Franklin Universal Trust (Franklin Universal Trust) Beneish M-Score : 0.00 (As of May. 26, 2024)

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What is Franklin Universal Trust 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 Franklin Universal Trust's Beneish M-Score or its related term are showing as below:

During the past 7 years, the highest Beneish M-Score of Franklin Universal Trust was 2.05. The lowest was 2.05. And the median was 2.05.

Franklin Universal Trust 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 Franklin Universal Trust 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 (Aug23) TTM:

Last Year (Aug22) TTM:

Total Receivables was $3.22 Mil.
Revenue was $-3.01 Mil.
Gross Profit was $-3.01 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $251.48 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 $0.76 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $65.00 Mil.
Net Income was $-3.84 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $11.50 Mil.

Total Receivables was $2.87 Mil.
Revenue was $-6.53 Mil.
Gross Profit was $-6.53 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $269.82 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 $0.79 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $64.97 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)
	=	(3.216 / -3.008)	/	(2.87 / -6.527)
	=		/
	=

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)
	=	(-6.527 / -6.527)	/	(-3.008 / -3.008)
	=		/
	=

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) / 251.477)	/	(1 - (0 + 0) / 269.824)
	=	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
	=	-3.008	/	-6.527
	=

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)
	=	(0.76 / -3.008)	/	(0.79 / -6.527)
	=		/
	=

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)
	=	((64.999 + 0) / 251.477)	/	((64.974 + 0) / 269.824)
	=	0.258469	/	0.240801
	=

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
	=	(-3.838 - 0	-	11.5)	/	251.477
	=	-0.060992

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.

Franklin Universal Trust Beneish M-Score Related Terms

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Franklin Universal Trust (Franklin Universal Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Franklin Universal Trust (NYSE:FT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

One Franklin Parkway, San Mateo, CA, USA, 94403-1906

Website

https://www.franklintempleton.com

Franklin Universal Trust is a closed-end management investment company. Its primary investment objective is to provide high, current income consistent with the preservation of capital. Its secondary objective is the growth of income through dividend increases and capital appreciation. The fund invests in two asset classes being the high yield bonds and utility stocks.

Executives

Metlife Investment Management, Llc	10 percent owner	ONE METLIFE WAY, WHIPPANY NJ 07981
Christine M. Debevec	officer: VP & Assistant Secretary	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Ted P Becker	officer: Chief Compliance Officer	399 PARK AVENUE, 4TH FLOOR, NEW YORK NY 10022
George P. Hoyt	officer: VP & Assistant Secretary	C/O FRANKLIN TEMPLETON, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Oliveira Marc De	officer: VP & Assistant Secretary	C/O LEGG MASON & CO. LLC, ONE FIRST STAMFORD PLACE, STAMFORD CT 06902
Alexander Kymn	officer: VP & Assistant Secretary	WELLS FARGO BANK, 45 FREMONT STREET, 26TH FLOOR, SAN FRANCISCO CA 94105
Harris Goldblat	officer: VP & Assistant Secretary	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Tara E. Gormel	officer: VP & Assistant Secretary	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
J Michael Luttig	other: Trustee	C/O THE BOEING COMPANY, 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Christopher Kings	officer: CFO, CAO and Treasurer	ONE FRANKLIN PARKWAY, SAN MATEO CA 94403
Jeffrey White	officer: Interim CFO, CAO and Treasurer	3355 DATA DRIVE, RANCHO CORDOVA CA 95670
Susan Kerr	officer: VP - AML Compliance	280 PARK AVENUE, NEW YORK NY 10017
Valerie Williams	other: Trustee	C/O OMNICOM GROUP INC., 280 PARK AVENUE, NEW YORK NY 10017
Robert Kubilis	officer: CFO, CAO and Treasurer	FRANKLIN TEMPLETON INVESTMENTS, 300 S.E. 2ND STREET, FORT LAUDERDALE FL 33301-1923
Sonal Desai	officer: Pres. & CEO - Invest. Mgmt.	ONE FRANKLIN PARKWAY, SMO-920/3, SAN MATEO CA 94403