Avaya Story

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AVYA -- USA Stock  

USD 18.95  0.10  0.53%

Avaya Holdings Corp is scheduled to announce its earnings today. The next earnings report is expected on the 8th of February 2021. Avaya Holdings Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 9.9 Million. The current year Average Equity is expected to grow to about 2.2 B, whereas Average Assets are forecasted to decline to about 8.3 B. While some of us are becoming more enthusiastic about technology space, let's go over Avaya Holdings Corp in greater detail to make a better estimate of its debt utilization. We will analyze if it could be a much better year for Avaya Holdings shareholders.
Published over a week ago
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Chances of Avaya (NYSE:AVYA) to slip in December
The company currently holds 3.26 B in liabilities with Debt to Equity (D/E) ratio of 9.6, indicating Avaya Holdings may have difficulties to generate enough cash to satisfy its financial obligations. Avaya Holdings Corp has a current ratio of 1.23, suggesting that it is in a questionable position to pay out its financial obligations when due.
Avaya Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Avaya Holdings, including all of Avaya Holdings's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Avaya Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall Avaya Holdings debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Avaya Total Debt

Avaya Holdings Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Avaya Holdings Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Avaya Holdings balance sheet include debt obligations and money owed to different Avaya Holdings vendors, workers, and loan providers. Below is the chart of Avaya main long-term debt accounts currently reported on its balance sheet.
You can use Avaya Holdings Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Avaya Holdings's Liquidity

Avaya Holdings financial leverage refers to using borrowed capital as a funding source to finance Avaya Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Avaya Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Avaya Holdings's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Avaya Holdings, but it might be worth checking our own buy vs. sell analysis

Payment of 425 shares by Kevin Speed of Avaya Holdings subject to Rule 16b-3

Legal trades by Avaya Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Avaya insider trading alert for payment of common stock par value $0.01 per share by Kevin Speed, VP Controller & CAO, on 17th of November 2020. This event was filed by Avaya Holdings Corp with SEC on 2020-11-17. Statement of changes in beneficial ownership - SEC Form 4. Kevin Speed currently serves as chief accounting officer, vice president controller of Avaya Holdings Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Avaya Holdings Indicators

The current bullish price patterns experienced by current Avaya Holdings Corp shareholders could raise concerns from investors as the firm it trading at a share price of 18.72 on 834,000 in volume. The company directors and management have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.2. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Avaya Holdings partners.

Liabilities Breakdown

B
Current Liabilities
B
Long-Term Liabilities
Total Liabilities6.71 Billion
Current Liabilities1.02 Billion
Long-Term Liabilities5.01 Billion
Tax Liabilities99.96 Million

Avaya Holdings is likely to close below $19.09 next week

Avaya Holdings current jensen alpha builds up over 0.25. Avaya Holdings Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Avaya Holdings Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Avaya Holdings future alpha.

Our Final Take On Avaya Holdings

Whereas some other firms within the software?application industry are still a little expensive, even after the recent corrections, Avaya Holdings may offer a potential longer-term growth to investors. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in Avaya. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Avaya Holdings.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Avaya Holdings Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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