Step 1: Divide the number into separate digits:
5306 => 5 3 0 6
Step 2: Calculate the distance between each digit and the next (the last digit with the first):
5 to 3 = 2
3 to 0 = 3
0 to 6 = 6
6 to 5 = 1
Step 3: Combine the filters to a string:
2 3 6 1 = 2361