Is It Trustworthy? · Advanced · Pro filter
Beneish M-score: what it means and how to read it
A score from 8 accounting ratios that estimates whether profits may have been inflated.
What is Beneish M-score?
A score from 8 accounting ratios that estimates whether profits may have been inflated.
A worked example
A score of −2.6 is on the safe side of the line. A score of −1.4 is above −1.78, the level at which the model says the accounts deserve a closer look.
Why does Beneish M-score matter?
It famously flagged Enron's accounts as suspicious before the company collapsed.
How do you read Beneish M-score?
Above −1.78 suggests possible earnings manipulation. It's a warning, not proof.
Reading scale
In score
Lower risk
Possible manipulation
−3−1.780+
On the scale used here, below −1.78 reads as lower risk, and −1.78 and above reads as possible manipulation.
Lower is usually better.
Above -1.78 suggests possible earnings manipulation
What is a typical Beneish M-score in India today?
The median across the 2378 listed companies that report it, as of 12 Oct 2026. Half sit above each figure and half below.
By company size
Median
Large Cap · 49 companies-2.7
Mid Cap · 86 companies-2.5
Small Cap · 2243 companies-2.4
By industry
Median, largest industries first
Pharmaceuticals · 140-2.4
Refineries & Marketing · 8-2.5
Power Generation · 14-2.7
Auto Components & Equipments · 86-2.6
Cement & Cement Products · 30-2.7
Aerospace & Defense · 24-2.2
Iron & Steel · 12-2.8
Heavy Electrical Equipment · 27-2.2
Civil Construction · 63-2.2
Residential Commercial Projects · 49-2.2
Compare a company with its own industry before the whole market. Every industry, and each company's rank within it, is in the screener.