Applied Optoelec Financials
Applied Optoelec (AAOI) reported $455.7M in revenue for fiscal year 2025, up 82.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
AAOI’s latest growth spurt is really an externally financed capacity build, with working capital and capex consuming cash faster than earnings improved.
Between FY2024 and FY2025, revenue jumped to$455.7M while gross margin improved to30.0% , showing the reported loss was not driven by weaker unit economics. The real strain was cash conversion: operating cash flow sank to-$174.4M as$427.5M was tied up in receivables plus inventory, so growth behaved like customer and stock financing rather than immediate cash generation.
That expansion was funded mainly through external capital, not internally generated cash: financing cash flow supplied
Capital intensity also stepped up sharply: capital spending hit
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Applied Optoelec's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Applied Optoelec has an operating margin of -12.0%, meaning the company loses $12 on every $100 of revenue. This results in a profitability score of 33/100. This is up from -28.4% the prior year.
Applied Optoelec's revenue surged 82.8% year-over-year to $455.7M, reflecting rapid business expansion. This strong growth earns a score of 93/100.
Applied Optoelec carries a low D/E ratio of 0.00, meaning only $0.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 90/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.63, Applied Optoelec holds $2.63 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 71/100.
Applied Optoelec's operations used $174.4M of cash, and capex of $179.1M added to the outflow, for a free cash flow shortfall of $353.6M. This results in a cash flow score of 8/100.
Applied Optoelec posts a -5.2% return on equity (ROE), meaning it loses $5 for every $100 of shareholders' equity. This results in a returns score of 34/100. This is up from -81.5% the prior year.
Applied Optoelec scores 14.65, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($10.6B) relative to total liabilities ($434.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Applied Optoelec passes 4 of 9 financial strength tests. 1 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
Applied Optoelec reported a net loss of $38.2M while operations used $174.4M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Applied Optoelec reported an operating loss of $54.6M against $3.5M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Applied Optoelec generated $455.7M in revenue in fiscal year 2025. This represents an increase of 82.8% from the prior year.
Applied Optoelec's EBITDA was -$26.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 46.5% from the prior year.
Applied Optoelec reported -$38.2M in net income in fiscal year 2025. This represents an increase of 79.5% from the prior year.
Applied Optoelec earned -$0.64 per diluted share (EPS) in fiscal year 2025. This represents an increase of 85.8% from the prior year.
Cash & Balance Sheet
Applied Optoelec recorded an outflow of $353.6M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents a decrease of 213.1% from the prior year.
Applied Optoelec held $206.1M in cash against $0 in long-term debt as of fiscal year 2025, with $257.3M of liabilities due within a year.
Not reported for fiscal year 2025.
Margins & Returns
Applied Optoelec's gross margin was 30.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 5.3 percentage points from the prior year.
Applied Optoelec's operating margin was -12.0% in fiscal year 2025, reflecting core business profitability. This is up 16.5 percentage points from the prior year.
Applied Optoelec's net profit margin was -8.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 66.5 percentage points from the prior year.
Applied Optoelec's ROE was -5.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 76.3 percentage points from the prior year.
Capital Allocation
Applied Optoelec invested $85.5M in research and development in fiscal year 2025. This represents an increase of 55.6% from the prior year.
Applied Optoelec invested $179.1M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 312.7% from the prior year.
Not reported for fiscal year 2025.
