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Blue Owl Capital (Blue Owl Capital) Beneish M-Score : -2.31 (As of May. 05, 2024)


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What is Blue Owl 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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OBDC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.31   Med: -1.43   Max: 0.63
Current: -2.31

During the past 8 years, the highest Beneish M-Score of Blue Owl Capital was 0.63. The lowest was -2.31. And the median was -1.43.


Blue Owl 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 Blue Owl 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 * 0.6662+0.528 * 1+0.404 * 0.9819+0.892 * 1.6137+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.69+4.679 * -0.025334-0.327 * 0.9796
=-2.31

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $135.2 Mil.
Revenue was 205.439 + 225.387 + 215.761 + 217.737 = $864.3 Mil.
Gross Profit was 205.439 + 225.387 + 215.761 + 217.737 = $864.3 Mil.
Total Current Assets was $707.8 Mil.
Total Assets was $13,511.4 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 $27.9 Mil.
Total Current Liabilities was $230.2 Mil.
Long-Term Debt & Capital Lease Obligation was $7,077.1 Mil.
Net Income was 188.967 + 206.938 + 195.562 + 201.842 = $793.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 413.858 + 178.94 + 496.538 + 46.275 = $1,135.6 Mil.
Total Receivables was $125.8 Mil.
Revenue was 213.071 + 281.147 + -18.383 + 59.791 = $535.6 Mil.
Gross Profit was 213.071 + 281.147 + -18.383 + 59.791 = $535.6 Mil.
Total Current Assets was $474.5 Mil.
Total Assets was $13,584.9 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 $25.1 Mil.
Total Current Liabilities was $217.9 Mil.
Long-Term Debt & Capital Lease Obligation was $7,281.7 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)
=(135.238 / 864.324) / (125.794 / 535.626)
=0.156467 / 0.234854
=0.6662

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)
=(535.626 / 535.626) / (864.324 / 864.324)
=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 - (707.829 + 0) / 13511.396) / (1 - (474.461 + 0) / 13584.853)
=0.947612 / 0.965074
=0.9819

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
=864.324 / 535.626
=1.6137

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)
=(27.938 / 864.324) / (25.091 / 535.626)
=0.032324 / 0.046844
=0.69

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)
=((7077.088 + 230.17) / 13511.396) / ((7281.744 + 217.913) / 13584.853)
=0.540822 / 0.55206
=0.9796

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
=(793.309 - 0 - 1135.611) / 13511.396
=-0.025334

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.

Blue Owl Capital has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.


Blue Owl Capital Beneish M-Score Related Terms

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Blue Owl Capital (Blue Owl Capital) Business Description

Traded in Other Exchanges
Address
399 Park Avenue, 38th Floor, New York, NY, USA, 10022
Blue Owl Capital Corp is a specialty finance company and business development company (BDC) focused on providing direct lending solutions to U.S. middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns, including senior secured, subordinated, or mezzanine loans and equity-related instruments. Its investment strategy is intended to generate favorable returns across credit cycles with an emphasis on preserving capital.
Executives
Chris Temple director 3953 MAPLE AVENUE, SUITE 180, DALLAS TX 75219
Matthew Swatt officer: Co-Treasurer 399 PARK AVE 38TH FL, NEW YORK DC 10022
Eric A. Kaye director C/O OWL ROCK CAPITAL CORPORATION, 245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167
Craig Packer director, officer: President and CEO (1) C/O BLUE OWL CAPITAL INC., 399 PARK AVENUE, 37TH FLOOR, NEW YORK NY 10022
Edward H Dalelio director 1000 BOARDWALK AT VIRGINIA AVENUE, ATLANTIC CITY NJ 08401
Alexis Maged officer: Vice President C/O OWL ROCK CAPITAL CORPORATION, 245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167
Melissa Weiler director 399 PARK AVE 38TH FL, NEW YORK DC 10022
Victor Woolridge director 399 PARK AVENUE, 38TH FLOOR, NEW YORK NY 10022
Jennifer Mcmillon officer: Co-Treasurer and Co-Controller C/O OWL ROCK CAPITAL CORPORATION, 399 PARK AVENUE, 38TH FLOOR, NEW YORK NY 10022
Shari Withem officer: Co-Treasurer 399 PARK AVE 38TH FL, NEW YORK NY 10022
Jonathan Lamm, officer: See Remarks 200 WEST STREET, NEW YORK NY 10282
Regents Of The University Of California 10 percent owner 1111 FRANKLIN STREET, 6TH FLOOR, OAKLAND CA 94607
Neena Reddy officer: Vice President and Secretary C/O OWL ROCK CAPITAL ADVISORS LLC, 399 PARK AVENUE, 38TH FLOOR, NEW YORK NY 10022
Karen F. Hager officer: Chief Compliance Officer OWL ROCK CAPITAL CORPORATION, 245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167
Bryan Thomas Cole officer: Controller C/O OWL ROCK CAPITAL CORPORATION, 245 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10167