# A tibble: 5 × 54
date symbol reported_currency cik filling_date accepted_date
<date> <chr> <chr> <chr> <date> <date>
1 2024-06-30 MSFT USD 0000789019 2024-07-30 2024-07-30
2 2023-06-30 MSFT USD 0000789019 2023-07-27 2023-07-27
3 2022-06-30 MSFT USD 0000789019 2022-07-28 2022-07-28
4 2021-06-30 MSFT USD 0000789019 2021-07-29 2021-07-29
5 2020-06-30 MSFT USD 0000789019 2020-07-30 2020-07-30
# ℹ 48 more variables: calendar_year <int>, period <chr>,
# cash_and_cash_equivalents <dbl>, short_term_investments <dbl>,
# cash_and_short_term_investments <dbl>, net_receivables <dbl>,
# inventory <dbl>, other_current_assets <dbl>, total_current_assets <dbl>,
# property_plant_equipment_net <dbl>, goodwill <dbl>,
# intangible_assets <dbl>, goodwill_and_intangible_assets <dbl>,
# long_term_investments <dbl>, tax_assets <int>, …Analyze Companies using Financial Ratios
Tidy Finance Webinar Series
Christoph Scheuch
Recap of last webinars
So far only used stock return data
Today: introduction to company financial statements
Financial statements are key source of information
- Standardized way for investors, creditors, analysts to assess companies
- Companies are legally required to file financial statements
- Public companies required to have independent audits of statements
- US Security Exchange Commission requires quarterly & annual filings
Financial ratios help understand companies
- Comparison across companies (benchmarking)
- Comparison across periods for specific company (trend analysis)
- Firm quality in portfolio selection (e.g., ratio-based filters)
- Factor models in asset pricing (e.g., Fama-French factors, Q-factors)
- Capital structure research & risk management
Outline of this webinar
- Illustrations of financial statements
- Examples of financial statements
- Download financial data in R
- Calculate financial ratios
- Compare company ratios to peers
- Analyze company ratios over time
- Firm characteristics in Fama-French
Balance sheets
Assets breakdown
Liabilities breakdown
Equity breakdown
Example balance sheet from Microsoft in 2023
Use fmpapi package to access financial statements
- SEC provides interface to search filings
- Financial Modeling Prep (FMP) API provides programming interface
- Free tier: 250 calls / day, 5 year historical fundamental data
- Early-stage R package: tidy-finance/r-fmpapi
- Install via
pak::pak("tidy-finance/r-fmpapi")