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HTGC (Hercules Capital) Beneish M-Score : -2.18 (As of Jul. 16, 2025)


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What is Hercules 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 -2.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HTGC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.46   Med: -1.77   Max: 4.8
Current: -2.18

During the past 13 years, the highest Beneish M-Score of Hercules Capital was 4.80. The lowest was -2.46. And the median was -1.77.


Hercules 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 Hercules 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 * 1.2779+0.528 * 1+0.404 * 1.001+0.892 * 0.7316+0.115 * 0.7935
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3527+4.679 * 0.079811-0.327 * 1.032
=-2.18

* 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 $33.1 Mil.
Revenue was 72.707 + 82.251 + 90.425 + 65.338 = $310.7 Mil.
Gross Profit was 72.707 + 82.251 + 90.425 + 65.338 = $310.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,031.2 Mil.
Property, Plant and Equipment(Net PPE) was $16.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.4 Mil.
Selling, General, & Admin. Expense(SGA) was $19.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,993.8 Mil.
Net Income was 50.337 + 61.439 + 68.711 + 41.852 = $222.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -222.197 + -29.244 + 92.555 + 59.492 = $-99.4 Mil.
Total Receivables was $35.4 Mil.
Revenue was 115.731 + 139.354 + 51.489 + 118.122 = $424.7 Mil.
Gross Profit was 115.731 + 139.354 + 51.489 + 118.122 = $424.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $3,696.0 Mil.
Property, Plant and Equipment(Net PPE) was $18.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $19.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,771.4 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)
=(33.096 / 310.721) / (35.399 / 424.696)
=0.106514 / 0.083351
=1.2779

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)
=(424.696 / 424.696) / (310.721 / 310.721)
=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 + 16.309) / 4031.211) / (1 - (0 + 18.579) / 3696.033)
=0.995954 / 0.994973
=1.001

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
=310.721 / 424.696
=0.7316

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))
=(0.332 / (0.332 + 18.579)) / (0.369 / (0.369 + 16.309))
=0.017556 / 0.022125
=0.7935

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)
=(19.426 / 310.721) / (19.628 / 424.696)
=0.062519 / 0.046217
=1.3527

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)
=((1993.834 + 0) / 4031.211) / ((1771.397 + 0) / 3696.033)
=0.494599 / 0.47927
=1.032

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
=(222.339 - 0 - -99.394) / 4031.211
=0.079811

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.

Hercules Capital has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.


Hercules Capital Beneish M-Score Related Terms

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Hercules Capital Business Description

Traded in Other Exchanges
Address
1 North B Street, Suite 2000, San Mateo, CA, USA, 94401
Hercules Capital Inc is a specialty finance company that provides senior secured loans to high-growth, venture capital-backed companies in various technology, life sciences, and sustainable and renewable technology industries. It invests majorly in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The company lends to and invests in portfolio companies in various technology-related industries, including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology.
Executives
Nikos Theodosopoulos director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Deanne Aguirre director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Wade Loo director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Robert P Badavas director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO IL 94301
Gayle A Crowell director
Thomas J Fallon director C/O INFINERA CORPORATION, 140 CASPIAN COURT, SUNNYVALE CA 94089
Scott Bluestein officer: Chief Investment Officer 303 COLUMBUS AVENUE, APT 506, BOSTON MA 02116
Paramjeet K Randhawa director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Christian Follmann officer: Chief Operating Officer C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Kiersten Zaza Botelho officer: General Counsel & CCO C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Carol L Foster director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Seth H Meyer officer: Chief Financial Officer C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Jorge Titinger director 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Doreen Woo Ho director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO CA 94301
Waldt Gerard R Jr. officer: Interim Chief Accounting Off 400 HAMILTON AVENUE SUITE 310, PALO ALTO CA 94301