# Summary of the Beneish Model

A mathematical model that uses 8 variables to identify whether a company has manipulated earnings.

The 8 variables are:

- Day’s Sales in Receivable Index
- Gross Margin Index
- Asset Qualities Index
- Sales Growth Index
- Depreciation Index
- SG&A Index
- Leverage Index
- Total Accruals to Total Assets

M-Score > -2.22 implies manipulation.

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