Aviat Beneish M Score

AVNW
 Stock
  

USD 32.23  0.57  1.80%   

This module uses fundamental data of Aviat Networks to approximate the value of its Beneish M Score. Aviat Networks M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Aviat Networks Piotroski F Score and Aviat Networks Altman Z Score analysis.
  
Aviat Networks Total Debt is fairly stable at the moment as compared to the past year. Aviat Networks reported Total Debt of 2.92 Million in 2021. Debt Current is likely to climb to about 5 M in 2022, whereas Long Term Debt to Equity is likely to drop 0.05 in 2022. Aviat Networks Receivables Turnover is fairly stable at the moment as compared to the past year. Aviat Networks reported Receivables Turnover of 2.97 in 2021. Accrued Expenses Turnover is likely to climb to 11.51 in 2022, whereas Inventory Turnover is likely to drop 7.16 in 2022.
At this time, it appears that Aviat Networks is an unlikely manipulator. The earnings manipulation may begin if Aviat Networks' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Aviat Networks executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Aviat Networks' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.73
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.83Focus
Asset Quality0.76Focus
Expense Coverage1.11Focus
Gross Margin Strengs0.98Focus
Accruals Factor1.11Focus
Depreciation Resistance1.12Focus
Net Sales Growth0.95Focus
Financial Leverage Condition1.27Focus

Aviat Networks Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Aviat Networks' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense60.4 M57.7 M
Sufficiently Up
Decreasing
Slightly volatile
Revenues286.8 M303 M
Notably Down
Decreasing
Stable
Trade and Non Trade Receivables93.2 M119 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net14.8 M11.6 M
Significantly Up
Decreasing
Slightly volatile
Operating Income14.6 M28.7 M
Way Down
Increasing
Slightly volatile
Net Cash Flow from Operations6.4 M2.8 M
Way Up
Increasing
Slightly volatile
Liabilities Non Current15.7 M17.7 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities100.3 M104.5 M
Sufficiently Down
Decreasing
Slightly volatile
Total Liabilities116.3 M122.2 M
Notably Down
Decreasing
Slightly volatile
Investments Current5.9 M10.9 M
Way Down
Increasing
Slightly volatile
Investments5.9 M10.9 M
Way Down
Increasing
Slightly volatile
Gross Margin35.436.056
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and AccretionM5.5 M
Significantly Up
Decreasing
Slightly volatile
Debt Non Current5.9 M2.4 M
Way Up
Increasing
Slightly volatile
Debt CurrentM513 K
Way Up
Decreasing
Slightly volatile
Total Debt6.3 M2.9 M
Way Up
Decreasing
Slightly volatile
Assets Non Current76.6 M117.5 M
Way Down
Increasing
Slightly volatile
Current Assets174.2 M206.4 M
Fairly Down
Decreasing
Very volatile
Total Assets250.8 M323.9 M
Significantly Down
Increasing
Slightly volatile

Aviat Networks Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Aviat Networks' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Aviat Networks in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Aviat Networks' degree of accounting gimmicks and manipulations.

About Aviat Networks Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Total Assets

250.78 Million

Aviat Networks Total Assets are fairly stable at the moment as compared to the past year. Aviat Networks reported Total Assets of 323.9 Million in 2021

About Aviat Networks Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Aviat Networks's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Aviat Networks using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Aviat Networks based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Aviat Networks, Inc. provides microwave networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company was incorporated in 2006 and is headquartered in Austin, Texas. Aviat Networks operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 636 people.

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Our tools can tell you how much better you can do entering a position in Aviat Networks without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Aviat Networks

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Aviat Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aviat Networks will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Aviat Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aviat Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aviat Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aviat Networks to buy it.
The correlation of Aviat Networks is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aviat Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aviat Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Aviat Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Aviat Networks Piotroski F Score and Aviat Networks Altman Z Score analysis. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running Aviat Networks price analysis, check to measure Aviat Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Aviat Networks is operating at the current time. Most of Aviat Networks' value examination focuses on studying past and present price action to predict the probability of Aviat Networks' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Aviat Networks' price. Additionally, you may evaluate how the addition of Aviat Networks to your portfolios can decrease your overall portfolio volatility.
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Is Aviat Networks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aviat Networks. If investors know Aviat will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aviat Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.7
Market Capitalization
364.8 M
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0538
Return On Equity
0.0709
The market value of Aviat Networks is measured differently than its book value, which is the value of Aviat that is recorded on the company's balance sheet. Investors also form their own opinion of Aviat Networks' value that differs from its market value or its book value, called intrinsic value, which is Aviat Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aviat Networks' market value can be influenced by many factors that don't directly affect Aviat Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Aviat Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine Aviat Networks value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aviat Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.