Formula
M-Score
=
−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
- DSRI = Days Sales Receivables Index
- GMI = Gross Margin Index
- AQI = Asset Quality Index
- SGI = Sales Growth Index
- DEPI = Depreciation Index
- SGAI = SG&A Expense Index
- TATA = Total Accruals to Total Assets
- LVGI = Leverage Index
Alpha Finance
Beneish M-Score of —
M-Score
—
Definition
The Beneish M-Score, developed by professor Messod Beneish, is a forensic accounting model used to detect earnings manipulation. It combines eight financial ratios to identify signs of aggressive accounting practices. A lower (more negative) M-Score indicates the company's financial statements are likely reliable, while a higher (less negative) score suggests a greater likelihood of manipulation. Generally, a score below −2.22 is considered safe, and above −1.78 may indicate potential earnings manipulation.
Low Risk< −2.22
Gray Zone−2.22 – −1.78
Likely Manipulator> −1.78
AlphaAI M-Score Analysis
Powered by Alpha Finance
AI-powered insights will appear here...