Beneish M-Score

The Beneish M-Score is a mathematical model created by Professor Beneish that uses eight financial ratios to identify whether a company may have manipulated its earnings figures for reporting purposes. This is measured on a TTM basis.

Stockopedia explains Beneish M-Score

You can read a more detailed description of the Beneish M-Score here.

This version is based on the Trailing Twelve Month results - we also have a version based on annual results only, which may be more reliable given the sometimes sparse nature of interim reporting.

Many companies can increase their reported earnings by booking sales early, delaying expense recognition, capitalising expenses and other tricks of the trade. Most of these tricks aren't illegal, but regular practice can signify a company that may be getting into bad habits.

The M Score predicted such high profile failures as Enron and has even been shown to be useful as a short selling technique.

This is measured on a TTM basis.

Ranks: Low to HighAvailable in screenerAvailable as Table Column

The 5 highest Beneish M-Score Stocks in the Market

TickerNameBeneish M-ScoreStockRank™
ASX:BCBBowen Coking Coal84,774.015
WAR:ADXAdatex SA1,956.5121
ATH:KEKRKekrops SA1,921.4872
BIT:KMEKME SpA1,245.0385
BIT:ABCABC SpA Societa Benefit1,206.744