It is interesting to investigate which balance sheet data can be retrieved from the databases the library offers. Sometimes the data are ready for download, sometimes they have to be calculated, and sometimes they are absent altogether. This post aims at offering an oversight of commonly used balance sheet figures and how they can be found in database Datastream.
Datatypes available in Datastream are presented in red.
The Balance Sheet - Datastream
1. Assets
Assets = liabilities + shareholders' equity
Total Assets = non-current assets + current assets
Datastream: datatypes
Total assets = DWTA
TOTAL ASSETS represent the sum of total current assets, long term receivables, investment in unconsolidated subsidiaries, other investments, net property plant and equipment and other assets.
Current assets total = WC02201
CURRENT ASSETS - TOTAL represents cash and other assets that are reasonably expected to be realized in cash, sold or consumed within one year or one operating cycle.
Generally, it is the sum of cash and equivalents, receivables, inventories, prepaid expenses and other current assets.
For non-U.S. corporations, long term receivables are excluded from current assets even though included in net receivables.
Long term (non-current assets)
DWTA - WC02201 = Long term assets
2. Liabilities
Datastream datatypes:
Total libalities = Current liabilities + long term liabilities
Short term liabilities: accounts payable (WC03040), short term debt (WC03051)
Long term liabilities are long term debt (WC03251), deferred taxes (WC03263) and capital leases (WC18381 < VU not licensed)
Total liabilities: WC03351 = Current liabilities total: WC03101 + Long term liabilties
Total liabilities & shareholders' equity : WC03999
Accruals (balance sheet)
Accrual (accumulation) in finance is the accumulation of interest or different
investments over a period of time. used in accrual-based accounting:
accounts payable (WC03040), accounts receivable (receivables net = WC02051 ), goodwill (amortization of goodwill= WC18224; also see amortization of..WC01156 and impairment of . . . WC18225), deferred tax liability (deferred taxes = WC03263) and future interest expense (WC01075, total)
***) not all companies provide, and not all data types are downloaded
3. Shareholders'equity
Assets - (total) liabilities = shareholders'equity (book value of equity)
DWTA - WC03351 = shareholders' equity (WC03995)
4. Market value
Instead of Book value of equity, Market Value ( MV) is used.
Market Value MV = share price (P) x number of shares (NOSH) (market capitalisation)
5. Liquidation of a company
Market to book ratio
Market to book ratio = Market value of equity (MV) / Book value of equity =
MV / (DWTA - WC03351)
Debt equity ratio
Total debt / total (shareholder) equity
WC03255 / WC03995
Total shareholder equity WC03995
Total debt WC03255
represents all interest bearing and capitalized lease obligations. It is the sum of long and short term debt.
Total shareholder equity
represents the sum of Preferred Stock and Common Shareholders Equity.
This item is available in the annual time series and the quarterly, semi-annual and trimester interim time series. It is only available at the company level.
Enterprise values WC18100 < ready available datatype
Market Capitalization at fiscal year end date + Preferred Stock + Minority Interest + Total Debt minus cash. Cash represents Cash & Due from Banks for Banks, Cash for Insurance Companies and Cash & Short Term Investments for all other industries.
(Market value + debt) - cash
Cash: WC02003
CASH represents money available for use in the normal operations of the company. It is the most liquid of all of the company's assets.
(MV + WC03255) - WC02003
Gross profit margin
Gross Income / Net Sales or Revenues * 100 = WC01100 / WC-1001 x 100
Gross income: WC01100
the difference between sales or revenues and cost of goods sold and depreciation.
Net sales or revenues: WC01001
gross sales and other operating revenue less discounts, returns and allowances.
Earning per share EPS WC05201
Net income / shares outstanding = WC01751 / WC05301
Net income used for EPS WC01751
Net Income Available To Common
Shares outstanding WC05301
the number of shares outstanding at the company's year end. It is the difference between issued shares and treasury shares.
Profitability ratio
Gross profit / sales
Return on equity ROE DWRE
Net income / book value on equity
WC01751 / MV
ROE = (Net income/ sales) x (sales/ total assets) x (total assets/ total equity)
| net profit margin assets turnover | equity multiplier
-------------------------------------------
(WC01751/WC01001) x (WC0100/DWTA) x DWTA/(WC03451 + WC03501)
total equity = preferred stock (WC03451) + common equity (WC03501) = WC03451 + WC03501
*) datatypes used in this item all do provide Data within our FDatastream license.
Return on Assets (ROA)
(investopedia) (click)
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".
The formula for return on assets is: Net Income / total assets ( WC01751/ DWTA )
Other ratios from the balance sheet
WC01001 Net Sales or revenues
WC01250 Operating income (sales - total operating expenses [WC01249])
WC01401 Pretax income
WC08101 Quick ratio (Cash + equivalents [WC02001] + receivables (net) [WC02051] / current liabilities total
WC08106 Current ratio (current assets total [WC02201] / current liabilities [WC03101] )
WC08221 Total debt % (total capital & short term debt)
WC08301 Return on equity - total %
WC08311 Cash flow / sales
WC08316 Operating profit margin
WC08321 Pretax margin (pretax income / net sales or revenues x 100)
WC08366 Net margin (Net Income before Preferred Dividends [WC01651] / Net Sales or Revenues [WC01001] x 100)
WC08376 Return on invested capital
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