MCVT (Mill City Ventures III) Beneish M-Score : -3.10 (As of Mar. 20, 2025)

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What is Mill City Ventures III 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 -3.1 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Mill City Ventures III's Beneish M-Score or its related term are showing as below:

MCVT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1 Med: -2.1 Max: 14.14
Current: -3.1

During the past 13 years, the highest Beneish M-Score of Mill City Ventures III was 14.14. The lowest was -3.10. And the median was -2.10.

Mill City Ventures III 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 Mill City Ventures III 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 * 0.2114

0.528 * 1

0.404 * 1.0005

0.892 * 1.7668

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3266

4.679 * -0.218922

0.327 * 0

-3.10

* 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 (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $0.19 Mil.
Revenue was 0.705 + 1.009 + 0.946 + 0.909 = $3.57 Mil.
Gross Profit was 0.705 + 1.009 + 0.946 + 0.909 = $3.57 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $20.47 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 $0.99 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -0.091 + 0.464 + 0.413 + 0.382 = $1.17 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2.893 + -2.292 + 4.92 + 0.129 = $5.65 Mil.

Total Receivables was $0.51 Mil.
Revenue was -0.469 + 0.727 + 0.884 + 0.878 = $2.02 Mil.
Gross Profit was -0.469 + 0.727 + 0.884 + 0.878 = $2.02 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $19.11 Mil.
Property, Plant and Equipment(Net PPE) was $0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $1.72 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.01 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)
	=	(0.192 / 3.569)	/	(0.514 / 2.02)
	=	0.053797	/	0.254455
	=	0.2114

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)
	=	(2.02 / 2.02)	/	(3.569 / 3.569)
	=	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) / 20.473)	/	(1 - (0 + 0.009) / 19.107)
	=	1	/	0.999529
	=	1.0005

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
	=	3.569	/	2.02
	=	1.7668

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 + 0.009))	/	(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)
	=	(0.993 / 3.569)	/	(1.721 / 2.02)
	=	0.278229	/	0.85198
	=	0.3266

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) / 20.473)	/	((0.009 + 0) / 19.107)
	=	0	/	0.000471
	=	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
	=	(1.168 - 0	-	5.65)	/	20.473
	=	-0.218922

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.

Mill City Ventures III has a M-score of -3.10 suggests that the company is unlikely to be a manipulator.

Mill City Ventures III Beneish M-Score Related Terms

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Mill City Ventures III Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Mill City Ventures III Ltd (NAS:MCVT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1907 Wayzata Boulevard, Suite 205, Wayzata, MN, USA, 55391

Website

https://www.millcityventures3.com

Mill City Ventures III Ltd is a non-bank lender and specialty finance company. The company is engaged in the business of providing short-term specialty finance solutions primarily to private businesses, micro-and small-cap public companies, and high-net-worth individuals. The principal specialty finance solutions that they provide are high-interest short-term lending arrangements. Typically, these lending arrangements involve obtaining collateral as security for the borrower's repayment of funds, or personal guarantees from the principals or affiliates of the borrower.

Executives

Douglas Michael Polinsky	director, officer: Chief Executive Officer	130 LAKE ST. WEST, WAYZATA MN 55391
Laurence S Zipkin	director	701 XENIA AVE S., SUITE 130, MINNEAPOLIS MN 55416
Geraci Joseph Anthony Ii	director, 10 percent owner, officer: Chief Financial Officer	900 IDS CENTER, 80 S. EIGHT STREET, MINNEAPOLOS MN 55402
Lyle Berman	director	10275 WAYZATA BOULEVARD, SUITE 100, MINNETONKA MN 55305
Howard P Liszt	director	5929 BAKER ROAD, SUITE 475, MINNETONKA MN 55345
Neal Linnihan	10 percent owner	8154 INGBERG CIRCLE, STILLWATER MN 55082
Scott Zbikowski	10 percent owner	109 SW 50TH STREET, CAPE CORAL FL 33914
Chris Larson	director	701 NORTH THIRD STREET, MINNEAPOLIS MN 55401
Joseph D Hammer	director	150 CENTRAL PARK SOUTH, 2ND FLOOR, NEW YORK NY 10019
Amit Sela	10 percent owner	13564 WESTERNESSE ROAD, MINNETONKA MN 55305