AAOI Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $596.0M | $455.7M+82.8% | $249.4M+14.6% | $217.6M-2.3% | $222.8M+5.3% | $211.6M-9.8% | $234.6M+22.9% | $190.9M-28.6% | $267.5M-30.0% | $382.3M+46.6% | $260.7M+37.3% | $189.9M+45.6% | $130.4M+66.3% | $78.4M+23.7% | $63.4M+32.6% | $47.8M |
| Cost of Revenue | $423.6M | $318.8M+70.0% | $187.6M+18.2% | $158.7M-16.1% | $189.2M+8.8% | $173.8M-5.6% | $184.1M+27.2% | $144.7M-19.5% | $179.7M-16.8% | $216.0M+24.3% | $173.8M+34.2% | $129.4M+50.2% | $86.2M+55.6% | $55.4M+24.5% | $44.5M+29.1% | $34.5M |
| Gross Profit | $172.3M | $136.9M+121.5% | $61.8M+4.9% | $58.9M+75.2% | $33.6M-10.8% | $37.7M-25.4% | $50.5M+9.4% | $46.2M-47.4% | $87.8M-47.2% | $166.3M+91.2% | $87.0M+43.8% | $60.5M+36.6% | $44.2M+92.1% | $23.0M+21.7% | $18.9M+41.6% | $13.4M |
| R&D Expenses | $107.6M | $85.5M+55.6% | $55.0M+52.8% | $36.0M-0.7% | $36.2M-12.1% | $41.2M-5.0% | $43.4M0.0% | $43.4M-13.0% | $49.9M+41.1% | $35.4M+11.3% | $31.8M+52.4% | $20.9M+30.6% | $16.0M+87.6% | $8.5M+12.0% | $7.6M+17.9% | $6.5M |
| SG&A Expenses | $97.5M | $75.7M+27.1% | $59.6M+12.0% | $53.2M+14.1% | $46.7M+10.1% | $42.4M+1.1% | $41.9M+1.0% | $41.5M+5.0% | $39.5M+12.0% | $35.3M+38.1% | $25.5M+29.1% | $19.8M+15.7% | $17.1M+60.8% | $10.6M+32.7% | $8.0M-2.8% | $8.2M |
| Operating Income | -$67.4M | -$54.6M+23.0% | -$70.9M-71.5% | -$41.3M+29.9% | -$59.0M-3.9% | -$56.8M-16.2% | -$48.8M-0.2% | -$48.7M-352.7% | -$10.8M-112.4% | $87.0M+277.7% | $23.0M+71.2% | $13.4M+161.8% | $5.1M+1773.6% | -$307K-271.5% | $179K+104.8% | -$3.7M |
| Interest Expense | $3.5M | $3.5M-48.8% | $6.8M-27.6% | $9.4M+49.2% | $6.3M+12.4% | $5.6M-0.3% | $5.6M+4.3% | $5.4M+388.7% | $1.1M+28.9% | $858K-50.0% | $1.7M+68.7% | $1.0M+212.3% | $326K-71.0% | $1.1M-18.5% | $1.4M+3.2% | $1.3M |
| Income Tax | -$6.1M | -$8.5M-423900.0% | $2K-77.8% | $9K+800.0% | $1K-50.0% | $2K-100.0% | $7.2M-50.7% | $14.7M+292.1% | -$7.6M-172.2% | $10.6M+203.4% | -$10.2M-2828.3% | $375K+88.4% | $199K | $0 | $0 | $0 |
| Net Income | -$57.0M | -$38.2M+79.5% | -$186.7M-233.2% | -$56.0M+15.6% | -$66.4M-22.6% | -$54.2M+7.3% | -$58.5M+11.5% | -$66.0M-2977.8% | -$2.1M-102.9% | $74.0M+136.8% | $31.2M+189.4% | $10.8M+152.0% | $4.3M+404.6% | -$1.4M-48.8% | -$945K+82.3% | -$5.3M |
| EPS (Diluted) | — | -$0.64+85.8% | -$4.50-157.1% | -$1.75+26.5% | -$2.38-18.4% | -$2.01+24.7% | -$2.67+19.3% | -$3.31-2909.1% | -$0.11-103.0% | $3.67+108.5% | $1.76+170.8% | $0.65+132.1% | $0.28 | -$0.14 | -$3.56 | N/A |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
