Basic information on financial databases: cook books, tips and tricks & economic news

This blog contains schematic easy to grasp - hands on - help in performing searches in economic databases, making work sets and making them inter-exchangeable between the databases.

* Disclaimer. I am not a finance professional. Most posts are the result of personal findings.

Note:
All presented images are scaled and can be enlarged to original size (click the picture).

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12/20/2019

Event study in FactSet - Excel

Gathering data in factset:

1. Start up factset
2. Choose Screening
3. Idea screening
4. Press M&A
5. determine your selections. >  you can drag criteria from left column into the right, for instance Target industry or acquiror industrie
6. Type your criterium in industry, e.g. banks enand select comemrcial banks.
7. the top of your table will show a new nr of deals
8. set other criteria like complited, public status of companies etc.
9. Press at top left of table Edit Report > type identifier (to retrieve indentifiers for acquirors and / target)
10. type date to select completion date and or announcement date

When done: press green pointing down arrow at top right of the table (download)
Determine your save location (excel format)

Opening in Excel
11. Open excel.
12. Search your saved document and open (image, shows only part)












Creating the event
13. Create new sheet
14. Copy acquiror Id's into a new sheet
15. Copy completion dates into new sheet
16. Say the event lasts 30 days starting completion date?
      In column next to the dates type =Cell nr +30 > e.g. =C2+30   
17. Double click bottom right of the new cell (looks like a plus symbol)
18. Select the new Column copy into new column with paste as values (right click and choose 123)
19. the dates look like numbers.
20. Rightclick column and select format (select date)











FactSet
21. Create another new sheet

22. Look TAB Factset and press from the bar utmost left: Show/Hide (see image)
23. Now copy identifiers and paste with TRANSPOSE (transponeer) into the new sheet
24. Repeat with dates completion date and plus thirty days dates
25. Looks like this:









Working with the side bar:
26. Select Company with side bar: > use the center TAB INSERT  >
27. Click Selecter button (red symbol) and select the first identifier cell > press OK
28. Name of the company appears
29 Data item (one at a time) type price
30 Select Factset Global-FG_price
     Set first date with selecter button
     Set plus 30 days date
     Set Frequency (otherwise default)
31.Press Insert L the green table becomes white











Applying this to all companies:

This demands some programming

31. Press the cell with the company name and look at the Excell formula rule:





Company name cell, data item cell and first data cell all got thweir own programming codes



To change them:
Company name cell add a $ :
=FDS(A1;"FG_COMPANY_NAME()") becomes
=FDS(A$1;"FG_COMPANY_NAME()")

Data item:
=FDS(A1;"FORMULA_DESCRIPTION(""FG_PRICE"")") becomes
=FDS(A$1;"FORMULA_DESCRIPTION(""FG_PRICE"")")
Data:
=FDS(A1;"FG_PRICE("&A2&","&A3&",D)") becomes
=FDS($A$1;"FG_PRICE("&A2&","&A3&",D)")
CTRL-SHIFT-ENTER

Result:

 






9/13/2019

Shareholder letter - 10-K form, annual report

Key Elements 10K

  • The 10-K is generally more detailed than the annual report,. It doesn't have a PR component, it is mandatory, if the company is publicly traded and is traded in the US
  • Publicly traded companies will complete both annual report and 10K
  • Both deal with financial performance over the last year of the company
  • The 10-K can be found on the SEC website, while the annual report should be readily available on the company’s website.
  • Source Investopedia

!! Publicly traded companies in the US << the SEC tneeds to know their finances: 10-K.

What Is an Annual Report?

There is much more flexibility in an annual report, particularly if your business is small. An annual report is a document a company prepares each year to detail its performance.
It can also be dressed up for PR's sake.
Most investors get hold of Annual report and not on 10K. Some comps choose to send 10K to both Sec and shareholders.

Components of a 10-K

There are five major components of a 10-K, with businesses personalizing each of those sections with their own information.
1. Overview of the business
2. Risk factors
3. Five-year overview of its financial data
4. Management’s Discussion and Analysis of Financial Condition and
5. Results of Operations, which is where the business has the freedom to summarize the past year, and ends with financial statements.
Once 10K is filed it becomes public information
10K is audited

Information in an Annual Report

1. Primarily for the shareholders.
2. The goal is to provide a detailed accounting of your business’s financial health.
3. Detailed financial statements
4. But you’ll also break them down using your own narrative.
You’ll do this through a letter to the shareholders from your CEO, a section with operational and financial highlights and notes that you append to the financial statements.
(Source:finance.Zacks.com, feb. 2019)

10Q?
. Less detail than 10K
. Q stands for Quarter(ly) filing
. 10Q not always audited


8K?
Only with special events
. bankruptcy filing
. acquisition or resignation of a key member of your board of directors

Risk Factors

As an investor, it’s important to know what to look for when you’re reviewing a company’s 10-K. Here are some of the most notable components of a 10-K:
  • Chairman’s Letter – The chairman’s letter can actually be one of the most telling parts of the 10-K. If possible, gather multiple years of reports and compare what the chairman says from one year to the next. Were they able to accomplish the goals the chairman outlined in a previous year’s letter?
  • Risk Factors – Item 1A details the risks a business faces. They’re urged to only list risks that can affect the securities that are being offered. Risks can include lack of an operating history and unprofitable operations in the most previous period.
  • Financials – Item 6 will provide a brief overview of the company’s financials over the past five years. If you’re considering investing, this could give you a decent picture of where the company may go in the future.
  • Management’s Discussion – Item 7 gives the business the opportunity to offer its own perspective on the previous year’s results. You may also find here a few risks you should take note of before investing.
  • Financial Statements and Supplementary Data – Item 8 has all of the appended information you’ll need to get the full picture of how the company performed. This data will have been audited and has the business’s income statement, balance sheets, cash flow statements and the statement of stokholders’ equity.

Databases containing 10K or Shareholder Letters
EDGAR SEC https://www.sec.gov/edgar.shtml

Audit analytics
https://www-auditanalytics-com.vu-nl.idm.oclc.org/ > points  to EDGAR

Factset through Screening or Filings?


 Source Investopedia
 (Source:finance.Zacks.com, feb. 2019)