Avnet's liquidation posture as of March 28, 2026 remains deeply negative on a cash and liquid basis, consistent with the MFFAIS-reported CLV of negative $8.1B and LLV of negative $2.6B, while the operating liquidation value of positive $2.9B reflects the going-concern value of working capital assets before PP&E and intangible haircuts. The balance sheet is dominated by two current asset pools — accounts receivable net of $5.5B and inventory of $5.5B — which together constitute approximately 81% of total assets of $13.5B. Under liquidation haircuts (AR at 90-95%, inventory at 60%), these collapse to approximately $9.6B of realizable value from $11.0B of reported current assets, before applying any allowance reserves. Total liabilities at face value are $8.5B, with current liabilities alone at $5.7B including $4.6B of accounts payable and $470M of current debt. Long-term debt noncurrent stands at $2.5B. The liability stack is further complicated by $229M of operating lease obligations (current plus noncurrent at face), $221M of other noncurrent liabilities, and a defined benefit pension obligation that generates net periodic cost — the funded status and gross PBO are not separately tagged in XBRL and must be sourced from the annual filing. Goodwill of $817M is zeroed under the liquidation lens. PP&E net of $651M recovers at 50-70%, or roughly $326M-$456M. The convertible notes issued September 2025 for $650M aggregate principal (due 2030) are embedded in the long-term debt figure and represent a new layer of fixed-rate senior obligation that did not exist in the prior comparable period. This issuance materially shifted the capital structure: net debt increased from the prior quarter as the company used proceeds to reduce the revolving credit facility but simultaneously drew on a term loan of approximately $268M. Cash on hand is thin at $202M (96% held offshore), down from $287M at the prior quarter end. Operating cash flow for the nine months was near breakeven at $9.8M vs. $585M in the prior-year period, driven by $1.5B of working capital build (AR up $1.2B, inventory up $282M) against AP growth of $1.2B, compounded by a $61.4M cash outflow for a Mexico tax audit settlement. The company explicitly noted share repurchases are suspended pending leverage ratio normalization. The $550M 4.63% Notes due April 2026 were repaid post-quarter using the credit facility accordion expansion. Amortization of acquired intangibles is de minimis at $364K per quarter, consistent with prior periods. The filing discusses IEEPA tariff exposure and a U.S. Supreme Court ruling striking those tariffs but does not separately tag tariff-related asset or liability impacts in XBRL.
▼ Community Notes