AAOI Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.2B+113.6% | $547.0M+40.6% | $389.2M-4.7% | $408.3M-10.2% | $454.5M-5.5% | $480.8M+3.0% | $466.8M0.0% | $466.8M+3.1% | $452.9M+40.5% | $322.3M+17.9% | $273.5M+48.9% | $183.7M+65.4% | $111.1M+68.9% | $65.7M | N/A |
| Current Assets | $675.7M+124.3% | $301.3M+74.5% | $172.6M-5.8% | $183.2M-5.6% | $194.1M-7.2% | $209.2M+8.5% | $192.8M-0.8% | $194.3M-15.4% | $229.7M+45.8% | $157.6M+2.4% | $153.9M+35.9% | $113.2M+45.3% | $77.9M+98.6% | $39.2M | N/A |
| Cash & Equivalents | $206.1M+205.7% | $67.4M+48.6% | $45.4M+83.8% | $24.7M-28.8% | $34.7M-20.2% | $43.4M-27.6% | $60.0M+7.8% | $55.6M-32.9% | $82.9M+65.1% | $50.2M+78.9% | $28.1M-12.7% | $32.2M+46.2% | $22.0M+105.2% | $10.7M+506.8% | $1.8M |
| Inventory | $183.1M+107.8% | $88.1M+38.0% | $63.9M-19.8% | $79.7M-13.9% | $92.5M-16.2% | $110.4M+29.8% | $85.0M-8.8% | $93.3M+23.1% | $75.8M+46.2% | $51.8M-21.8% | $66.2M+96.1% | $33.8M+72.3% | $19.6M+57.0% | $12.5M | N/A |
| Accounts Receivable | $244.4M+109.2% | $116.8M+143.0% | $48.1M-21.4% | $61.2M+27.6% | $47.9M+11.4% | $43.0M+24.2% | $34.7M+13.5% | $30.5M-49.0% | $59.9M+20.3% | $49.8M+28.3% | $38.8M+22.7% | $31.6M+43.0% | $22.1M+63.3% | $13.5M | N/A |
| Total Liabilities | $434.5M+36.7% | $317.9M+82.4% | $174.3M-22.0% | $223.6M+11.9% | $199.9M-1.5% | $202.9M+5.1% | $193.0M+40.1% | $137.7M+15.1% | $119.7M+26.1% | $94.9M-12.2% | $108.1M+57.4% | $68.7M+43.1% | $48.0M+38.1% | $34.7M | N/A |
| Current Liabilities | $257.3M+51.3% | $170.1M+82.2% | $93.4M-32.6% | $138.6M+27.2% | $109.0M+5.6% | $103.1M+12.9% | $91.4M+18.0% | $77.4M+9.5% | $70.7M+17.9% | $60.0M-19.0% | $74.1M+52.4% | $48.6M+24.4% | $39.1M+52.7% | $25.6M | N/A |
| Long-Term Debt | $0-100.0% | $4.3M | $0 | $0-100.0% | $5.0M-64.0% | $13.9M-16.0% | $16.6M-72.6% | $60.3M+23.2% | $49.0M+40.1% | $35.0M+2.8% | $34.0M+78.4% | $19.1M-27.0% | $26.1M | N/A | N/A |
| Total Equity | $733.9M+220.3% | $229.1M+6.6% | $214.9M+16.4% | $184.7M-27.5% | $254.6M-8.4% | $277.9M+1.5% | $273.8M-16.8% | $329.1M-1.3% | $333.3M+46.6% | $227.4M+37.5% | $165.4M+43.8% | $115.0M+82.3% | $63.1M+103.4% | $31.0M+50.0% | $20.7M |
| Retained Earnings | -$490.1M-8.5% | -$451.9M-70.4% | -$265.1M-26.8% | -$209.1M-46.5% | -$142.7M-61.2% | -$88.5M-194.5% | -$30.1M-183.5% | $36.0M-5.6% | $38.1M+203.0% | -$37.0M+45.8% | -$68.2M+13.7% | -$79.0M+5.1% | -$83.3M-1.7% | -$81.9M | N/A |
Not reported in any period shown, so not listed: Goodwill.
