Western Asset Premier Bond Fund (Western Asset Premier Bond Fund) Beneish M-Score : 0.00 (As of May. 07, 2024)

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What is Western Asset Premier Bond Fund Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

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.

The historical rank and industry rank for Western Asset Premier Bond Fund's Beneish M-Score or its related term are showing as below:

During the past 7 years, the highest Beneish M-Score of Western Asset Premier Bond Fund was 0.28. The lowest was -3.57. And the median was -1.65.

Western Asset Premier Bond Fund 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 Western Asset Premier Bond Fund for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* 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 (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2.97 Mil.
Revenue was $12.75 Mil.
Gross Profit was $12.75 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $185.77 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.29 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $48.97 Mil.
Net Income was $12.41 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $29.46 Mil.

Total Receivables was $2.76 Mil.
Revenue was $-26.91 Mil.
Gross Profit was $-26.91 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $203.11 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.23 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $69.11 Mil.

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)
	=	(2.965 / 12.749)	/	(2.755 / -26.911)
	=	0.232567	/
	=

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)
	=	(-26.911 / -26.911)	/	(12.749 / 12.749)
	=		/	1
	=

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 - (0 + 0) / 185.767)	/	(1 - (0 + 0) / 203.106)
	=	1	/	1
	=

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
	=	12.749	/	-26.911
	=

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))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=

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)
	=	(0.291 / 12.749)	/	(0.233 / -26.911)
	=	0.022825	/
	=

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)
	=	((48.969 + 0) / 185.767)	/	((69.105 + 0) / 203.106)
	=	0.263604	/	0.340241
	=

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
	=	(12.408 - 0	-	29.464)	/	185.767
	=	-0.091814

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.

Western Asset Premier Bond Fund Beneish M-Score Related Terms

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Western Asset Premier Bond Fund (Western Asset Premier Bond Fund) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Western Asset Premier Bond Fund (NYSE:WEA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

620 Eighth Avenue, 47th Floor, New York, NY, USA, 10018

Website

http://www.lmcef.com

Western Asset Premier Bond Fund is a diversified, closed-end management investment company. Its investment objective is to provide current income and capital appreciation by investing in a diversified portfolio of investment-grade bonds. The Fund invests in sectors, such as financials, energy, telecommunication services, consumer discretionary, healthcare, materials, information technology, and consumer staples.

Executives

Ronald L Olson	director	EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Siart William E B	director	266 TOYOPA DRIVE, PACIFIC PALISADES CA 90272
Hoffmann Courtney A.	other: Secretary/GC Subadviser	WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Andrew J. Bowden	other: COO/Subadviser	WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101
Oliveira Marc De	officer: Secretary / Chief LGL Officer	C/O LEGG MASON & CO. LLC, ONE FIRST STAMFORD PLACE, STAMFORD CT 06902
Jed A. Plafker	other: Director of Investment Adviser	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Matthew Nicholls	other: Director of Investment Adviser	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Jennifer M Johnson	other: Director of Investment Adviser	C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403-1906
Michael Larson	director	2365 CARILLON POINT, KIRKLAND WA 98033
Susan B Kerley	director	51 MADISON AVENUE, NEW YORK NY 10010
Jane F Dasher	director	KORSNAT PARTNERS, 283 GREENWICH AVE 3RD FL, GREENWICH CT 06830
Christopher Berarducci	officer: Treas/Principal Finan Officer	LEGG MASON, 620 EIGHTH AVENUE, NEW YORK NY 10018
Ted P Becker	officer: Chief Compliance Officer	399 PARK AVENUE, 4TH FLOOR, NEW YORK NY 10022
Peter J. Taylor	director	2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Thomas C Merchant	other: Director of Subadviser	LEGG MASON, INC., 100 INTERNATIONAL DRIVE, BALTIMORE MD 21202