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NMFC (New Mountain Finance) Beneish M-Score : -2.29 (As of Dec. 12, 2024)


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What is New Mountain Finance 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 -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NMFC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.2   Med: -1.73   Max: 10.72
Current: -2.29

During the past 13 years, the highest Beneish M-Score of New Mountain Finance was 10.72. The lowest was -4.20. And the median was -1.73.


New Mountain Finance 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 New Mountain Finance 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 * 1.1251+0.528 * 1+0.404 * 1+0.892 * 0.8974+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1457+4.679 * 0.041155-0.327 * 1.0133
=-2.29

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $46.0 Mil.
Revenue was 26.688 + 37.049 + 30.321 + 30.566 = $124.6 Mil.
Gross Profit was 26.688 + 37.049 + 30.321 + 30.566 = $124.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $3,414.3 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 $10.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,993.0 Mil.
Net Income was 23.889 + 34.471 + 27.408 + 27.244 = $113.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -61.58 + -159.883 + 68.279 + 125.683 = $-27.5 Mil.
Total Receivables was $45.6 Mil.
Revenue was 29.155 + 37.477 + 46.477 + 25.762 = $138.9 Mil.
Gross Profit was 29.155 + 37.477 + 46.477 + 25.762 = $138.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $3,279.6 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 $10.2 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,889.2 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)
=(46.044 / 124.624) / (45.602 / 138.871)
=0.369463 / 0.328377
=1.1251

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)
=(138.871 / 138.871) / (124.624 / 124.624)
=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) / 3414.256) / (1 - (0 + 0) / 3279.586)
=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
=124.624 / 138.871
=0.8974

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)
=(10.454 / 124.624) / (10.168 / 138.871)
=0.083884 / 0.073219
=1.1457

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)
=((1992.97 + 0) / 3414.256) / ((1889.157 + 0) / 3279.586)
=0.58372 / 0.576035
=1.0133

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
=(113.012 - 0 - -27.501) / 3414.256
=0.041155

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.

New Mountain Finance has a M-score of -2.29 suggests that the company is unlikely to be a manipulator.


New Mountain Finance Beneish M-Score Related Terms

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New Mountain Finance Business Description

Traded in Other Exchanges
Address
1633 Broadway, 48th Floor, New York, NY, USA, 10019
New Mountain Finance Corp is a closed-end, non-diversified management investment company. It invests in equity interests such as preferred stock, common stock, warrants, or options received in connection with debt investments or may include direct investment in the equity of private companies. The company's investment objective is to generate current income and capital appreciation through sourcing and origination of debt securities at all levels of the capital structure, including first and second-lien debt, notes, bonds, and mezzanine securities.
Executives
Steven B Klinsky director C/O NEW MOUNTAIN CAPITAL, L.L.C., 1633 BROADWAY, 48TH FLOOR, NEW YORK NY 10019
John Kline officer: Section 16 Officer C/O NEW MOUNTAIN FINANCE CORPORATION, 787 7TH AVENUE, 48TH FLOOR, NEW YORK NY 10019
Adam Weinstein officer: Chief Financial Officer C/O NEW MOUNTAIN FINANCE CORPORATION, 787 7TH AVENUE, 48TH FLOOR, NEW YORK NY 10019
David Ogens director C/O NEW MOUNTAIN FINANCE CORPORATION, 787 7TH AVENUE, 48TH FLOOR, NEW YORK NY 10019
Robert Hamwee officer: CEO & President C/O NEW MOUNTAIN FINANCE CORPORATION, 787 7TH AVENUE, 48TH FLOOR, NEW YORK NY 10019
Barbara Daniel director 1633 BROADWAY, 48TH FLOOR, NEW YORK NY 10019
Laura Holson Boswerger officer: Chief Operating Officer 1633 BROADWAY, 48TH FLOOR, NEW YORK NY 10019
James Stone officer: Section 16 Officer C/O NEW MOUNTAIN FINANCE CORPORATION, 787 7TH AVENUE, 48TH FLOOR, NEW YORK NY 10019
Arnold Rome G. Iii director 24 GRAMERCY PARK SOUTH, NEW YORK NY 10003
Joseph Hartswell officer: Chief Compliance Officer 599 LEXINGTON AVENUE, NEW YORK NY 10022
Shiraz Kajee officer: CFO & Treasurer 500 PARK AVENUE, NEW YORK NY 10022
Alice Handy director C/O MSCI, INC., 88 PINE STREET, NEW YORK NY 10005
Karrie J. Jerry officer: CCO and Corporate Secretary C/O NEW MOUNTAIN FINANCE CORPORATION, 787 SEVENTH AVENUE, NEW YORK NY 10019
Daniel B Hebert director TRI-ARTISAN PARTNERS, 590 MADISON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Kurt Wolfgruber director C/O NEW MOUNTAIN FINANCE CORPORATION, 787 7TH AVENUE, 48TH FLOOR, NEW YORK NY 10019