First Trust Energyome & Growth Fund (First Trust Energyome & Growth Fund) Beneish M-Score

: -0.13 (As of Today)

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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.

Warning Sign:

Beneish M-Score -0.13 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for First Trust Energyome & Growth Fund's Beneish M-Score or its related term are showing as below:

FEN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.19 Med: -1.2 Max: 4.75
Current: -0.13

During the past 13 years, the highest Beneish M-Score of First Trust Energyome & Growth Fund was 4.75. The lowest was -4.19. And the median was -1.20.

First Trust Energyome & Growth 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 First Trust Energyome & Growth 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 * 4.2574

0.528 * 1

0.404 * 1.0282

0.892 * 0.4091

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.6698

4.679 * 0.030864

0.327 * 0.9782

-0.13

* 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 (Nov23) TTM:

Last Year (Nov22) TTM:

Total Receivables was $2.23 Mil.
Revenue was $27.26 Mil.
Gross Profit was $27.26 Mil.
Total Current Assets was $2.23 Mil.
Total Assets was $428.37 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 $0.54 Mil.
Total Current Liabilities was $13.21 Mil.
Long-Term Debt & Capital Lease Obligation was $77.20 Mil.
Net Income was $26.00 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $12.78 Mil.

Total Receivables was $1.28 Mil.
Revenue was $66.63 Mil.
Gross Profit was $66.63 Mil.
Total Current Assets was $13.86 Mil.
Total Assets was $426.94 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 $0.50 Mil.
Total Current Liabilities was $12.91 Mil.
Long-Term Debt & Capital Lease Obligation was $79.20 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)
	=	(2.233 / 27.258)	/	(1.282 / 66.626)
	=	0.081921	/	0.019242
	=	4.2574

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)
	=	(66.626 / 66.626)	/	(27.258 / 27.258)
	=	1	/	1
	=	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 - (2.233 + 0) / 428.369)	/	(1 - (13.857 + 0) / 426.937)
	=	0.994787	/	0.967543
	=	1.0282

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
	=	27.258	/	66.626
	=	0.4091

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))
	=		/
	=	1

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)
	=	(0.544 / 27.258)	/	(0.498 / 66.626)
	=	0.019957	/	0.007475
	=	2.6698

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)
	=	((77.2 + 13.208) / 428.369)	/	((79.2 + 12.91) / 426.937)
	=	0.211052	/	0.215746
	=	0.9782

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
	=	(26.002 - 0	-	12.781)	/	428.369
	=	0.030864

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.

First Trust Energyome & Growth Fund has a M-score of -0.13 signals that the company is likely to be a manipulator.

First Trust Energyome & Growth Fund Beneish M-Score Related Terms

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First Trust Energyome & Growth Fund (First Trust Energyome & Growth Fund) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » First Trust Energy Income & Growth Fund (AMEX:FEN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Westport Road, Suite C101a, Wilton, CT, USA, 06897

Website

https://www.ftportfolios.com

First Trust Energy Income & Growth Fund is a non-diversified, closed-end management investment company. Its investment objectives are to seek a high level of after-tax total return with an emphasis on current distributions paid to shareholders. The company focuses on investing in a portfolio of cash-generating securities of energy companies as well as in other equity securities. In order to earn high income and growth, the company invests in publicly-traded master limited partnerships (MLPs) and related public entities in the energy sector such as midstream oil and gas, coal, propane, and marine transportation.

Executives

Bronwyn Wright	director	FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
M Keefe Denise	director	C/O FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
Kelly Catherine Dehler	other: Officer-Investment Advisor	C/O FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
Scott Michael Friske	other: Officer-Investment Advisor	FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
Nandita Hogan	other: Officer-Investment Sub-Advisor	ENERGY INCOME PARTNERS, LLC, 49 RIVERSIDE AVENUE, WESTPORT CT 06880
John K Tysseland	other: Officer-Investment Sub-Advisor	ENERGY INCOME PARTNERS, LLC, 49 RIVERSIDE AVE., WESTPORT CT 06880
Shane Shannon	officer: Assistant Secretary	FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
Lisa Iantorno	other: Officer-Investment Sub-Advisor	ENERGY INCOME PARTNERS, 49 RIVERSIDE AVENUE, WESTPORT CT 06880
Donald Swade	officer: Assistant Treasurer	C/O FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
Katherine L Urevig	officer: Assistant Treasurer	C/O FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
David Edward Scott	other: CCO - Investment Sub-Advisor	98 MILL PLAIN ROAD, SUITE 4C, DANBURY CT 06811
Rosanne Gatta	officer: Assistant Secretary	FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY STREET, SUITE 400, WHEATON IL 60187
Erin E Klassman	officer: Assistant Secretary	FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, WHEATON IL 60187
Lynch Coleen D	officer: Assistant Vice President	FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187
Kathleen Wieland Brown	other: Officer-Investment Adviser	C/O FIRST TRUST ADVISORS L.P., 120 EAST LIBERTY DRIVE, SUITE 400, WHEATON IL 60187