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Beneish M-Score Calculator
Detect earnings manipulation risk with the Beneish M-Score. Enter any ticker for instant analysis of 8 forensic accounting ratios — free, no signup required.
Enter a ticker to calculate M-Score
Try AAPL, MSFT, or any US-listed company. The calculator fetches two years of financial statements and computes all 8 Beneish ratios instantly.
How to use this Beneish M-Score calculator
Enter a ticker and click Analyze
Type any US-listed ticker — AAPL, F, GE, ENRN — and click Analyze. The calculator fetches two consecutive annual income statements, balance sheets, and cash flow statements from Yahoo Finance automatically.
Read the M-Score and verdict
The large score is color-coded: green for Low Risk (below -2.22), yellow for Grey Zone (-2.22 to -1.78), red for High Risk (above -1.78). The gauge shows where the score sits relative to both thresholds.
Inspect the 8 ratio breakdown
The table shows each of the eight ratios, their computed value, and what pattern each one detects. Flagged ratios (⚑) have values above the suspicious threshold — these deserve closer attention.
Cross-check with earnings quality
For high-risk or grey-zone companies, run an earnings quality score and check the Altman Z-Score before drawing conclusions. No single model proves or disproves fraud.
Beneish M-Score — Frequently Asked Questions
What is the Beneish M-Score?
The Beneish M-Score is an earnings manipulation detection model developed by Professor Messod Beneish in 1999. It combines eight financial ratios into a single score using a weighted formula: M = -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. Each ratio captures a different dimension of financial statement behavior — receivables growth, gross margin changes, asset quality, sales growth, depreciation, SG&A trends, accruals, and leverage. The model was calibrated on US companies and validated in out-of-sample tests.
What score indicates earnings manipulation?
An M-Score above -1.78 places a company in the high-risk category — Beneish's model predicts it is a likely earnings manipulator. Scores between -2.22 and -1.78 fall in the grey zone, where the model is inconclusive and further investigation is needed. A score below -2.22 suggests the company is likely a non-manipulator. Note that the model flags risk patterns, not confirmed fraud — always combine the M-Score with qualitative analysis and review of management commentary.
Is the Beneish M-Score accurate?
In Beneish's original study, the model correctly identified 76% of known earnings manipulators. The model is notably good at avoiding false positives — it is more conservative in labeling companies as manipulators than many alternatives. However, it was designed for US manufacturers and is less reliable for banks, insurance companies, and other financial sector firms whose balance sheets are structurally different. Use the M-Score as a first-pass forensic screen alongside other tools like the Altman Z-Score and earnings quality analysis.
FINISHED THE NUMBERS?
A calculator gives you one number. The report gives you the argument.
Assumptions, scenarios, and what breaks them — on any public company.
See a sample report →