This version is based on the Trailing Twelve Month results - we also have a version based on annual results only, which may be more reliable given the sometimes sparse nature of interim reporting.

Many companies can increase their reported earnings by booking sales early, delaying expense recognition, capitalising expenses and other tricks of the trade.

Most of these tricks aren't illegal, but regular practice can signify a company that may be getting into bad habits.

The M Score predicted such high profile failures as Enron and has even been shown to be useful as a short selling technique.

This is measured on a TTM basis.