Mil.
Net Income was 3.869 + -0.795 + -7.21 + 1.655 = $-2.5 Mil.

Revenue was 47.087 + 54.11 + 44.117 + 64.867 = $210.2 Mil.
Gross Profit was 19.673 + 17.722 + 12.545 + 23.878 = $73.8 Mil.
Average Total Assets from the begining of last year (Oct12)
to the end of last year (Oct13) was
(356.306 + 358.79 + 361.604 + 351.559 + 350.816) / 5 = $355.815 Mil.
Total Assets at the begining of last year (Oct12) was $356.3 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $265.8 Mil.
Total Current Liabilities was $33.3 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

AeroVironment Inc's current net income (TTM) was 12.8. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

AeroVironment Inc's current cash flow from operations (TTM) was 48.5. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Oct13)
=12.763/350.816
=0.03638089

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=-2.481/356.306
=-0.00696312

AeroVironment Inc's return on assets of this year was 0.03638089. AeroVironment Inc's return on assets of last year was -0.00696312. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

AeroVironment Inc's current net income (TTM) was 12.8. AeroVironment Inc's current cash flow from operations (TTM) was 48.5. ==> 48.5 > 12.8 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct14)=Long-Term Debt/Average Total Assets from Oct13 to Oct14
=0/373.4766
=0

Gearing (Last Year: Oct13)=Long-Term Debt/Average Total Assets from Oct12 to Oct13
=0/355.815
=0

AeroVironment Inc's gearing of this year was 0. AeroVironment Inc's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Oct14)=Total Current Assets/Total Current Liabilities
=311.567/43.241
=7.20536065

Current Ratio (Last Year: Oct13)=Total Current Assets/Total Current Liabilities
=265.763/33.309
=7.97871446

AeroVironment Inc's current ratio of this year was 7.20536065. AeroVironment Inc's current ratio of last year was 7.97871446. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

AeroVironment Inc's number of shares in issue this year was 22.9. AeroVironment Inc's number of shares in issue last year was 22.7. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=89.115/247.249
=0.36042613

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=73.818/210.181
=0.35121157

AeroVironment Inc's gross margin of this year was 0.36042613. AeroVironment Inc's gross margin of last year was 0.35121157. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Oct13)
=247.249/350.816
=0.70478256

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Oct12)
=210.181/356.306
=0.58988903

AeroVironment Inc's asset turnover of this year was 0.70478256. AeroVironment Inc's asset turnover of last year was 0.58988903. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+0+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

AeroVironment Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

AeroVironment Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
Q1 11111111
Q2 11111111
Q3 10001001
Q4 00111011
Q5 11111111
Q6 11000011
Q7 00000000
Q8 00011000
Q9 00001001
F-score 54457357

AeroVironment Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Q1 1111101111
Q2 0111111111
Q3 0000000111
Q4 0001111111
Q5 1111111111
Q6 0111011110
Q7 1001000000
Q8 0110000001
Q9 0000000111
F-score 3556445777
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