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Aviat Networks Altman Z-Score

: 0.68 (As of Today)
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Warning Sign:

Altman Z-score of 0.63 is in distress zone. This implies bankruptcy possibility in the next two years.

Aviat Networks has a Altman Z-Score of 0.68, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

AVNW' s Altman Z-Score Range Over the Past 10 Years
Min: -5.28   Med: -0.39   Max: 22.7
Current: 0.63

During the past 13 years, Aviat Networks's highest Altman Z-Score was 22.70. The lowest was -5.28. And the median was -0.39.


Aviat Networks Altman Z-Score Historical Data

The historical data trend for Aviat Networks's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.42 -4.30 -3.81 -3.45 0.47

Aviat Networks Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Altman Z-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 0.59 0.47 0.50 0.53 0.59

Competitive Comparison

For the Communication Equipment subindustry, Aviat Networks's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

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



Aviat Networks Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Aviat Networks's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.2845+1.4*-1.8893+3.3*0.0841+0.6*2.9662+1.0*0.9297
=0.68

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Mar. 2022:
Total Assets was $319.7 Mil.
Total Current Assets was $196.6 Mil.
Total Current Liabilities was $105.7 Mil.
Retained Earnings was $-604.0 Mil.
Pre-Tax Income was 7.307 + 8.968 + 6.842 + 3.761 = $26.9 Mil.
Interest Expense was 0 + 0 + 0 + 0 = $0.0 Mil.
Revenue was 74.516 + 77.864 + 73.158 + 71.686 = $297.2 Mil.
Market Cap (Today) was $362.9 Mil.
Total Liabilities was $122.4 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(196.606 - 105.656)/319.682
=0.2845

X2=Retained Earnings/Total Assets
=-603.975/319.682
=-1.8893

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(26.878 - 0)/319.682
=0.0841

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=362.925/122.352
=2.9662

X5=Revenue/Total Assets
=297.224/319.682
=0.9297

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Aviat Networks has a Altman Z-Score of 0.68 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Aviat Networks  (NAS:AVNW) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Aviat Networks Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Aviat Networks's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


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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