Forensic Analysis · Air Transportation · as of Nov 11, 2026
Air T Inc (AIRT)
A forensic read on Air T Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Grey Zone
Financial health
1.8
Distress distance
Watch
Earnings quality
4
Forensic signals
203.6%
ROE
12.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Air T Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.8, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.24×
FY2024–FY2026
Cash conversion.Over FY2024–FY2026, cumulative operating cash flow was 0.24× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
+85.1%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +85.1% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. Net operating assets also rose $3.5M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by PP&E up +699% against revenue +12% and inventory up +100% against +12% in revenue. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 53% of net operating assets, against an accruals ratio of 85.1%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
-4.9%
FY2026
Return on invested capital.Return on invested capital is -4.9% in the latest fiscal year and slipping across FY2024–FY2026 from 0.8%. After-tax operating profit was $998,560 in FY2024 and ($10M) in FY2026, with operating income at 0.4% of revenue in FY2024, 0.7% in FY2025 and -3.4% in FY2026. The capital base behind it grew +68% across FY2024–FY2026, from $123M to $207M, while the return fell 5.7 points, so the dollars added over that window earned less than the 0.8% the older base was already earning.
45d DSO
FY2025→FY2026
Receivables vs revenue.Days sales outstanding moved from 30 to 45 days FY2025→FY2026 (receivables +67% vs revenue +12%). Only 24¢ of operating cash arrived for every dollar of profit reported over FY2024–FY2026 ($15.6M against $65.0M), and the receivables balance is one of the places the rest is sitting. Across FY2024–FY2026 the day count ran 29 → 30 → 45 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Receivables grew, but deferred revenue grew +443% over the same period too — rising alongside rising unearned revenue reads as upfront billing on multi-period contracts, not slipping collections. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2025's opening balance is on file, but across the 3 fiscal years read here (FY2024–FY2026) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.DSO (days sales outstanding): the average days the company waits to collect cash after a sale.
Key fundamentals
Latest Revenue$327.1M
Revenue Growth YoY+12.1%
Revenue CAGR (2yr)+6.8%
Net Margin23.8%
Free Cash Flow-$41.5M
Return on Equity203.6%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Air T Inc's actual 10-K/10-Q/8-K filings?