GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » AAR Corp (NYSE:AIR) » Definitions » Piotroski F-Score

AAR (AIR) Piotroski F-Score : 3 (As of Jul. 06, 2025)


View and export this data going back to 1972. Start your Free Trial

What is AAR Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

AAR has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for AAR's Piotroski F-Score or its related term are showing as below:

AIR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 3

During the past 13 years, the highest Piotroski F-Score of AAR was 8. The lowest was 2. And the median was 6.


AAR Piotroski F-Score Historical Data

The historical data trend for AAR's Piotroski F-Score 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 Piotroski F-Score Chart

AAR Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 6.00 7.00 7.00 4.00

AAR Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Piotroski F-Score Get a 7-Day Free Trial 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 5.00 4.00 3.00 5.00 3.00

Competitive Comparison of AAR's Piotroski F-Score

For the Aerospace & Defense subindustry, AAR's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, AAR's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where AAR's Piotroski F-Score falls into.


;
;

How is the Piotroski F-Score calculated?

* 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.

This Year (Feb25) TTM:Last Year (Feb24) TTM:
Net Income was 9.1 + 18 + -30.6 + -8.9 = $-12 Mil.
Cash Flow from Operations was 24.5 + -18.6 + 22 + -18.7 = $9 Mil.
Revenue was 656.5 + 661.7 + 686.1 + 678.2 = $2,683 Mil.
Gross Profit was 127.3 + 117.2 + 128.6 + 131.7 = $505 Mil.
Average Total Assets from the begining of this year (Feb24)
to the end of this year (Feb25) was
(2021.8 + 2770 + 2783.3 + 2849.3 + 2859.1) / 5 = $2656.7 Mil.
Total Assets at the begining of this year (Feb24) was $2,022 Mil.
Long-Term Debt & Capital Lease Obligation was $1,090 Mil.
Total Current Assets was $1,535 Mil.
Total Current Liabilities was $545 Mil.
Net Income was 23.2 + -0.6 + 23.8 + 14 = $60 Mil.

Revenue was 553.3 + 549.7 + 545.4 + 567.3 = $2,216 Mil.
Gross Profit was 108.1 + 101.3 + 103.4 + 110.3 = $423 Mil.
Average Total Assets from the begining of last year (Feb23)
to the end of last year (Feb24) was
(1673.3 + 1833.1 + 1954.4 + 1965.6 + 2021.8) / 5 = $1889.64 Mil.
Total Assets at the begining of last year (Feb23) was $1,673 Mil.
Long-Term Debt & Capital Lease Obligation was $348 Mil.
Total Current Assets was $1,241 Mil.
Total Current Liabilities was $428 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

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.

AAR's current Net Income (TTM) was -12. ==> Negative ==> Score 0.

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.

AAR's current Cash Flow from Operations (TTM) was 9. ==> 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/Total Assets (Feb24)
=-12.4/2021.8
=-0.00613315

ROA (Last Year)=Net Income/Total Assets (Feb23)
=60.4/1673.3
=0.03609634

AAR's return on assets of this year was -0.00613315. AAR's return on assets of last year was 0.03609634. ==> Last year is higher ==> Score 0.

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.

AAR's current Net Income (TTM) was -12. AAR's current Cash Flow from Operations (TTM) was 9. ==> 9 > -12 ==> 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: Feb25)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Feb24 to Feb25
=1089.9/2656.7
=0.41024579

Gearing (Last Year: Feb24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Feb23 to Feb24
=347.7/1889.64
=0.1840033

AAR's gearing of this year was 0.41024579. AAR's gearing of last year was 0.1840033. ==> 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: Feb25)=Total Current Assets/Total Current Liabilities
=1534.8/545.2
=2.81511372

Current Ratio (Last Year: Feb24)=Total Current Assets/Total Current Liabilities
=1240.7/428.2
=2.89747781

AAR's current ratio of this year was 2.81511372. AAR's current ratio of last year was 2.89747781. ==> Last year's current ratio is higher ==> Score 0.

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.

AAR's number of shares in issue this year was 35.4. AAR's number of shares in issue last year was 35.2. ==> 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
=504.8/2682.5
=0.18818267

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=423.1/2215.7
=0.19095545

AAR's gross margin of this year was 0.18818267. AAR's gross margin of last year was 0.19095545. ==> 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/Total Assets at the Beginning of This Year (Feb24)
=2682.5/2021.8
=1.32678801

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Feb23)
=2215.7/1673.3
=1.32414988

AAR's asset turnover of this year was 1.32678801. AAR's asset turnover of last year was 1.32414988. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

AAR has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

AAR  (NYSE:AIR) Piotroski F-Score 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.


AAR Piotroski F-Score Related Terms

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


AAR Business Description

Traded in Other Exchanges
Address
1100 N. 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 three segments namely Parts Supply, Repair & Engineering, and Integrated Solutions. The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts. Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services. Integrated Solutions segment majorly consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense and foreign governments, flight hour component inventory and repair programs for commercial airlines.
Executives
Holmes John Mcclain Iii officer: Group Vice President 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Christopher A. Jessup officer: Vice President-CCO 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Jessica A. Garascia officer: Vice President and Secretary 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Sean M. Gillen officer: VP-CFO 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Eric Pachapa officer: VP, Controller and CAO 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Peter Pace director C/O AAR CORP., 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Billy Nolen director 1100 N WOOD DALE RD, WOOD DALE IL 60191
Tracey Patterson officer: Sr. VP & Chief HR Officer 1100 N WOOD DALE RD, WOOD DALE IL 60191
Jennifer L Vogel director C/O AAR CORP., 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
John W Dietrich director
Anthony Anderson director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Gilbertson H John Jr director 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
David P Storch director, officer: President, CEO & Director C/O AAR CORP, 1111 NICHOLAS BLVD, 1111 NICHOLAS BLVD IL 60007
Michael Ross Boyce director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Ellen M. Lord director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191