Beneish M Score Calculator
Free Beneish M-Score calculator flags possible earnings manipulation using eight financial ratios. Enter two years of data and see instant manipulation probability above the -2.22 threshold.
How It Works
Enter the inputs described in each field label for Beneish M Score Calculator.
Beneish M Score combines eight financial ratios to flag possible earnings manipulation. Combine with Altman Z Score and Springate Score on portfolios.tools for distress and manipulation screens.
Verify that all eight ratios use the same fiscal period across numerator and denominator. The model was calibrated for manufacturing firms: financials and early-stage companies may produce false positives. Combine with Altman Z-Score on portfolios.tools for a broader financial health screen.
Bookmark the page for quick reruns without installing software.
Step by step
- Open Beneish M Score Calculator and enter your current inputs.
- Review calculated outputs and summary tables.
- Adjust assumptions and compare scenarios side by side.
Worked example
Adjust one input at a time to see sensitivity.
Common mistakes
Confirm tickers, percentages, and dates before acting.
Running a single baseline scenario ignores tail risks.
The 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
Flag if M > −2.22
Designed for manufacturing and trade firms with two years of data. Not for financials or early stage firms.
Limitations and assumptions
Designed for manufacturing and trade firms with two years of data. Not for financials or early stage firms. Beneish M Score Calculator does not replace personalized advice.
Key terms
- What does Beneish M Score Calculator measure
- Beneish M Score combines eight financial ratios to flag possible earnings manipulation.
- How is the formula applied
- The formula block on this page shows every intermediate step so you can audit the math against textbook definitions.
- Model assumption
- Interpret results in context rather than as automatic buy, sell, or accept signals.
Compare alternatives
Combine with Altman Z Score and Springate Score on portfolios.
FAQ
What does Beneish M Score Calculator measure?
Beneish M Score combines eight financial ratios to flag possible earnings manipulation. This calculator runs entirely in your browser on portfolios.tools.
How is the formula applied in Beneish M Score Calculator?
Designed for manufacturing and trade firms with two years of data. Not for financials or early stage firms.
How should I interpret Beneish M Score Calculator results?
Beneish M Score combines eight financial ratios to flag possible earnings manipulation.
What are common input mistakes with Beneish M Score Calculator?
Stress test with conservative and optimistic inputs before acting. Document assumptions when sharing outputs with colleagues or lenders.
What are the limitations of Beneish M Score Calculator?
Designed for manufacturing and trade firms with two years of data. Not for financials or early stage firms.
Related Tools
Combine with Altman Z Score and Springate Score on portfolios.tools for distress and manipulation screens.