MVC Capital (MVC Capital) Beneish M-Score : -2.36 (As of Apr. 25, 2024)

View and export this data going back to 1993. Start your Free Trial

What is MVC Capital 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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for MVC Capital's Beneish M-Score or its related term are showing as below:

MVC' s Beneish M-Score Range Over the Past 10 Years
Min: -16.23 Med: -2.36 Max: 0.4
Current: -2.36

During the past 13 years, the highest Beneish M-Score of MVC Capital was 0.40. The lowest was -16.23. And the median was -2.36.

MVC Capital 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 MVC Capital 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 (Jul20) TTM:

Last Year (Jul19) TTM:

Total Receivables was $8.06 Mil.
Revenue was -0.686 + -39.516 + 5.087 + 3.801 = $-31.31 Mil.
Gross Profit was -0.686 + -39.516 + 5.087 + 3.801 = $-31.31 Mil.
Total Current Assets was $54.89 Mil.
Total Assets was $281.57 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 $5.84 Mil.
Total Current Liabilities was $4.28 Mil.
Long-Term Debt & Capital Lease Obligation was $96.60 Mil.
Net Income was -2.537 + -40.332 + 4.416 + 3.057 = $-35.40 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 4.269 + 43.294 + 36.752 + -0.141 = $84.17 Mil.

Total Receivables was $6.99 Mil.
Revenue was 0.692 + 16.32 + -2.222 + -1.974 = $12.82 Mil.
Gross Profit was 0.692 + 16.32 + -2.222 + -1.974 = $12.82 Mil.
Total Current Assets was $23.84 Mil.
Total Assets was $369.23 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 $4.27 Mil.
Total Current Liabilities was $5.67 Mil.
Long-Term Debt & Capital Lease Obligation was $135.47 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)
	=	(8.06 / -31.314)	/	(6.994 / 12.816)
	=		/	0.545724
	=

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)
	=	(12.816 / 12.816)	/	(-31.314 / -31.314)
	=	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 - (54.888 + 0) / 281.57)	/	(1 - (23.837 + 0) / 369.233)
	=	0.805064	/	0.935442
	=

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
	=	-31.314	/	12.816
	=

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)
	=	(5.843 / -31.314)	/	(4.265 / 12.816)
	=		/	0.332787
	=

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)
	=	((96.599 + 4.276) / 281.57)	/	((135.466 + 5.672) / 369.233)
	=	0.358259	/	0.382246
	=

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
	=	(-35.396 - 0	-	84.174)	/	281.57
	=	-0.424655

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.

MVC Capital Beneish M-Score Related Terms

Thank you for viewing the detailed overview of MVC Capital's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

MVC Capital (MVC Capital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » MVC Capital Inc (NYSE:MVC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

287 Bowman Avenue, 2nd Floor, Purchase, NY, USA, 10577

Website

http://www.mvccapital.com

MVC Capital, Inc. is a non-diversified closed-end management investment company. It provides equity and debt investment capital to fund growth, acquisitions, and recapitalizations of small and middle-market companies in a variety of industries located in the United States. The company's investment objective is to seek to maximize total return from capital appreciation and/or income. Its operating segment includes MVC Cayman and MVC Turf. The company generates maximum revenue from the MVC Cayman segment. It has investments in various sectors, including energy, specialty chemicals, automotive dealerships, electrical engineering, medical devices, industrial manufacturing, financial services, and information technology.

Executives

Ron Jonathan Avni	director	4015 SPEEDWAY APT. 9 AUSTIN TX 78751
John D. Chapman	director	1O LIBERTY STREET,#45A NEW YORK NY 1OOO5
Arthur D Lipson	director	C/O WESTERN INVESTMENT LLC, POB 71869, SALT LAKE CITY UT 84171
Gerald Hellerman	director	5431 NW 21ST AVE., BOCA RATON FL 33496
Michael T Tokarz	director, officer: Chairman	287 BOWMAN AVENUE, SUITE 331, PURCHASE NY 10577
Phillip Goldstein	director	60 HERITAGE DRIVE, PLEASANTVILLE NY 10570
Douglas Kass	director	C/O EMPIRE RESOURCES, INC., ONE PARKER PLAZA, FORT LEE NJ 07024
Scott D Krase	director	287 BOWMAN AVENUE 2ND FLOOR PURCHASE NY 10577
Warren Holtsberg	director	287 BOWMAN AVENUE 2ND FLOOR PURCHASE NY 10577
Emilia Dominianni	director	C/O MEVC DRAPER FRISHER SURVETSON FUND 3000 SANDHILL ROAD MENLO PARK CA 94025
Robert C Knapp	director	C/O IRONSIDES PARTNERS LLC, 100 SUMMER STREET, SUITE 2705, BOSTON MA 02110
Kevin M. Byrne	officer: Chief Compliance Officer	287 BOWMAN AVENUE PURCHASE NY 10577-2568
Bruce W Shewmaker	officer: Managing Director	12 BRIAR WOOD DRIVE, SHORT HILLS NJ 07078
Scott Schuenke	officer: CFO and CCO	10801 MASTIN BLVD, OLVERLAND PARK KS 66210
Peter Faust Seidenberg	officer: Chief Financial Officer	C/O MVC CAPITAL INC. 287 BOWMAN AVENUE 2ND FLOOR NEW YORK NY 10577