Table 4 M-score Model by Beneish.
From: Creating quality portfolios using score-based models: a systematic review
Component | Derivation |
|---|---|
M-score | −4.84 + 0.92 × M1 + 0.528 × M2 + 0.404 × M3 + 0.892 × M4 + 0.115 × M5 − 0.172 × M6 + 4.679 × M7 − 0.327 × M8 |
M1 | Index of Days sales in Receivables Index |
M2 | Index of Gross Margin |
M3 | Asset Quality Index |
M4 | Index of Sales Growth |
M5 | Index of Depreciation |
M6 | Index of Sales, General and Administrative expenses |
M7 | Index of Leverage |
M8 | Total Accruals/Total Assets |
