Western Asset Global High Fd Beneish M-Score

Western Asset Global High Fd 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 Global High Fd for today is based on a combination of the following eight different indices:

* 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.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

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.

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.

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.

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.

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.

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

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

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 Global High Fd Beneish M-Score Related Terms

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Western Asset Global High Fd Business Description

Industry

Financial Services » Asset Management NAICS : 523930 SIC : 6282

Comparable Companies

NYSE:INSI XKRX:021080 LSE:MGCI NYSE:SPE BSP:PEAB3 SGX:B73 LSE:ASIT NYSE:IDE NYSE:PIM XTAE:EMDV

Traded in Other Exchanges

N/A

Address

620 Eighth Avenue, 49th Floor, New York, NY, USA, 10018

Website

https://www.leggmason.com

Western Asset Global High Inc Fd Inc is a non-diversified, closed-end management investment company. Its investment objective is high current income and total return by investing in a global portfolio of securities. The fund invests in various sectors such as Consumer Discretionary, Energy, Healthcare, Industrials, materials, and others.

Executives

Fergerson Laura F	other: Manager/Investment Manager	3310 QUALITY DRIVE 2ND FLOOR RANCHO CORDOVA CA 95670
Eakes Brian	other: Manager/Investment Manager	100 INTERNATIONAL DRIVE BALTIMORE MD 21202
Hoyt George P.	officer: Secretary and Ch Lgl Officer	C/O FRANKLIN TEMPLETON 100 FIRST STAMFORD PLACE STAMFORD CT 06902
Nicholls Matthew	other: Director of Sub-Adviser	ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Bolt Jennifer J	other: Director of Sub-Adviser	C/O FRANKLIN RESOURCES, INC. ONE FRANKLIN PARKWAY SAN MATEO CA 94403-1906
Plafker Jed A.	other: Director of Sub-Adviser	ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Saba Capital Management, L.p.	10 percent owner	405 LEXINGTON AVENUE 58TH FLOOR NEW YORK NY 10174
Weinstein Boaz	10 percent owner	405 LEXINGTON AVENUE 58TH FLOOR NEW YORK NY 10174
Jensen Fred Steven	officer: Chief Compliance Officer	LEGG MASON 620 EIGHTH AVENUE, 49TH FLOOR NEW YORK NY 10018
Cronin Daniel P	director	235 EAST 42ND ST NEW YORK NY 10017
Hutchinson William R	director	535 N MICHIGAN STE 1012 CHICAGO IL 60611
Berarducci Christopher	officer: Treas/Principal Finan Officer	LEGG MASON 620 EIGHTH AVENUE NEW YORK NY 10018
Kumar Nisha	director	1735 MARKET STREET 32ND FLOOR PHILADELPHIA PA 19103
Berg Jennifer S	officer: Treasurer	100 INTERNATIONAL DRIVE 7TH FLOOR BALTIMORE MD 21202
Kuehl Todd F	officer: Chief Compliance Officer	1555 PEACHTREE STREET NE ATLANTA 2Q 30309