Ellington Credit Company
EARN Financial Asset Management
Ellington Credit Company’s revenue for fiscal 2024 (year ended December 2024) was $49.9 million, up 17.2% from fiscal 2023. In the quarter to December 2024, revenue grew 8.08%, EPS fell 109.3% and free cash flow grew 293.8%, each against the same quarter a year earlier. Dividend growth for three consecutive years, revenue growth for five.
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Ellington Credit Company (EARN) Beneish M-score
Ellington Credit Company's Beneish M-score for fiscal 2024 cannot be worked out: not meaningful for banks, insurers and REITs.
Beneish M-score, annual
Annual newest first
| Period | Beneish M-score | Change (points) |
|---|
How fiscal 2024’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.33 | — | 0.30 | |
| Gross margin index | 1.01 | — | 0.53 | |
| Asset quality index Asset quality not computable — index set to 1 | 1.00 | — | Set to 1 | 0.40 |
| Sales growth index | 1.17 | — | 1.05 | |
| Depreciation index Depreciation not reported — index set to 1 | 1.00 | — | Set to 1 | 0.12 |
| SG&A index | 1.67 | — | −0.29 | |
| Total accruals to total assets | 0.00 | — | −0.01 | |
| Leverage index | 0.89 | — | −0.29 | |
| Beneish M-score | n/a — not meaningful for banks, insurers and REITs | — | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| WHF WhiteHorse Finance, Inc. compare | — |
| SAMG Silvercrest Asset Management Group Inc. compare | — |
| SPMC Sound Point Meridian Capital, Inc. compare | — |
| EARN Ellington Credit Company | — |
| NSLR Neostellar Capital Corp. compare | — |
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What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI