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KBDC (Kayne Anderson BDC) Beneish M-Score : -0.99 (As of Jun. 18, 2025)


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What is Kayne Anderson BDC 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.

Warning Sign:

Beneish M-Score -0.99 higher than -1.78, which implies that the company might have manipulated its financial results.

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

KBDC' s Beneish M-Score Range Over the Past 10 Years
Min: -0.99   Med: -0.58   Max: -0.34
Current: -0.99

During the past 4 years, the highest Beneish M-Score of Kayne Anderson BDC was -0.34. The lowest was -0.99. And the median was -0.58.


Kayne Anderson BDC 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 Kayne Anderson BDC for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8574+0.528 * 1+0.404 * 1+0.892 * 1.2853+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1441+4.679 * 0.317018-0.327 * 1.2695
=-0.99

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was $17.5 Mil.
Revenue was 23.476 + 32.824 + 32.831 + 28.568 = $117.7 Mil.
Gross Profit was 23.476 + 32.824 + 32.831 + 28.568 = $117.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,230.5 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General, & Admin. Expense(SGA) was $4.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,003.0 Mil.
Net Income was 22.215 + 35.449 + 37.556 + 31.18 = $126.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -127.24 + -49.079 + -117.635 + -286.755 = $-580.7 Mil.
Total Receivables was $15.8 Mil.
Revenue was 29.534 + 24.397 + 15.305 + 22.338 = $91.6 Mil.
Gross Profit was 29.534 + 24.397 + 15.305 + 22.338 = $91.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $1,844.4 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General, & Admin. Expense(SGA) was $3.1 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $653.4 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)
=(17.46 / 117.699) / (15.844 / 91.574)
=0.148345 / 0.173019
=0.8574

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)
=(91.574 / 91.574) / (117.699 / 117.699)
=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) / 2230.5) / (1 - (0 + 0) / 1844.441)
=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
=117.699 / 91.574
=1.2853

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)
=(4.485 / 117.699) / (3.05 / 91.574)
=0.038106 / 0.033306
=1.1441

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)
=((1003.039 + 0) / 2230.5) / ((653.361 + 0) / 1844.441)
=0.449692 / 0.354233
=1.2695

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
=(126.4 - 0 - -580.709) / 2230.5
=0.317018

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.

Kayne Anderson BDC has a M-score of -0.99 signals that the company is likely to be a manipulator.


Kayne Anderson BDC Beneish M-Score Related Terms

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Kayne Anderson BDC Business Description

Traded in Other Exchanges
N/A
Address
717 Texas Avenue, Suite 2200, Houston, TX, USA, 77002
Kayne Anderson BDC Inc is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company that invests primarily in first-lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle-market companies. Its investment objective is to generate current income and, to a lesser extent, capital appreciation primarily through debt investments in middle-market companies.