Prospect Capital (LTS:0R25) Beneish M-Score: 0.00 (As of Jul. 14, 2026)

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LTS:0R25 Prospect Capital Corp LTS:0R25
28 GF Score
Price $2.25
! 1 Warning Sign
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What is Prospect Capital Beneish M-Score?

Prospect Capital LTS:0R25 28 Beneish M-Score is 0.00 as of Jul. 14, 2026. GuruFocus rates LTS:0R25 with a GF Score™ of 28/100. The stock has 1 warning sign investors should review. Among 953 Asset Management companies, Prospect Capital ranks worse than 104931.69% on this metric.

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 Prospect Capital's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Prospect Capital was 44.45. The lowest was -4.74. And the median was -2.07.

LTS:0R25
28GF Score
Prospect Capital Corp LTS:0R25
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Prospect 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 Prospect Capital 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 * +0.528 * +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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $27.82 Mil.
Revenue was 66.68 + 28.921 + 91.943 + -179.931 = $7.61 Mil.
Gross Profit was 66.68 + 28.921 + 91.943 + -179.931 = $7.61 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $6,383.97 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 $35.83 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1,731.96 Mil.
Net Income was 56.479 + 23.719 + 77.981 + -195.93 = $-37.75 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 195.659 + 85.602 + 278.992 + -7.632 = $552.62 Mil.
 Total Receivables was $18.86 Mil.
Revenue was -124.485 + 14.824 + -117.344 + 44.227 = $-182.78 Mil.
Gross Profit was -124.485 + 14.824 + -117.344 + 44.227 = $-182.78 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $6,996.31 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 $44.98 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $2,027.99 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)
=(27.815 / 7.613) / (18.856 / -182.778)
=3.653619 /
=

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)
=(-182.778 / -182.778) / (7.613 / 7.613)
= / 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) / 6383.972) / (1 - (0 + 0) / 6996.312)
=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
=7.613 / -182.778
=

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)
=(35.825 / 7.613) / (44.978 / -182.778)
=4.705766 /
=

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)
=((1731.963 + 0) / 6383.972) / ((2027.992 + 0) / 6996.312)
=0.271299 / 0.289866
=

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
=(-37.751 - 0 - 552.621) / 6383.972
=-0.092477

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.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.00 mean?
Prospect Capital (LTS:0R25) has a Beneish M-Score of 0.00 as of Jul. 14, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Prospect Capital and its competitors. According to the industry distribution chart, Prospect Capital ranks #999999 out of 953 companies in the Asset Management industry.
Is Prospect Capital's Beneish M-Score too high?
Prospect Capital's current Beneish M-Score is 0.00. Based on the distribution chart, Prospect Capital ranks #999999 out of 953 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Prospect Capital has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Prospect Capital's Beneish M-Score compare to FRBP and CRF?
According to the Asset Management industry distribution chart, Prospect Capital ranks #999999 out of 953 companies for Beneish M-Score. This places Prospect Capital in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Asset Management company?
A good Beneish M-Score depends on the Asset Management industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Prospect Capital and its competitors. Prospect Capital's current Beneish M-Score is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Capital stock overvalued right now?
Prospect Capital (LTS:0R25) has a current Beneish M-Score of 0.00. The current Beneish M-Score is 0.00. Prospect Capital's overall GF Score™ is 28/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Prospect Capital (LTS:0R25), the current Beneish M-Score is 0.00 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Prospect Capital Business Description

Other Exchanges PSEC:USARK8:Germany
Address 10 East 40th Street, 42nd Floor, New York, NY, USA, 10016
Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests mainly in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.
28GF Score

Get the complete analysis for LTS:0R25

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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