Virtus Dividend, Interest & Premium Strategy Fund Owner Earnings per Share (TTM)

Virtus Dividend, Interest & Premium Strategy Fund Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Virtus Dividend, Interest & Premium Strategy Fund does not have enough data to calculate Owner Earnings per Share (TTM). Please check Wal-Mart Stores Inc, as your reference.

Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.

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Virtus Dividend, Interest & Premium Strategy Fund Business Description

Industry

Financial Services » Asset Management NAICS : 523991 SIC : 6733

Comparable Companies

AMEX:EVV NYSE:BST LSE:LWDB ASX:LSF LSE:AGT LSE:GCP NAS:NMFC XSWX:LEON ASX:PPT NYSE:NOAH

Traded in Other Exchanges

N/A

Address

101 Munson Street, Greenfield, MA, USA, 01301

Website

https://www.virtus.com

Virtus Dividend, Interest & Premium Strategy Fund is a Massachusetts-based business trust. Its primary investment objective is to seek current income and gains, with a secondary objective of long-term capital appreciation. The fund pursues its investment objectives by investing in a diversified portfolio of dividend-paying common stocks and income-producing convertible securities.

Executives

Mowrey John R.	other: Portfolio Manager	1633 BROADWAY NEW YORK NY 10019
Oliver Thomas W Jr	other: Affiliated Person	2121 SAN JACINTO DRIVE DALLAS TX 75201
Pushpaharan Gem	other: Affiliated Person	1633 BROADWAY NEW YORK NY 10019
Viggiano John	other: Affiliated Person	1633 BROADWAY NEW YORK NY 10019
Cogan Sarah E	director	1633 BROADWAY NEW YORK NY 10019
Macleod James S	director	250 E KILBOURN AVE MILWAUKEE WI 53202
Parker Jeffrey D	other: See Remarks	1345 AVENUE OF THE AMERICAS NEW YORK NY 10105
Holt Erick	director	1633 BROADWAY NEW YORK NY 10019
Ruckman Craig	officer: Assistant Secretary	1633 BROADWAY NEW YORK NY 10019
Rappaport Alan	director	C/O PIMCO 650 NEWPORT CENTER DRIVE NEWPORT BEACH CA 92660
Magnuson Paul A	other: Portfolio Manager	2121 SAN JACINTO, SUITE 1840 DALLAS TX 75201
Mildner Heiko	other: Affiliated Person	1633 BROADWAY NEW YORK NY 10019
Thompson Kathleen C.	other: Affiliated Person	1633 BROADWAY NEW YORK NY 10019
Fischer Ben J	other: Portfolio Manager	1633 BROADWAY NEW YORK NY 10019
Grau William	other: SEE REMARKS	C/O ALLIANZ GLOBAL INVESTORS U.S. LLC 1633 BROADWAY NEW YORK NY 10019