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Aviat Networks Beneish M-Score

: -1.73 (As of Today)
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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.

Warning Sign:

Beneish M-Score -1.73 higher than -1.78, which implies that the company might have manipulated its financial results.

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

AVNW' s Beneish M-Score Range Over the Past 10 Years
Min: -6.12   Med: -2.71   Max: 57.19
Current: -1.73

During the past 13 years, the highest Beneish M-Score of Aviat Networks was 57.19. The lowest was -6.12. And the median was -2.71.


Aviat Networks Beneish M-Score Historical Data

The historical data trend for Aviat Networks'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.

* Premium members only.

Aviat Networks Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.76 -2.53 -1.62 -3.09 0.26

Aviat Networks Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.27 0.26 0.24 0.40 -1.73

Competitive Comparison

For the Communication Equipment subindustry, Aviat Networks'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.

   

Aviat Networks Beneish M-Score Distribution

For the Hardware industry and Technology sector, Aviat Networks's Beneish M-Score distribution charts can be found below:

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



Aviat Networks 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 Aviat Networks 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 * 1.2759+0.528 * 1.0239+0.404 * 0.905+0.892 * 1.1179+0.115 * 0.9142
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9086+4.679 * 0.0891-0.327 * 1.0267
=-1.73

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $121.9 Mil.
Revenue was 74.516 + 77.864 + 73.158 + 71.686 = $297.2 Mil.
Gross Profit was 27.536 + 28.156 + 26.081 + 25.879 = $107.7 Mil.
Total Current Assets was $196.6 Mil.
Total Assets was $319.7 Mil.
Property, Plant and Equipment(Net PPE) was $12.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.8 Mil.
Selling, General, & Admin. Expense(SGA) was $56.1 Mil.
Total Current Liabilities was $105.7 Mil.
Long-Term Debt & Capital Lease Obligation was $2.8 Mil.
Net Income was 6.029 + 5.916 + 4.682 + 2.831 = $19.5 Mil.
Non Operating Income was -0.103 + 0.72 + -0.659 + -1.31 = $-1.4 Mil.
Cash Flow from Operations was -8.625 + -2.845 + 0.682 + 3.111 = $-7.7 Mil.
Total Receivables was $85.4 Mil.
Revenue was 66.404 + 70.531 + 66.29 + 62.652 = $265.9 Mil.
Gross Profit was 25.578 + 26.909 + 24.249 + 21.86 = $98.6 Mil.
Total Current Assets was $164.3 Mil.
Total Assets was $290.6 Mil.
Property, Plant and Equipment(Net PPE) was $15.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.2 Mil.
Selling, General, & Admin. Expense(SGA) was $55.2 Mil.
Total Current Liabilities was $93.7 Mil.
Long-Term Debt & Capital Lease Obligation was $2.3 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)
=(121.85 / 297.224) / (85.426 / 265.877)
=0.40996016 / 0.32129895
=1.2759

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)
=(98.596 / 265.877) / (107.652 / 297.224)
=0.37083313 / 0.36219148
=1.0239

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 - (196.606 + 12.718) / 319.682) / (1 - (164.284 + 15.456) / 290.576)
=0.3452118 / 0.38143549
=0.905

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
=297.224 / 265.877
=1.1179

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))
=(5.177 / (5.177 + 15.456)) / (4.811 / (4.811 + 12.718))
=0.25090874 / 0.27445947
=0.9142

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)
=(56.073 / 297.224) / (55.206 / 265.877)
=0.18865569 / 0.20763737
=0.9086

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)
=((2.786 + 105.656) / 319.682) / ((2.344 + 93.666) / 290.576)
=0.33921835 / 0.3304127
=1.0267

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
=(19.458 - -1.352 - -7.677) / 319.682
=0.0891

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.

Aviat Networks has a M-score of -1.73 signals that the company is likely to be a manipulator.


Aviat Networks Beneish M-Score Related Terms

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Aviat Networks Business Description

Aviat Networks logo
Traded in Other Exchanges
Address
200 Parker Drive, Suite C100A, Austin, TX, USA, 78728
Aviat Networks Inc is a networking solutions provider. It designs, manufactures and sells wireless networking products, solutions, and services to mobile and fixed operators, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast network operators around the world. The company's product categories include point-to-point microwave and millimeter wave radios that are licensed (subject to local frequency regulatory requirements), lightly-licensed and license-exempt (operating in license-exempt frequencies), and element and network management software. Primarily the firm's concentrations for most of the Sales and Service resources are in the United States, Western and Southern Africa, the Philippines, and the European Union.
Executives
Taten Bruce M. director 600 TRAVIS, SUITE 5600 HOUSTON TX 77002
Singh Somesh director 1301 S MOPAC EXPRESSWAY SUITE 100 AUSTIN TX 78746
Ingram Bryan director C/O AVAGO TECHNOLOGIES LIMITED 350 WEST TRIMBLE ROAD, BLDG. 90 SAN JOSE CA 95131
Gray David M officer: Sr VP and CFO AVIAT NETWORKS, INC 200 PARKER DRIVE, SUITE C 100A AUSTIN TX 78726
Boase Erin officer: VP Legal Affairs AVIAT NETWORKS, INC. 200 PARKER DRIVE, SUITE C100A AUSTIN TX 78728
Croke Gary officer: VP Marketing and PLM AVIAT NETWORKS, INC. 200 PARKER DRIVE, SUITE C100A AUSTIN TX 78728
Klein Michele director 469 MINOCA ROAD PORTOLA VALLEY CA 94028
Tucker Bryan officer: Sr. VP, Americas Sales and Ser 200 PARKER DRIVE SUITE C100A AUSTIN TX 78728
Sph Group Llc 10 percent owner C/O STEEL PARTNERS HOLDINGS L.P. 590 MADISON AVENUE, 32ND FLOOR NEW YORK NY 10022
Steel Partners Holdings Gp Inc. 10 percent owner 590 MADISON AVENUE 32ND FLOOR NEW YORK NY 10022
Sph Group Holdings Llc 10 percent owner C/O STEEL PARTNERS HOLDINGS L.P. 590 MADISON AVENUE, 32ND FLOOR NEW YORK NY 10022
Steel Partners Holdings L.p. 10 percent owner 590 MADISON AVENUE, 32ND FLOOR NEW YORK NY 10022
Steel Excel Inc. 10 percent owner 590 MADISON AVENUE, 32ND FLOOR NEW YORK NY 10022
Loeb Dahlia director 200 PARKER DRIVE SUITE C100A AUSTIN TX 78728
Smith Pete A officer: President & CEO C/O POLYPORE INTERNATIONAL, INC. 11430 N. COMMUNITY HOUSE RD, SUITE 350 CHARLOTTE NC 28277

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