AAR Net Income vs Operating Income Analysis
AIR Stock | USD 63.03 1.16 1.87% |
AAR Corp financial indicator trend analysis is way more than just evaluating AAR Corp prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether AAR Corp is a good investment. Please check the relationship between AAR Corp Net Income and its Operating Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AAR Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in AAR Stock, please use our How to Invest in AAR Corp guide.
Net Income vs Operating Income
Net Income vs Operating Income Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of AAR Corp Net Income account and Operating Income. At this time, the significance of the direction appears to have very strong relationship.
The correlation between AAR Corp's Net Income and Operating Income is 0.82. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Operating Income in the same time period over historical financial statements of AAR Corp, assuming nothing else is changed. The correlation between historical values of AAR Corp's Net Income and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of AAR Corp are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Net Income i.e., AAR Corp's Net Income and Operating Income go up and down completely randomly.
Correlation Coefficient | 0.82 |
Relationship Direction | Positive |
Relationship Strength | Strong |
Net Income
Net income is one of the most important fundamental items in finance. It plays a large role in AAR Corp financial statement analysis. It represents the amount of money remaining after all of AAR Corp operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.Operating Income
Operating Income is the amount of profit realized from AAR Corp operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of AAR Corp is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Most indicators from AAR Corp's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into AAR Corp current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AAR Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in AAR Stock, please use our How to Invest in AAR Corp guide.At this time, AAR Corp's Selling General Administrative is relatively stable compared to the past year. As of 04/19/2024, Discontinued Operations is likely to grow to about 378 K, while Enterprise Value Over EBITDA is likely to drop 8.27.
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 313.2M | 370.1M | 425.6M | 446.9M | Total Revenue | 1.8B | 2.0B | 2.3B | 1.2B |
AAR Corp fundamental ratios Correlations
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AAR Corp Account Relationship Matchups
High Positive Relationship
High Negative Relationship
AAR Corp fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 2.1B | 1.5B | 1.6B | 1.8B | 2.1B | 1.1B | |
Short Long Term Debt Total | 670.9M | 193.6M | 156.3M | 317.9M | 365.6M | 279.0M | |
Other Current Liab | 191.5M | 209.6M | 160.2M | 193M | 222.0M | 233.0M | |
Total Current Liabilities | 383.1M | 336.8M | 348.2M | 351.5M | 404.2M | 224.5M | |
Total Stockholder Equity | 902.6M | 974.4M | 1.0B | 1.1B | 1.3B | 1.3B | |
Property Plant And Equipment Net | 225.4M | 195.8M | 182.6M | 189.8M | 218.3M | 148.9M | |
Net Debt | 266.2M | 141.8M | 102.8M | 249.5M | 286.9M | 225.0M | |
Retained Earnings | 706M | 741.7M | 820.4M | 910.6M | 1.0B | 1.1B | |
Cash | 404.7M | 51.8M | 53.5M | 68.4M | 78.7M | 54.0M | |
Non Current Assets Total | 640.3M | 602.7M | 566.7M | 735.2M | 845.5M | 439.9M | |
Non Currrent Assets Other | 293.2M | 283.1M | 205.9M | 305.9M | 351.8M | 247.9M | |
Cash And Short Term Investments | 404.7M | 51.8M | 53.5M | 68.4M | 78.7M | 54.0M | |
Net Receivables | 221.2M | 238.6M | 287.6M | 328.2M | 377.4M | 396.3M | |
Common Stock Shares Outstanding | 35M | 35.3M | 36M | 35.1M | 40.4M | 35.3M | |
Liabilities And Stockholders Equity | 2.1B | 1.5B | 1.6B | 1.8B | 2.1B | 1.1B | |
Non Current Liabilities Total | 793.3M | 228.5M | 191.2M | 382.5M | 439.9M | 337.3M | |
Inventory | 623.1M | 540.6M | 550.5M | 574.1M | 660.2M | 693.2M | |
Other Current Assets | 146.8M | 78.1M | 94M | 100.3M | 115.3M | 169.2M | |
Other Stockholder Equity | 195.9M | 205.7M | 188.4M | 166.7M | 191.7M | 210.0M | |
Property Plant And Equipment Gross | 225.4M | 195.8M | 367.9M | 394.9M | 454.1M | 476.8M | |
Total Current Assets | 1.4B | 937M | 1.0B | 1.1B | 1.3B | 692.8M | |
Accumulated Other Comprehensive Income | (44.6M) | (18.3M) | (19.6M) | (23.5M) | (21.2M) | (22.2M) | |
