Virtus Global Multi-Sector (Virtus Global Multi-Sector) Beneish M-Score : 0.00 (As of May. 26, 2024)

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What is Virtus Global Multi-Sector 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 Virtus Global Multi-Sector's Beneish M-Score or its related term are showing as below:

During the past 7 years, the highest Beneish M-Score of Virtus Global Multi-Sector was -2.38. The lowest was -2.49. And the median was -2.44.

Virtus Global Multi-Sector 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 Virtus Global Multi-Sector 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 (Nov23) TTM:

Last Year (Nov22) TTM:

Total Receivables was $2.87 Mil.
Revenue was $5.60 Mil.
Gross Profit was $5.60 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $140.94 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 $0.31 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $43.00 Mil.
Net Income was $5.28 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $15.49 Mil.

Total Receivables was $2.62 Mil.
Revenue was $-19.61 Mil.
Gross Profit was $-19.61 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $148.89 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 $0.41 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $45.40 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)
	=	(2.872 / 5.599)	/	(2.62 / -19.61)
	=	0.512949	/
	=

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)
	=	(-19.61 / -19.61)	/	(5.599 / 5.599)
	=		/	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) / 140.937)	/	(1 - (0 + 0) / 148.893)
	=	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
	=	5.599	/	-19.61
	=

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)
	=	(0.311 / 5.599)	/	(0.413 / -19.61)
	=	0.055546	/
	=

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)
	=	((43 + 0) / 140.937)	/	((45.4 + 0) / 148.893)
	=	0.305101	/	0.304917
	=

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
	=	(5.275 - 0	-	15.491)	/	140.937
	=	-0.072486

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.

Virtus Global Multi-Sector Beneish M-Score Related Terms

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Virtus Global Multi-Sector (Virtus Global Multi-Sector) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Virtus Global Multi-Sector Inc (NYSE:VGI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

101 Munson Street, Greenfield, MA, USA, 01301-9683

Website

https://www.virtus.com

Virtus Global Multi-Sector Inc is a United States-based diversified, closed-end management investment company. Its investment objective is to maximize current income while preserving capital. The Fund seeks to achieve its investment objectives by capitalizing on opportunities across undervalued areas of the global bond markets.

Executives

Mcdaniel Connie D	director	C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103
Sarah E Cogan	director	1633 BROADWAY, NEW YORK NY 10019
F Ford Drummond	director	100 N BROADWAY, OKLAHOMA CITY OK 73102
Deborah A Decotis	director	1633 BROADWAY, NEW YORK NY 10019
Richard W Smirl	officer: EVP	C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, HARTFORD CT 06103
R Keith Walton	director	100 PEARL STREET, HARTFORD CT 06103
John R Mallin	director	C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103
Sidney E Harris	director	C/O VIRTUS INVESTMENT PARTNERS, INC., ONE FINANCIAL PLAZA, 26TH FL., HARTFORD CT 06103
Geraldine M Mcnamara	director	150 EAST 44TH ST, APT 35G, NEW YORK NY 10017
Donald C Burke	director	C/O BLACKROCK FINANCIAL MANAGEMENT, INC., 40 EAST 52ND STREET, NEW YORK NY 10022
Brian T Zino	director	100 PARK AVENUE, NEW YORK NY 10017
Rogers James B Jr	director	14 WESLEY STREET, HAMILTON D0 HM11
James M Oates	director	C/O INVESTORS FINANCIAL SERVICES CORP, 200 CLARENDON ST, BOSTON MA 02116
Thomas F. Mann	director	125 EAST ELM STREET, SUITE 200, CONSHOHOCKEN PA 19428
Benjamin Caron	other: Officer of the Sub-Adviser	C/O NEWFLEET ASSET MANAGEMENT, LLC, 100 PEARL STREET, HARTFORD CT 06103