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Aon Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

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

Aon has an F-score of 4 indicating the company's financial situation is typical for a stable company.

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

AON' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 9
Current: 4

During the past 13 years, the highest Piotroski F-Score of Aon was 9. The lowest was 1. And the median was 5.


Aon Piotroski F-Score Historical Data

The historical data trend for Aon'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.

Aon Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 7.00 8.00 5.00

Aon Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 7.00 4.00 5.00 5.00 4.00

Competitive Comparison

For the Insurance Brokers subindustry, Aon'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.

   

Aon Piotroski F-Score Distribution

For the Insurance industry and Financial Services sector, Aon's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Aon'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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was -900 + 863 + 1023 + 501 = $1,487 Mil.
Cash Flow from Operations was -94 + 931 + 463 + 668 = $1,968 Mil.
Revenue was 2702 + 3080 + 3670 + 2983 = $12,435 Mil.
Gross Profit was 867 + 1524 + 1903 + 1344 = $5,638 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(34580 + 31816 + 31917 + 33491 + 34720) / 5 = $33304.8 Mil.
Total Assets at the begining of this year (Jun21) was $34,580 Mil.
Long-Term Debt & Capital Lease Obligation was $10,394 Mil.
Total Current Assets was $22,167 Mil.
Total Current Liabilities was $21,077 Mil.
Net Income was 275 + 524 + 913 + 379 = $2,091 Mil.

Revenue was 2385 + 2965 + 3525 + 2886 = $11,761 Mil.
Gross Profit was 998 + 1330 + 1806 + 1258 = $5,392 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(31995 + 31359 + 32114 + 32175 + 34580) / 5 = $32444.6 Mil.
Total Assets at the begining of last year (Jun20) was $31,995 Mil.
Long-Term Debt & Capital Lease Obligation was $8,168 Mil.
Total Current Assets was $21,276 Mil.
Total Current Liabilities was $18,927 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.

Aon's current Net Income (TTM) was 1,487. ==> 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.

Aon's current Cash Flow from Operations (TTM) was 1,968. ==> 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 (Jun21)
=1487/34580
=0.04300174

ROA (Last Year)=Net Income/Total Assets (Jun20)
=2091/31995
=0.06535396

Aon's return on assets of this year was 0.04300174. Aon's return on assets of last year was 0.06535396. ==> 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.

Aon's current Net Income (TTM) was 1,487. Aon's current Cash Flow from Operations (TTM) was 1,968. ==> 1,968 > 1,487 ==> 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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=10394/33304.8
=0.31208715

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=8168/32444.6
=0.25175222

Aon's gearing of this year was 0.31208715. Aon's gearing of last year was 0.25175222. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=22167/21077
=1.05171514

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=21276/18927
=1.12410842

Aon's current ratio of this year was 1.05171514. Aon's current ratio of last year was 1.12410842. ==> 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.

Aon's number of shares in issue this year was 214.7. Aon's number of shares in issue last year was 228. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=5638/12435
=0.45339767

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5392/11761
=0.45846442

Aon's gross margin of this year was 0.45339767. Aon's gross margin of last year was 0.45846442. ==> 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 (Jun21)
=12435/34580
=0.35960093

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=11761/31995
=0.36758869

Aon's asset turnover of this year was 0.35960093. Aon's asset turnover of last year was 0.36758869. ==> 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+0+1+0+0+1+0+0
=4

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

Aon has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Aon  (NYSE:AON) 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.


Aon Piotroski F-Score Related Terms

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


Aon Business Description

Aon logo
Traded in Other Exchanges
Address
James Joyce Street, Metropolitan Building, Dublin 1, IRL, D01 K0Y8
Aon is a leading global provider of insurance and reinsurance brokerage and human resource solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in 120 countries around the world.
Executives
Slyfield Jillian officer: Chief Innovation Officer 200 E RANDOLPH ST. CHICAGO IL 60601
Platt James officer: Chief Operating Officer THE LEADENHALL BUILDING 122 LEADENHALL ST. LONDON X0 EC3V 4AN
Spruell Byron director 200 EAST RANDOLPH ST. CHICAGO IL 60601
Stevens Lisa officer: Chief People Officer 200 EAST RANDOLPH CHICAGO IL 60601
Weitz Andy officer: Chief Marketing Officer 200 EAST RANDOLPH ST. CHICAGO IL 60601
Zeidel Darren officer: General Counsel 200 EAST RANDOLPH ST. CHICAGO IL 60640
Campbell Jeffrey C director 4333 AMON CARTER BLVD FORT WORTH TX 76155
Neller Michael officer: Principal Accounting Officer 200 EAST RANDOLPH ST. CHICAGO IL 60601
Zern John officer: CEO, Global Health & Benefits 200 E. RANDOLPH ST. CHICAGO IL 60601
Grace Caroline officer: CEO, Global Retirement & Inves 200 E. RANDOLPH ST. CHICAGO IL 60601
Bruno John G officer: Executive Vice President, CIO
Andersen Eric officer: CEO, Aon Benfield 200 EAST RANDOLPH ST. CHICAGO IL 60601
Cai Jin-yong director 200 EAST RANDOLPH ST. CHICAGO IL 60601
Goland Anthony R officer: EVP and CHRO C/O AON LAW DEPARTMENT 200 EAST RANDOLPH ST CHICAGO IL 60601
Leng James W director C/O AON PLC 8 DEVONSHIRE SQUARE LONDON X0 EC2M4PL

Aon Headlines

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