Logan Ridge Finance (Logan Ridge Finance) Beneish M-Score : 0.00 (As of Jun. 09, 2024)

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What is Logan Ridge 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.

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

During the past 13 years, the highest Beneish M-Score of Logan Ridge Finance was 20.92. The lowest was -4.69. And the median was -0.75.

Logan Ridge 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 Logan Ridge Finance 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 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* 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 (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $2.03 Mil.
Revenue was 3.065 + -2.1 + -0.936 + 4.363 = $4.39 Mil.
Gross Profit was 3.065 + -2.1 + -0.936 + 4.363 = $4.39 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $213.37 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 $4.32 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $114.14 Mil.
Net Income was 1.851 + -3.121 + -1.951 + 3.24 = $0.02 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -7.094 + -4.012 + 20.481 + -0.27 = $9.11 Mil.

Total Receivables was $1.21 Mil.
Revenue was 0.534 + -2.139 + -1.88 + -3.906 = $-7.39 Mil.
Gross Profit was 0.534 + -2.139 + -1.88 + -3.906 = $-7.39 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $216.47 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 $4.43 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $119.72 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)
	=	(2.032 / 4.392)	/	(1.209 / -7.391)
	=	0.462659	/
	=

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)
	=	(-7.391 / -7.391)	/	(4.392 / 4.392)
	=		/	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) / 213.374)	/	(1 - (0 + 0) / 216.469)
	=	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
	=	4.392	/	-7.391
	=

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))
	=		/
	=

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)
	=	(4.315 / 4.392)	/	(4.425 / -7.391)
	=	0.982468	/
	=

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)
	=	((114.141 + 0) / 213.374)	/	((119.719 + 0) / 216.469)
	=	0.534934	/	0.553054
	=

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
	=	(0.019 - 0	-	9.105)	/	213.374
	=	-0.042583

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.

Logan Ridge Finance Beneish M-Score Related Terms

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Logan Ridge Finance (Logan Ridge Finance) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Logan Ridge Finance Corp (NAS:LRFC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

0XL0:Germany

Address

650 Madison Avenue, 23rd Floor, New York, NY, USA, 10022

Website

https://www.loganridgefinance.com

Logan Ridge Finance Corp an externally managed non-diversified closed-end management investment company. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. The company offers customized financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Executives

Jennifer Kwon Chou	director	C/O THE GORES GROUP, 9800 WILSHIRE BOULEVARD, BEVERLY HILLS CA 90212
Patrick Schafer	officer: Chief Investment Officer	650 MADISON AVENUE, NEW YORK NY 10022
Brandon Satoren	officer: See Remarks	650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022
Edward J. Goldthorpe	director, officer: CEO and President	650 MADISON AVENUE, NEW YORK NY 10022
Jason T Roos	officer: CFO, Treasurer and Secretary	23 SPRINGHURST ROAD, BEDFORD HILLS NY 10507
David Held	officer: Chief Compliance Officer	650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022
George Grunebaum	director	C/O ASHMORE INVESTMENT MANAGEMENT LTD., 61 ALDWYCH, LONDON X0 WC2B 4AE
Alexander Duka	director	650 MADISON AVENUE, NEW YORK NY 10022
Robert Herman Warshauer	director	8 GOLDEN POND ROAD, WEST HARRISON NY 10604
Larry W. Carroll	director	C/O PARK STERLING BANK, 1043 EAST MOREHEAD STREET, SUITE 201, CHARLOTTE NC 28204
Alala Joseph B Iii	director, officer: See Remarks	C/O CAPITALA FINANCE CORP., 4201 CONGRESS STREET, SUITE 360, CHARLOTTE NC 28209
Richard Wheelahan	officer: Chief Compliance Officer	C/O CAPITALA FINANCE CORP., 4201 CONGRESS STREET, SUITE 360, CHARLOTTE NC 28209
Kevin A. Koonts	officer: Chief Accounting Officer	4201 CONGRESS STREET, SUITE 360, CHARLOTTE NC 28209
Stephen A. Arnall	officer: Chief Financial Officer	C/O PARK STERLING BANK, 1043 EAST MOREHEAD STREET, SUITE 201, CHARLOTTE NC 28204
Markham Hunt Broyhill	director	800 HICKORY BLVD. SW, LENOIR NC 28645