Estimate the probability a company has manipulated its earnings, using Messod Beneish’s eight-variable accounting model. Pick a ticker to compute every ratio from the latest two filings, or enter ratios manually.
Inputs
Result
M-Score iBeneish M-ScoreAn eight-variable model that estimates the probability a firm has manipulated its earnings.M = -4.84 + 0.92·DSRI + 0.528·GMI + 0.404·AQI + 0.892·SGI + 0.115·DEPI - 0.172·SGAI - 0.327·LVGI + 4.679·TATA
-2.48
Low riskEnter ratios to compute
What this means. Below the manipulation threshold.
Reference
Every input and output on this page, explained in plain English. Hover the info icons in the calculator above to see the same content inline.
An eight-variable model that estimates the probability a firm has manipulated its earnings.
Formula
M = -4.84 + 0.92·DSRI + 0.528·GMI + 0.404·AQI + 0.892·SGI + 0.115·DEPI - 0.172·SGAI - 0.327·LVGI + 4.679·TATA
How to read the result
Low risk5/5
Below the manipulation threshold.
Investigate3/5
Borderline — review accounting choices.
High risk1/5
Statistically associated with earnings manipulation.
Year-over-year change in receivables days; rising DSRI can signal channel stuffing.
Prior-year gross margin / current gross margin. >1 means deteriorating margins.
Change in non-current, non-PPE assets relative to total assets.
Current sales / prior sales. High growth can pressure managers to manipulate.
Prior depreciation rate / current rate. >1 may indicate slowing depreciation to boost income.
Change in SG&A as a percentage of sales.
Change in leverage (total debt / total assets).
(Net income − operating cash flow) / total assets. High accruals can mask cash weakness.
FAQ
Messod Beneish’s 1999 model that uses eight ratios from two consecutive annual reports to flag the statistical likelihood of earnings manipulation.
Educational tool only. The outputs above are produced by a deterministic formula from the values you enter. They are not a recommendation to buy, hold, or sell any security and are not investment advice. Always do your own research and consider consulting a licensed advisor before making investment decisions.
5 undervalued stocks, fully modeled. Every Monday. No spam.
We use cookies to analyze site usage and improve your experience. You can accept all, reject all, or customize your preferences.