This screen finds companies with a Beneish M-Score below -2.22, the zone that suggests the company is unlikely to be manipulating its earnings. The Beneish M-Score, created by professor Messod Beneish, combines eight financial ratios, such as receivables growth, margin changes and accruals, into one number that estimates the likelihood of earnings manipulation; -2.22 is the common cutoff. Investors use a low M-Score as a quality check that reported profits are backed by real business activity.
