Avianca Holdings (BOG:PFAVH) Beneish M-Score : 0.00 (As of May. 21, 2024)

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What is Avianca Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Avianca Holdings's Beneish M-Score or its related term are showing as below:

During the past 11 years, the highest Beneish M-Score of Avianca Holdings was 0.00. The lowest was 0.00. And the median was 0.00.

Avianca Holdings Beneish M-Score Historical Data

The historical data trend for Avianca Holdings's Beneish M-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.

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Avianca Holdings Beneish M-Score Chart

Avianca Holdings Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Beneish M-Score

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-2.86

-2.71

-2.41

-3.24

5.78

Avianca Holdings Quarterly Data
	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21
Beneish M-Score	Get a 7-Day Free Trial															-3.08	5.78	-3.36	-4.58	2.18

Competitive Comparison of Avianca Holdings's Beneish M-Score

For the Airlines subindustry, Avianca Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-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.

Avianca Holdings's Beneish M-Score Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Avianca Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Avianca Holdings's Beneish M-Score falls into.

Avianca Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Avianca Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.4605

0.528 * 11.5048

0.404 * 0.8515

0.892 * 0.7716

0.115 * 0.9828

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5929

4.679 * -0.183312

0.327 * 1.2484

2.18

This Year (Sep21) TTM:

Last Year (Sep20) TTM:

Total Receivables was COP1,305,157 Mil.
Revenue was 2282037.294 + 1603893.053 + 1347098.338 + 1616846.218 = COP6,849,875 Mil.
Gross Profit was 350118.291 + -101169.113 + -277465.272 + 136805.76 = COP108,290 Mil.
Total Current Assets was COP6,349,205 Mil.
Total Assets was COP25,112,285 Mil.
Property, Plant and Equipment(Net PPE) was COP16,681,635 Mil.
Depreciation, Depletion and Amortization(DDA) was COP1,777,606 Mil.
Selling, General, & Admin. Expense(SGA) was COP2,683,317 Mil.
Total Current Liabilities was COP27,140,905 Mil.
Long-Term Debt & Capital Lease Obligation was COP4,698,567 Mil.
Net Income was -1333741.59 + -1255576.37 + -1128179.852 + -1627648.549 = COP-5,345,146 Mil.
Non Operating Income was 51164.752 + -10859.754 + 102633.681 + -706905.793 = COP-563,967 Mil.
Cash Flow from Operations was 95999.147 + 213881.308 + -472396.367 + -15271.523 = COP-177,787 Mil.

Total Receivables was COP1,158,145 Mil.
Revenue was 607498.2 + 880740.788 + 3303955.737 + 4085398.158 = COP8,877,593 Mil.
Gross Profit was -363829.431 + -304131.054 + 598612.711 + 1684008.559 = COP1,614,661 Mil.
Total Current Assets was COP2,982,099 Mil.
Total Assets was COP23,470,346 Mil.
Property, Plant and Equipment(Net PPE) was COP18,203,609 Mil.
Depreciation, Depletion and Amortization(DDA) was COP1,902,873 Mil.
Selling, General, & Admin. Expense(SGA) was COP2,183,193 Mil.
Total Current Liabilities was COP18,427,137 Mil.
Long-Term Debt & Capital Lease Obligation was COP5,409,624 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1305157.363 / 6849874.903)	/	(1158145.28 / 8877592.883)
	=	0.190537	/	0.130457
	=	1.4605

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1614660.785 / 8877592.883)	/	(108289.666 / 6849874.903)
	=	0.18188	/	0.015809
	=	11.5048

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (6349205.157 + 16681635.245) / 25112284.985)	/	(1 - (2982099.305 + 18203608.81) / 23470345.751)
	=	0.082886	/	0.097341
	=	0.8515

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	6849874.903	/	8877592.883
	=	0.7716

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(1902872.612 / (1902872.612 + 18203608.81))	/	(1777605.653 / (1777605.653 + 16681635.245))
	=	0.09464	/	0.096299
	=	0.9828

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(2683316.86 / 6849874.903)	/	(2183192.66 / 8877592.883)
	=	0.391732	/	0.245922
	=	1.5929

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((4698566.508 + 27140905.256) / 25112284.985)	/	((5409624.011 + 18427137.496) / 23470345.751)
	=	1.267884	/	1.015612
	=	1.2484

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-5345146.361 - -563967.114	-	-177787.435)	/	25112284.985
	=	-0.183312

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Avianca Holdings has a M-score of 2.18 signals that the company is likely to be a manipulator.

Avianca Holdings Beneish M-Score Related Terms

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Avianca Holdings (BOG:PFAVH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Avianca Holdings SA (BOG:PFAVH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ph Arifa, Floors 9 and 10, West Boulevard, Santa Maria Business District, Panama, PAN

Website

http://www.avianca.com

Avianca Holdings SA is a company that represents the integrated operation of several airlines that operate nationally and internationally. The company holds investments primarily in passenger airlines, cargo airlines and related activities including tourism, engineering, maintenance and specialized maintenance services. The company has two reportable segments, Air transportation, and Loyalty. The company offers scheduled air passenger transportation services within Colombia and to Central America, North America, South America, and Europe. The company generates the majority of its revenue from Air transportation segment.

Avianca Holdings (BOG:PFAVH) Headlines

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