Market Cap : 1.88 B | Enterprise Value : 2.98 B | PE Ratio : 8.27 | PB Ratio : 1.44 |
---|
NYSE:HTGC has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:HTGC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
During the past 13 years, the highest Beneish M-Score of Hercules Capital was 4.20. The lowest was -4.94. And the median was -1.67.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Hercules Capital's Beneish M-Score falls into.
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 | + | 0.528 * 1 | + | 0.404 * 0.9508 | + | 0.892 * 1.2282 | + | 0.115 * 0.5133 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.8026 | + | 4.679 * 0.0074 | - | 0.327 * 0.9406 | |||||||
= | -2.26 |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
This Year (Dec20) TTM: | Last Year (Dec19) TTM: |
Accounts Receivable was $0.0 Mil. Revenue was 167.151 + 58.041 + 77.323 + -12.01 = $290.5 Mil. Gross Profit was 167.151 + 58.041 + 77.323 + -12.01 = $290.5 Mil. Total Current Assets was $217.4 Mil. Total Assets was $2,624.0 Mil. Property, Plant and Equipment(Net PPE) was $9.3 Mil. Depreciation, Depletion and Amortization(DDA) was $0.4 Mil. Selling, General, & Admin. Expense(SGA) was $18.9 Mil. Total Current Liabilities was $36.3 Mil. Long-Term Debt & Capital Lease Obligation was $1,296.0 Mil. Net Income was 151.172 + 43.047 + 61.765 + -28.723 = $227.3 Mil. Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil. Cash Flow from Operations was 231.817 + -11.247 + 11.934 + -24.702 = $207.8 Mil. |
Accounts Receivable was $0.0 Mil. Revenue was 59.135 + 34.641 + 66.967 + 75.783 = $236.5 Mil. Gross Profit was 59.135 + 34.641 + 66.967 + 75.783 = $236.5 Mil. Total Current Assets was $84.6 Mil. Total Assets was $2,462.0 Mil. Property, Plant and Equipment(Net PPE) was $11.7 Mil. Depreciation, Depletion and Amortization(DDA) was $0.3 Mil. Selling, General, & Admin. Expense(SGA) was $19.2 Mil. Total Current Liabilities was $30.3 Mil. Long-Term Debt & Capital Lease Obligation was $1,298.6 Mil. |
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Accounts Receivable 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 / 290.505) | / | (0 / 236.526) | |
= | 0 | / | 0 | |
= | 1 |
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) | |
= | (236.526 / 236.526) | / | (290.505 / 290.505) | |
= | 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 - (217.359 + 9.278) / 2623.997) | / | (1 - (84.6 + 11.659) / 2461.968) | |
= | 0.91362909 | / | 0.9609016 | |
= | 0.9508 |
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 | |
= | 290.505 | / | 236.526 | |
= | 1.2282 |
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)) |
= | (0.262 / (0.262 + 11.659)) | / | (0.415 / (0.415 + 9.278)) | |
= | 0.02197802 | / | 0.0428144 | |
= | 0.5133 |
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) |
= | (18.91 / 290.505) | / | (19.183 / 236.526) | |
= | 0.06509354 | / | 0.08110313 | |
= | 0.8026 |
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) |
= | ((1295.95 + 36.343) / 2623.997) | / | ((1298.613 + 30.306) / 2461.968) | |
= | 0.50773419 | / | 0.53977915 | |
= | 0.9406 |
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 | |
= | (227.261 - 0 | - | 207.802) | / | 2623.997 | |
= | 0.0074 |
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 -2.26 suggests that the company is unlikely to be a manipulator.
No Headline