Step 1: Divide the number into separate digits:
5437 => 5 4 3 7
Step 2: Calculate the distance between each digit and the next (the last digit with the first):
5 to 4 = 1
4 to 3 = 1
3 to 7 = 4
7 to 5 = 2
Step 3: Combine the filters to a string:
1 1 4 2 = 1142