Switch to:
Aircastle Ltd (NYSE:AYR)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

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

Aircastle Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

AYR' s 10-Year Piotroski F-Score Range
Min: 4   Max: 8
Current: 5

4
8

During the past 11 years, the highest Piotroski F-Score of Aircastle Ltd was 8. The lowest was 4. And the median was 6.


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 (Jun15) TTM:Last Year (Jun14) TTM:
Net Income was 19.151 + 72.764 + 43.269 + 41.808 = $177.0 Mil.
Cash Flow from Operations was 151.97 + 92.811 + 132.928 + 116.678 = $494.4 Mil.
Revenue was 177.596 + 238.257 + 194.296 + 204.565 = $814.7 Mil.
Gross Profit was 176.883 + 236.24 + 191.353 + 200.902 = $805.4 Mil.
Average Total Assets from the begining of this year (Jun14)
to the end of this year (Jun15) was
(6211.567 + 6167.244 + 6227.013 + 6524.366 + 6803.675) / 5 = $6386.773 Mil.
Total Assets at the begining of this year (Jun14) was $6,211.6 Mil.
Long-Term Debt was $4,277.4 Mil.
Total Current Assets was $474.8 Mil.
Total Current Liabilities was $212.8 Mil.
Net Income was -74.558 + 48.421 + 5.777 + 3.136 = $-17.2 Mil.

Revenue was 170.09 + 191.988 + 176.603 + 226.146 = $764.8 Mil.
Gross Profit was 168.176 + 189.821 + 174.74 + 223.5 = $756.2 Mil.
Average Total Assets from the begining of last year (Jun13)
to the end of last year (Jun14) was
(5684.343 + 5805.48 + 6251.893 + 6778.265 + 6211.567) / 5 = $6146.3096 Mil.
Total Assets at the begining of last year (Jun13) was $5,684.3 Mil.
Long-Term Debt was $3,752.5 Mil.
Total Current Assets was $359.9 Mil.
Total Current Liabilities was $183.9 Mil.

Profitability

Question 1. 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.

Aircastle Ltd's current net income (TTM) was 177.0. ==> Positive ==> Score 1.

Question 2. 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.

Aircastle Ltd's current cash flow from operations (TTM) was 494.4. ==> Positive ==> Score 1.

Question 3. 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 (Jun14)
=176.992/6211.567
=0.02849394

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=-17.224/5684.343
=-0.00303008

Aircastle Ltd's return on assets of this year was 0.02849394. Aircastle Ltd's return on assets of last year was -0.00303008. ==> This year is higher. ==> Score 1.

Question 4. 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.

Aircastle Ltd's current net income (TTM) was 177.0. Aircastle Ltd's current cash flow from operations (TTM) was 494.4. ==> 494.4 > 177.0 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. 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: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=4277.374/6386.773
=0.66972382

Gearing (Last Year: Jun14)=Long-Term Debt/Average Total Assets from Jun13 to Jun14
=3752.493/6146.3096
=0.61052782

Aircastle Ltd's gearing of this year was 0.66972382. Aircastle Ltd's gearing of last year was 0.61052782. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Jun15)=Total Current Assets/Total Current Liabilities
=474.791/212.83
=2.23084622

Current Ratio (Last Year: Jun14)=Total Current Assets/Total Current Liabilities
=359.931/183.89
=1.95731687

Aircastle Ltd's current ratio of this year was 2.23084622. Aircastle Ltd's current ratio of last year was 1.95731687. ==> This year's current ratio is higher. ==> Score 1.

Question 7. 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.

Aircastle Ltd's number of shares in issue this year was 80.6. Aircastle Ltd's number of shares in issue last year was 80.4. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. 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
=805.378/814.714
=0.98854076

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=756.237/764.827
=0.9887687

Aircastle Ltd's gross margin of this year was 0.98854076. Aircastle Ltd's gross margin of last year was 0.9887687. ==> Last year's gross margin is higher ==> Score 0.

Question 9. 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 (Jun14)
=814.714/6211.567
=0.13116078

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun13)
=764.827/5684.343
=0.13454976

Aircastle Ltd's asset turnover of this year was 0.13116078. Aircastle Ltd's asset turnover of last year was 0.13454976. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+0+0
=5

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

Aircastle Ltd has an F-score of 5 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


Historical Data

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

Aircastle Ltd Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Question 1 1111111
Question 2 1111111
Question 3 0001001
Question 4 1111111
Question 5 1000011
Question 6 0111110
Question 7 0001100
Question 8 0010111
Question 9 0101101
F-score 4557767

Aircastle Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Question 1 1111101111
Question 2 1111111111
Question 3 0000001111
Question 4 1111111111
Question 5 1111000110
Question 6 1111111001
Question 7 1100000000
Question 8 0011111110
Question 9 1000011110
F-score 7666557775
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK