Miller/Howard Highome Equity Fund (Miller/Howard Highome Equity Fund) Beneish M-Score : -4.71 (As of May. 23, 2024)

View and export this data going back to . Start your Free Trial

What is Miller/Howard Highome Equity Fund 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.

Good Sign:

Beneish M-Score -4.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Miller/Howard Highome Equity Fund's Beneish M-Score or its related term are showing as below:

HIE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.71 Med: -2.84 Max: -0.96
Current: -4.71

During the past 7 years, the highest Beneish M-Score of Miller/Howard Highome Equity Fund was -0.96. The lowest was -4.71. And the median was -2.84.

Miller/Howard Highome Equity 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 Miller/Howard Highome Equity 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 * 0.4748

0.528 * 1

0.404 * 1

0.892 * 0.3082

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.6422

4.679 * -0.250033

0.327 * 0

-4.71

* 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 (Oct23) TTM:

Last Year (Oct22) TTM:

Total Receivables was $0.84 Mil.
Revenue was $3.17 Mil.
Gross Profit was $3.17 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $216.53 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 $1.14 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was $1.99 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $56.13 Mil.

Total Receivables was $5.73 Mil.
Revenue was $10.27 Mil.
Gross Profit was $10.27 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $302.61 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 $1.40 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $44.50 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)
	=	(0.838 / 3.165)	/	(5.726 / 10.269)
	=	0.264771	/	0.557601
	=	0.4748

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)
	=	(10.269 / 10.269)	/	(3.165 / 3.165)
	=	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 - (0 + 0) / 216.527)	/	(1 - (0 + 0) / 302.605)
	=	1	/	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
	=	3.165	/	10.269
	=	0.3082

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)
	=	(1.136 / 3.165)	/	(1.395 / 10.269)
	=	0.358926	/	0.135846
	=	2.6422

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)
	=	((0 + 0) / 216.527)	/	((44.5 + 0) / 302.605)
	=	0	/	0.147056
	=	0

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
	=	(1.992 - 0	-	56.131)	/	216.527
	=	-0.250033

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.

Miller/Howard Highome Equity Fund has a M-score of -4.71 suggests that the company is unlikely to be a manipulator.

Miller/Howard Highome Equity Fund Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Miller/Howard Highome Equity Fund's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Miller/Howard Highome Equity Fund (Miller/Howard Highome Equity Fund) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Miller/Howard High Income Equity Fund (NYSE:HIE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

45 Pine Grove Avenue, Suite 301, Kingston, NY, USA, 12401

Website

https://www.mhinvest.com

Miller/Howard High Income Equity Fund is a closed-end, diversified management investment company. The fund's primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. It invests under normal market conditions, a majority of its total assets in dividend or distribution paying equity securities of U.S. companies and non-U.S. companies traded on U.S. exchanges. Its portfolio of investments consists of securities of different sectors such as Natural Gas Transmission, Real Estate Investment Trusts, Petroleum Refining, Oil and Gas Extraction, Electric Services and others.

Executives

Saba Capital Management, L.p.	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Boaz Weinstein	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Paul Charles Kazarian	director	C/O SABA CAPITAL MANAGEMENT, L.P., 405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
James E Hillman	director	10 DIXON AVENUE, WOODSTOCK NY 12498
Eva M Horowitz	officer: Secretary	45 PINE GROVE AVENUE, SUITE 301, KINGSTON NY 12401
Sacco Mayra	director	10 DIXON AVE, WOODSTOCK NY 12498
Catherine Mari Johnston	director, officer: President	10 DIXON AVE, WOODSTOCK NY 12498
Dana Troxell	officer: President	C/O MILLER/HOWARD HIGH EQUITY INCOME FND, P.O. BOX 549, WOODSTOCK NY 12498
Lowell Miller	officer: Chief Executive Officer	PO BOX 549, WOODSTOCK NY 12498
Roger Conrad	director	3516 HALCYON DRIVE, ALEXANDRIA VA 22305
Charles I Leone	director	C/O US WIRELESS DATA INC, 805 THIRD AVENUE, NEW YORK NY 10022
Paul Brook	officer: Chief Compliance Officer	MILLER/HOWARD HIGH EQUITY INCOME FUND, P.O. BOX 549, WOODSTOCK NY 12498
Helen Hamada	officer: Chief Financial Officer	PO BOX 549, WOODSTOCK NY 12498
Annemarie Gilly	officer: Chief Operating Officer	PO BOX 549, WOODSTOCK NY 12498
Leslie John E Iii	officer: Vice President	MILLER/HOWARD HIGH EQUITY INCOME FUND, P.O. BOX 549, WOODSTOCK NY 12498