AAOI Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$131.8M | -$174.4M-150.9% | -$69.5M-776.9% | -$7.9M+43.5% | -$14.0M-20.4% | -$11.6M+73.5% | -$44.0M-2409.1% | -$1.8M-112.5% | $14.0M-83.4% | $84.3M+47.6% | $57.1M+475.4% | -$15.2M-278.3% | $8.5M+237.8% | -$6.2M-1629.1% | -$358K+91.3% | -$4.1M |
| Capital Expenditures | N/A | $179.1M+312.7% | $43.4M+378.1% | $9.1M+182.8% | $3.2M-59.8% | $8.0M-49.5% | $15.8M-45.1% | $28.8M-59.9% | $71.9M+7.3% | $67.0M+35.4% | $49.4M-13.4% | $57.1M+38.8% | $41.1M+328.4% | $9.6M | N/A | N/A |
| Free Cash Flow | N/A | -$353.6M-213.1% | -$112.9M-564.0% | -$17.0M+1.3% | -$17.2M+12.2% | -$19.6M+67.2% | -$59.8M-95.8% | -$30.5M+47.2% | -$57.8M-433.9% | $17.3M+126.0% | $7.7M+110.6% | -$72.3M-121.8% | -$32.6M-106.5% | -$15.8M | N/A | N/A |
| Investing Cash Flow | -$769.1M | -$210.6M-315.4% | -$50.7M-243.5% | -$14.8M-285.0% | -$3.8M+63.6% | -$10.5M+45.5% | -$19.3M+39.8% | -$32.1M+58.0% | -$76.5M-9.1% | -$70.2M-68.9% | -$41.5M+32.6% | -$61.6M | N/A | N/A | N/A | N/A |
| Financing Cash Flow | $1.3B | $527.9M+271.3% | $142.2M+250.4% | $40.6M+277.4% | $10.8M-23.7% | $14.1M-70.3% | $47.4M+11.4% | $42.6M+22.4% | $34.8M+90.8% | $18.2M+1002.4% | $1.7M-97.9% | $77.5M | N/A | N/A | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
AAOI Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.0%+5.3pp | 24.8%-2.3pp | 27.1%+12.0pp | 15.1%-2.7pp | 17.8%-3.7pp | 21.5%-2.7pp | 24.2%-8.6pp | 32.8%-10.7pp | 43.5%+10.1pp | 33.4%+1.5pp | 31.8%-2.1pp | 33.9%+4.6pp | 29.4%-0.5pp | 29.8%+1.9pp | 28.0% |
| Operating Margin | -12.0%+16.5pp | -28.4%-9.4pp | -19.0%+7.5pp | -26.5%+0.4pp | -26.8%-6.0pp | -20.8%+4.7pp | -25.5%-21.5pp | -4.0%-26.8pp | 22.7%+13.9pp | 8.8%+1.8pp | 7.1%+3.1pp | 3.9%+4.3pp | -0.4%-0.7pp | 0.3%+8.1pp | -7.8% |
| Net Margin | -8.4%+66.5pp | -74.9%-49.1pp | -25.8%+4.0pp | -29.8%-4.2pp | -25.6%-0.7pp | -24.9%+9.7pp | -34.6%-33.8pp | -0.8%-20.1pp | 19.3%+7.4pp | 12.0%+6.3pp | 5.7%+2.4pp | 3.3%+5.1pp | -1.8%-0.3pp | -1.5%+9.7pp | -11.1% |
| Return on Equity | -5.2%+76.3pp | -81.5%-55.4pp | -26.1%+9.9pp | -35.9%-14.7pp | -21.3%-0.3pp | -21.0%+3.1pp | -24.1%-23.5pp | -0.7%-22.8pp | 22.2%+8.4pp | 13.7%+7.2pp | 6.5%+2.8pp | 3.7%+5.9pp | -2.2%+0.8pp | -3.0%+22.7pp | -25.8% |
| Return on Assets | -3.3%+30.9pp | -34.1%-19.7pp | -14.4%+1.9pp | -16.3%-4.3pp | -11.9%+0.2pp | -12.2%+2.0pp | -14.1%-13.7pp | -0.5%-16.8pp | 16.3%+6.6pp | 9.7%+5.7pp | 4.0%+1.6pp | 2.3%+3.6pp | -1.3%+0.2pp | -1.4% | N/A |
| Current Ratio | 2.63+0.9x | 1.77-0.1x | 1.85+0.5x | 1.32-0.5x | 1.78-0.2x | 2.03-0.1x | 2.11-0.4x | 2.51-0.7x | 3.25+0.6x | 2.63+0.5x | 2.08-0.3x | 2.33+0.3x | 2.00+0.5x | 1.53 | N/A |
| Debt-to-Equity | 0.000.0x | 0.020.0x | 0.000.0x | 0.000.0x | 0.020.0x | 0.050.0x | 0.06-0.1x | 0.180.0x | 0.150.0x | 0.15-0.1x | 0.210.0x | 0.17-0.2x | 0.41-0.7x | 1.12 | N/A |
| FCF Margin | -77.6%-32.3pp | -45.3%-37.5pp | -7.8%-0.1pp | -7.7%+1.6pp | -9.3%+16.2pp | -25.5%-9.5pp | -16.0%+5.6pp | -21.6%-26.2pp | 4.5%+1.6pp | 2.9%+41.0pp | -38.1%-13.1pp | -25.0%-4.9pp | -20.1% | N/A | N/A |
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Where Applied Optoelec Ranks
Frequently Asked Questions
What is Applied Optoelec's annual revenue?
