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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 = 8 or 9
Bad or low score = 0 or 1

AeroVironment Inc has an F-score of 7 indicating the company's financial situation is typical for a stable company.

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 (Jul14) TTM:Last Year (Jul13) TTM:
Net Income was 1.655 + 11.216 + 8.057 + -3.609 = $17.3 Mil.
Cash Flow from Operations was 3.503 + 13.145 + 25.391 + 14.368 = $56.4 Mil.
Revenue was 64.867 + 69.221 + 73.498 + 51.866 = $259.5 Mil.
Gross Profit was 23.878 + 27.052 + 30.138 + 14.054 = $95.1 Mil.
Average Total Assets from the begining of this year (Jul13)
to the end of this year (Jul14) was
(351.559 + 350.816 + 366.881 + 384.954 + 378.603) / 5 = $366.6 Mil.
Total Assets was $378.6 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $313.7 Mil.
Total Current Liabilities was $33.0 Mil.
Net Income was 8.738 + 3.869 + -0.795 + -7.21 = $4.6 Mil.

Revenue was 80.278 + 47.087 + 54.11 + 44.117 = $225.6 Mil.
Gross Profit was 35.636 + 19.673 + 17.722 + 12.545 = $85.6 Mil.
Average Total Assets from the begining of last year (Jul12)
to the end of last year (Jul13) was
(340.488 + 356.306 + 358.79 + 361.604 + 351.559) / 5 = $353.7 Mil.
Total Assets was $351.6 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $250.6 Mil.
Total Current Liabilities was $36.9 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

AeroVironment Inc's current net income (ttm) was 17.3. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

AeroVironment Inc's current cash flow from operations (ttm) was 56.4. ==> 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)/Average Total Assets from Jul13 to Jul14
=17.319/366.5626
=0.04724705

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jul12 to Jul13
=4.602/353.7494
=0.01300921

AeroVironment Inc's return on assets of this year was 0.04724705. AeroVironment Inc's return on assets of last year was 0.01300921. ==> 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 17.3. AeroVironment Inc's current cash flow from operations (ttm) was 56.4. ==> 56.4 > 17.3 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

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

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

Gearing (This Year: Jul14)=Long-Term Debt/Total Assets
=0/378.603
=0

Gearing (Last Year: Jul13)=Long-Term Debt/Total Assets
=0/351.559
=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: Jul14)=Total Current Assets/Total Current Liabilities
=313.731/33.049
=9.49290448

Current Ratio (Last Year: Jul13)=Total Current Assets/Total Current Liabilities
=250.565/36.853
=6.79903943

AeroVironment Inc's current ratio of this year was 9.49290448. AeroVironment Inc's current ratio of last year was 6.79903943. ==> This year's current ratio is higher. ==> Score 1.

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 22.8. AeroVironment Inc's number of shares in issue last year was 22.2. ==> 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
=95.122/259.452
=0.36662658

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=85.576/225.592
=0.37933969

AeroVironment Inc's gross margin of this year was 0.36662658. AeroVironment Inc's gross margin of last year was 0.37933969. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Jul13 to Jul14
=259.452/366.5626
=0.70779725

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jul12 to Jul13
=225.592/353.7494
=0.63771698

AeroVironment Inc's asset turnover of this year was 0.70779725. AeroVironment Inc's asset turnover of last year was 0.63771698. ==> 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+1+0+0+1
=7

Good or high score = 8 or 9

Bad or low score = 0 or 1

AeroVironment Inc has an F-score of 7 indicating the company's financial situation is typical for a stable company.


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, Altman Z-Score, Beneish M-Score


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 10100
Q4 01011
Q5 11111
Q6 10011
Q7 00000
Q8 01000
Q9 10100
F-score 65555

AeroVironment Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Q1 1111110111
Q2 1011111111
Q3 1000000011
Q4 0000111111
Q5 1111111111
Q6 0011101111
Q7 0100100000
Q8 0011000000
Q9 0000000011
F-score 4355644577
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