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Avaya Holdings (Avaya Holdings) Sloan Ratio % : -26.45% (As of Jun. 2022)


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What is Avaya Holdings Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Avaya Holdings's Sloan Ratio for the quarter that ended in Jun. 2022 was -26.45%.

As of Jun. 2022, Avaya Holdings has a Sloan Ratio of -26.45%, indicating there is a warning stage of accrual build up.


Avaya Holdings Sloan Ratio % Historical Data

The historical data trend for Avaya Holdings's Sloan Ratio % 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.

Avaya Holdings Sloan Ratio % Chart

Avaya Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -8.36 -10.26 -11.34 -18.31 1.24

Avaya Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Sloan Ratio % Get a 7-Day Free Trial 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 0.28 1.24 2.90 3.52 -26.45

Competitive Comparison of Avaya Holdings's Sloan Ratio %

For the Software - Application subindustry, Avaya Holdings's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, Avaya Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Avaya Holdings's Sloan Ratio % falls into.



Avaya Holdings Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Avaya Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2021 is calculated as

Sloan Ratio=(Net Income (A: Sep. 2021 )-Cash Flow from Operations (A: Sep. 2021 )
-Cash Flow from Investing (A: Sep. 2021 ))/Total Assets (A: Sep. 2021 )
=(-13-30
--117)/5985
=1.24%

Avaya Holdings's Sloan Ratio for the quarter that ended in Jun. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2022 )
=(-1469--203
--119)/4337
=-26.45%

Avaya Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was 6 (Sep. 2021 ) + -66 (Dec. 2021 ) + -1 (Mar. 2022 ) + -1408 (Jun. 2022 ) = $-1,469 Mil.
Avaya Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2022 was -5 (Sep. 2021 ) + -111 (Dec. 2021 ) + -2 (Mar. 2022 ) + -85 (Jun. 2022 ) = $-203 Mil.
Avaya Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2022 was -39 (Sep. 2021 ) + -27 (Dec. 2021 ) + -25 (Mar. 2022 ) + -28 (Jun. 2022 ) = $-119 Mil.

* 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  (OTCPK:AVYAQ) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Jun. 2022, Avaya Holdings has a Sloan Ratio of -26.45%, indicating there is a warning stage of accrual build up.


Avaya Holdings Sloan Ratio % Related Terms

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Avaya Holdings (Avaya Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2605 Meridian Parkway, Suite 200, Durham, NC, USA, 27713
Avaya Holdings Corp provides digital communications products, solutions, and services for businesses. The company has two operating segments namely Products and Solutions, and Services. Products and Solutions offer Unified Communications and Contact Center platforms, applications and devices. It helps to offer an open, extensible development platform so that customers and third parties can easily create custom applications and automated workflows for their unique needs. Whereas Services consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services. The company generates maximum revenue from the Services segment. Geographically, it derives a majority of revenue from the U.S.
Executives
Carrie W. Teffner director 200 DOMAIN DRIVE, STRATHAM NH 03885
King Theodore Walker Cheng-de 10 percent owner UNIT 1502, 15TH FLOOR, 99 HENNESSY ROAD, WANCHAI K3 999077
Jill Kathleen Frizzley director P.O. BOX 1541, ONE BLUE HILL PLAZA, PEARL RIVER NY 10965
Anna-marie Crowley officer: GVP, Human Resources C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Vito Carnevale officer: SVP, General Counsel C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Rebecca A Roof officer: Interim CFO C/O LORDSTOWN MOTORS CORP., 2300 HALLOCK YOUNG ROAD, LORDSTOWN OH 44481
Alan Masarek director, officer: President and CEO C/O VONAGE HOLDINGS CORP., 23 MAIN STREET, HOLMDEL NJ 07733
Stephen Spears officer: EVP and Chief Revenue Officer C/O AVAYA, 2605 MERIDIAN PKWY, SUITE 200, DURHAM NC 27713
James M Chirico director, officer: President & CEO 2605 MERIDIAN PARKWAY, DURHAM NC 27713
Kevin Speed officer: VP, Controller & CAO AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Kieran J Mcgrath officer: SVP & CFO 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Shefali A Shah officer: SVP, CAO and General Counsel C/O AVAYA, ONE PENN PLAZA, 16TH FLOOR, NEW YORK NY 10119
Susan Louise Spradley director C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Robert I Theis director
Anthony Bartolo officer: EVP, Chief Product Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606

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