Applied Optoelec (AAOI) reported $455.7M in total revenue for fiscal year 2025. This represents a 82.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Applied Optoelec's revenue growing?
Applied Optoelec (AAOI) revenue grew by 82.8% year-over-year, from $249.4M to $455.7M in fiscal year 2025.
Is Applied Optoelec profitable?
No, Applied Optoelec (AAOI) reported a net income of -$38.2M in fiscal year 2025, with a net profit margin of -8.4%.
What is Applied Optoelec's EBITDA?
Applied Optoelec (AAOI) had EBITDA of -$26.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Applied Optoelec have?
As of fiscal year 2025, Applied Optoelec (AAOI) had $206.1M in cash and equivalents against $0 in long-term debt.
What is Applied Optoelec's gross margin?
Applied Optoelec (AAOI) had a gross margin of 30.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Applied Optoelec's operating margin?
Applied Optoelec (AAOI) had an operating margin of -12.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Applied Optoelec's net profit margin?
Applied Optoelec (AAOI) had a net profit margin of -8.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Applied Optoelec's return on equity (ROE)?
Applied Optoelec (AAOI) has a return on equity of -5.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Applied Optoelec's free cash flow?
Applied Optoelec (AAOI) recorded an outflow of $353.6M in free cash flow during fiscal year 2025. This represents a -213.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Applied Optoelec's operating cash flow?
Applied Optoelec (AAOI) recorded an outflow of $174.4M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Applied Optoelec's total assets?
Applied Optoelec (AAOI) had $1.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Applied Optoelec's capital expenditures?
Applied Optoelec (AAOI) invested $179.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Applied Optoelec spend on research and development?
Applied Optoelec (AAOI) invested $85.5M in research and development during fiscal year 2025.
What is Applied Optoelec's current ratio?
Applied Optoelec (AAOI) had a current ratio of 2.63 as of fiscal year 2025, which is generally considered healthy.
What is Applied Optoelec's debt-to-equity ratio?
Applied Optoelec (AAOI) had a debt-to-equity ratio of 0.00 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Applied Optoelec's return on assets (ROA)?
Applied Optoelec (AAOI) had a return on assets of -3.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Applied Optoelec's cash runway?
Based on fiscal year 2025 data, Applied Optoelec (AAOI) had $206.1M in cash against an annual operating cash burn of $174.4M. This gives an estimated cash runway of approximately 14 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Applied Optoelec's Altman Z-Score?
Applied Optoelec (AAOI) has an Altman Z-Score of 14.65, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Applied Optoelec's Piotroski F-Score?
Applied Optoelec (AAOI) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Applied Optoelec's earnings high quality?
Applied Optoelec (AAOI) reported a net loss of $38.2M while operations used $174.4M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Applied Optoelec cover its interest payments?
Applied Optoelec (AAOI) reported an operating loss of $54.6M against $3.5M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Applied Optoelec?
Applied Optoelec (AAOI) scores 55 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.