Short Term Debt | (88M) | (5.4M) | 11.1M | (19.7M) | (17.7M) | (16.8M) | |
Intangible Assets | 6M | 4.5M | 3.3M | 63.7M | 73.3M | 65.6M | |
Accounts Payable | 191.6M | 127.2M | 156.4M | 158.5M | 182.3M | 118.9M | |
Current Deferred Revenue | 88M | 5.4M | 20.5M | 19.7M | 22.7M | 36.2M | |
Good Will | 115.7M | 119.3M | 116.4M | 175.8M | 202.2M | 104.8M | |
Other Liab | 112.1M | 122.4M | 34.9M | 64.6M | 74.3M | 53.8M | |
Other Assets | 59.6M | 55.5M | 55.6M | 72.3M | 83.1M | 91.1M | |
Long Term Debt | 600M | 133.7M | 98.9M | 269.7M | 310.2M | 320.6M | |
Treasury Stock | (280.7M) | (287.7M) | (282.7M) | (274.1M) | (246.7M) | (234.4M) | |
Property Plant Equipment | 135.7M | 195.8M | 109.6M | 126.1M | 113.5M | 164.6M | |
Net Tangible Assets | 780.9M | 825.6M | 914.8M | 859.6M | 988.5M | 783.6M | |
Retained Earnings Total Equity | 706M | 741.7M | 820.4M | 910.6M | 1.0B | 756.0M | |
Long Term Debt Total | 600M | 133.7M | 98.9M | 269.7M | 242.7M | 203.3M |
AAR Corp Investors Sentiment
The influence of AAR Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in AAR. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to AAR Corp's public news can be used to forecast risks associated with an investment in AAR. The trend in average sentiment can be used to explain how an investor holding AAR can time the market purely based on public headlines and social activities around AAR Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AAR Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AAR Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average AAR Corp's news discussions. The higher the estimated score, the more favorable is the investor's outlook on AAR Corp.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards AAR Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, AAR Corp's short interest history, or implied volatility extrapolated from AAR Corp options trading.
Pair Trading with AAR Corp
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AAR Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AAR Corp will appreciate offsetting losses from the drop in the long position's value.Moving against AAR Stock
0.56 | CAE | CAE Inc Financial Report 29th of May 2024 | PairCorr |
0.42 | EH | Ehang Holdings Buyout Trend | PairCorr |
The ability to find closely correlated positions to AAR Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AAR Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AAR Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AAR Corp to buy it.
The correlation of AAR Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AAR Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AAR Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AAR Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AAR Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in AAR Stock, please use our How to Invest in AAR Corp guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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When running AAR Corp's price analysis, check to measure AAR Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AAR Corp is operating at the current time. Most of AAR Corp's value examination focuses on studying past and present price action to predict the probability of AAR Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AAR Corp's price. Additionally, you may evaluate how the addition of AAR Corp to your portfolios can decrease your overall portfolio volatility.
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Is AAR Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AAR Corp. If investors know AAR will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AAR Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.37) | Earnings Share 1.69 | Revenue Per Share 63.442 | Quarterly Revenue Growth 0.089 | Return On Assets 0.0538 |
The market value of AAR Corp is measured differently than its book value, which is the value of AAR that is recorded on the company's balance sheet. Investors also form their own opinion of AAR Corp's value that differs from its market value or its book value, called intrinsic value, which is AAR Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AAR Corp's market value can be influenced by many factors that don't directly affect AAR Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AAR Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if AAR Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AAR Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.