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 * 1.3914 | + | 0.528 * 1.0895 | + | 0.404 * 0.8604 | + | 0.892 * 0.9319 | + | 0.115 * 1.0533 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.041 | + | 4.679 * 0.001614 | - | 0.327 * 1.3169 |
| = | -2.29 |
* 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 $944 Mil.
Revenue was 577 + 716 + 713 + 760 = $2,766 Mil.
Gross Profit was 259 + 371 + 369 + 415 = $1,414 Mil.
Total Current Assets was $1,440 Mil.
Total Assets was $4,337 Mil.
Property, Plant and Equipment(Net PPE) was $404 Mil.
Depreciation, Depletion and Amortization(DDA) was $353 Mil.
Selling, General, & Admin. Expense(SGA) was $976 Mil.
Total Current Liabilities was $1,219 Mil.
Long-Term Debt & Capital Lease Obligation was $2,585 Mil.
Net Income was -1408 + -1 + -66 + 6 = $-1,469 Mil.
Non Operating Income was -1271 + 7 + 0 + -9 = $-1,273 Mil.
Cash Flow from Operations was -85 + -2 + -111 + -5 = $-203 Mil.
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Total Receivables was $728 Mil.
Revenue was 732 + 738 + 743 + 755 = $2,968 Mil.
Gross Profit was 407 + 412 + 416 + 418 = $1,653 Mil.
Total Current Assets was $1,570 Mil.
Total Assets was $6,034 Mil.
Property, Plant and Equipment(Net PPE) was $433 Mil.
Depreciation, Depletion and Amortization(DDA) was $418 Mil.
Selling, General, & Admin. Expense(SGA) was $1,006 Mil.
Total Current Liabilities was $1,099 Mil.
Long-Term Debt & Capital Lease Obligation was $2,920 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) |
| = | (944 / 2766) | / | (728 / 2968) |
| = | 0.341287 | / | 0.245283 |
| | = | 1.3914 |
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) |
| = | (1653 / 2968) | / | (1414 / 2766) |
| = | 0.556941 | / | 0.511208 |
| | = | 1.0895 |
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 - (1440 + 404) / 4337) | / | (1 - (1570 + 433) / 6034) |
| = | 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 |
| = | 2766 | / | 2968 |
| | = | 0.9319 |
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)) |
| = | (418 / (418 + 433)) | / | (353 / (353 + 404)) |
| = | 0.491187 | / | 0.466314 |
| | = | 1.0533 |
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) |
| = | (976 / 2766) | / | (1006 / 2968) |
| = | 0.352856 | / | 0.338949 |
| | = | 1.041 |
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) |
| = | ((2585 + 1219) / 4337) | / | ((2920 + 1099) / 6034) |
| = | 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 |
| = | (-1469 - -1273 | - | -203) | / | 4337 |
| | = | 0.001614 |
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 -2.29 suggests that the company is unlikely to be a manipulator.
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