Avaya Holdings Beneish M-Score Historical Data
The historical data trend for Avaya 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.
Avaya Holdings Beneish M-Score Chart
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Avaya Holdings Annual Data
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Trend |
Sep12 |
Sep13 |
Sep14 |
Sep15 |
Sep16 |
Sep17 |
Sep18 |
Sep19 |
Sep20 |
Sep21 |
| Beneish M-Score |
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-0.98 |
-2.93 |
-2.41 |
-2.55 |
-2.11 |
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Avaya Holdings Quarterly Data
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Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
| Beneish M-Score |
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-2.21 |
-2.11 |
-1.94 |
-2.05 |
-2.29 |
Competitive Comparison of Avaya Holdings's Beneish M-Score
For the Software - Application subindustry, Avaya 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.
Avaya Holdings's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, Avaya Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Avaya Holdings's Beneish M-Score falls into.
Avaya 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 Avaya Holdings for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 1.4817 | + | 0.528 * 1.092 | + | 0.404 * 0.8604 | + | 0.892 * 0.9975 | + | 0.115 * 1.0941 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0448 | + | 4.679 * 0.000533 | - | 0.327 * 1.3169 |
| = | -2.14 |
* 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: |
Total Receivables was €893 Mil.
Revenue was 545.842 + 650.128 + 631.005 + 646 = €2,473 Mil.
Gross Profit was 245.014 + 336.868 + 326.565 + 352.75 = €1,261 Mil.
Total Current Assets was €1,362 Mil.
Total Assets was €4,103 Mil.
Property, Plant and Equipment(Net PPE) was €382 Mil.
Depreciation, Depletion and Amortization(DDA) was €313 Mil.
Selling, General, & Admin. Expense(SGA) was €875 Mil.
Total Current Liabilities was €1,153 Mil.
Long-Term Debt & Capital Lease Obligation was €2,445 Mil.
Net Income was -1331.968 + -0.908 + -58.41 + 5.1 = €-1,386 Mil.
Non Operating Income was -1202.366 + 6.356 + 0 + -7.65 = €-1,204 Mil.
Cash Flow from Operations was -80.41 + -1.816 + -98.235 + -4.25 = €-185 Mil.
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Total Receivables was €604 Mil.
Revenue was 607.56 + 619.92 + 610.746 + 640.995 = €2,479 Mil.
Gross Profit was 337.81 + 346.08 + 341.952 + 354.882 = €1,381 Mil.
Total Current Assets was €1,303 Mil.
Total Assets was €5,008 Mil.
Property, Plant and Equipment(Net PPE) was €359 Mil.
Depreciation, Depletion and Amortization(DDA) was €349 Mil.
Selling, General, & Admin. Expense(SGA) was €840 Mil.
Total Current Liabilities was €912 Mil.
Long-Term Debt & Capital Lease Obligation was €2,424 Mil.
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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) |
| = | (893.024 / 2472.975) | / | (604.24 / 2479.221) |
| = | 0.361113 | / | 0.243722 |
| | = | 1.4817 |
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) |
| = | (1380.724 / 2479.221) | / | (1261.197 / 2472.975) |
| = | 0.556918 | / | 0.509992 |
| | = | 1.092 |
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 - (1362.24 + 382.184) / 4102.802) | / | (1 - (1303.1 + 359.39) / 5008.22) |
| = | 0.574821 | / | 0.668048 |
| | = | 0.8604 |
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 |
| = | 2472.975 | / | 2479.221 |
| | = | 0.9975 |
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)) |
| = | (349.152 / (349.152 + 359.39)) | / | (313.176 / (313.176 + 382.184)) |
| = | 0.492775 | / | 0.45038 |
| | = | 1.0941 |
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) |
| = | (875.288 / 2472.975) | / | (839.842 / 2479.221) |
| = | 0.353941 | / | 0.338752 |
| | = | 1.0448 |
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) |
| = | ((2445.41 + 1153.174) / 4102.802) | / | ((2423.6 + 912.17) / 5008.22) |
| = | 0.877104 | / | 0.666059 |
| | = | 1.3169 |
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 |
| = | (-1386.186 - -1203.66 | - | -184.711) | / | 4102.802 |
| | = | 0.000533 |
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.
Avaya Holdings has a M-score of -2.14 suggests that the company is unlikely to be a manipulator.
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