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AAR Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a 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

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

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: 1   Med: 6   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of AAR was 9. The lowest was 1. 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 Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 3.00 6.00 7.00

AAR Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Piotroski F-Score 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 6.00 7.00 7.00 7.00 7.00

Competitive Comparison

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 Piotroski F-Score Distribution

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 (May22) TTM:Last Year (May21) TTM:
Net Income was 11.5 + 20.8 + 22.5 + 23.9 = $79 Mil.
Cash Flow from Operations was 2.9 + 16.3 + 15.9 + 40.1 = $75 Mil.
Revenue was 455.1 + 436.6 + 452.2 + 476.1 = $1,820 Mil.
Gross Profit was 64.6 + 78.4 + 80.4 + 89.8 = $313 Mil.
Average Total Assets from the begining of this year (May21)
to the end of this year (May22) was
(1539.7 + 1535.7 + 1529.6 + 1552 + 1573.9) / 5 = $1546.18 Mil.
Total Assets at the begining of this year (May21) was $1,540 Mil.
Long-Term Debt & Capital Lease Obligation was $156 Mil.
Total Current Assets was $1,007 Mil.
Total Current Liabilities was $348 Mil.
Net Income was -14.5 + 8.2 + 28.1 + 14 = $36 Mil.

Revenue was 400.8 + 403.6 + 410.3 + 437.6 = $1,652 Mil.
Gross Profit was 48.6 + 69.5 + 86 + 71.8 = $276 Mil.
Average Total Assets from the begining of last year (May20)
to the end of last year (May21) was
(2079 + 1713.8 + 1669.3 + 1642.8 + 1539.7) / 5 = $1728.92 Mil.
Total Assets at the begining of last year (May20) was $2,079 Mil.
Long-Term Debt & Capital Lease Obligation was $194 Mil.
Total Current Assets was $937 Mil.
Total Current Liabilities was $337 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 79. ==> 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.

AAR's current Cash Flow from Operations (TTM) was 75. ==> 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 (May21)
=78.7/1539.7
=0.05111385

ROA (Last Year)=Net Income/Total Assets (May20)
=35.8/2079
=0.01721982

AAR's return on assets of this year was 0.05111385. AAR's return on assets of last year was 0.01721982. ==> 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.

AAR's current Net Income (TTM) was 79. AAR's current Cash Flow from Operations (TTM) was 75. ==> 75 <= 79 ==> CFROA <= ROA ==> Score 0.

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: May22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May21 to May22
=156.3/1546.18
=0.10108784

Gearing (Last Year: May21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May20 to May21
=193.6/1728.92
=0.11197742

AAR's gearing of this year was 0.10108784. AAR's gearing of last year was 0.11197742. ==> This year is lower or equal to last year. ==> Score 1.

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: May22)=Total Current Assets/Total Current Liabilities
=1007.2/348.2
=2.89259047

Current Ratio (Last Year: May21)=Total Current Assets/Total Current Liabilities
=937/336.8
=2.78206651

AAR's current ratio of this year was 2.89259047. AAR's current ratio of last year was 2.78206651. ==> 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.

AAR's number of shares in issue this year was 36.6. AAR's number of shares in issue last year was 35.6. ==> 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
=313.2/1820
=0.17208791

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=275.9/1652.3
=0.16697936

AAR's gross margin of this year was 0.17208791. AAR's gross margin of last year was 0.16697936. ==> This year's gross margin is higher. ==> Score 1.

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 (May21)
=1820/1539.7
=1.18204845

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (May20)
=1652.3/2079
=0.79475709

AAR's asset turnover of this year was 1.18204845. AAR's asset turnover of last year was 0.79475709. ==> 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
=1+1+1+0+1+1+0+1+1
=7

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

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

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

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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