The Earnings Manipulation Risk Indicator gives a visual representation of how likely it is that a company's management has been manipulating the accounts to inflate earnings. The indicator is based on the Beneish M-Score, a statistical measure derived from a set of 8 ratios drawn from a company's accounts. If the switch is on, Beneish's research implies a ~86% probability that the firm is manipulating earnings
For further information on how the M-Score is calculated click here.
To view all the stocks with the worst M-Score record click here.