Step 1: Divide the number into separate digits:
05974 => 0 5 9 7 4
Step 2: Calculate the distance between each digit and the next (the last digit with the first):
0 to 5 = 5
5 to 9 = 4
9 to 7 = 2
7 to 4 = 3
4 to 0 = 4
Step 3: Combine the filters to a string:
5 4 2 3 4 = 54234