In 2011 I posted two items on databases containing data from the balance sheet: Datastream and Compustat.
At that time I left out te option to search for such data in database Amadeus, mainly because Amadeus doesn't cover financials (insurance companies and banks)
However. Since Amadeus is a fairly easy database to use I'll show you which key data from the balance sheet can be found and added to your research.
In he first part of this post I will emphasize on Amadeus and its contents. In the second part I will compare Amadeus to Datastream and Compustat.
Amadeus: Only European companies. No banks and no insurance companies
Datastream: only companies noted on stock exchanges
Compustat: only companies noted on stock exchanges; no ratios (DIY)
Ratios, values and other instruments from the balance sheet - Amadeus
(Bureau van Dijk interface)
Amadeus provides simplified balance sheet data, easy to get, but few in number.
Section 1 The Balance Sheet - Amadeus
For insight in using Amadeus I refer to the following items:
- From the library Blackboard page: click here (only available to VU users)
- Amadeus tutorials (4) (Bureau van Dijk)
- Amadeus official user manual : here
Press view list of results
A basic list (of clickable companies shows):
On the right hand side of the screen there is a menu.
Now click List format
Choose: New Format.
The next screen shows the menu that pops up:
Key financials and ratios can be opened by pressing the +
The next menu offers three options: Key financials & employees, global format and ratios.
Within the options further selections can be made by unfolding the folders (pressing the +) Selection happens by pressing the box.
List of all balance sheet items and ratios in Amadeus
Key Financials and employees:
P/L before tax
P/L for period [= Net Income]
Cash flow
Total assets
Shareholders funds
Current ratio
Profit margin %
Return on shareholder funds %
Return on capital employed %
Solvency ratio %
Number of employees
Balance sheet :
Assets
Fixed asset
Intangible fixed assets
Tangible fixed assets
Stock
Debtors
Other current assets
Cash & cash equivalent
Total assets
Liabilities
Shareholders funds
Capital
Other shareholders funds
Non-current liabilities
Long term debt
Other non-current liabilities
Provisions
Current liabilities
Loans
Creditors
Other current liabilities
Total shareholder funds & liabilities
Memo lines
Working capital
Net current assets
Enterprise value
Number of employees
Profit and loss account
Profit and loss account
Operating revenue (Turnover)
Sales
Costs of goods sold
Gross profit
Other operating expenses
Operating P/L [=EBIT]
Financial revenue
Financial expenses
Financial P/L
P/L before tax
Taxation
P/L after tax
Extr. and other revenue
Extr. and other expenses
Extr. and other P/L
P/L for period [=Net income]
Memo lines (not all companies provide data)
Export turnover
Material costs
Costs of employees
Depreciation
Interest paid
Research & Development expenses
Cash flow
Added value
EBIT
EBITDA
Ratios :
Profitability ratios
Return on shareholder funds %Profitability ratios
Return on capital employed %
Return on total assets %
Profit margin %
Gross Margin %
EBITDA Margin %
EBIT Margin %
Cash flow / Operating revenue %
ROE %
ROA %
ROCE %
Enterprise value / EBITDA
Operational ratios
Net assets turnover
Interest cover
Stock turnover
Collection period days
Credit period days
Export revenue / Operating revenue %
R&D expenses / Operating revenue %
*) Units can be chosen in thousands, milllions etc.
*) P/L = Profit / Loss
Section 2: the balance sheet ready in Amadeus or calculated
The next section of this post deals with the very same balance sheet data as the ones I used in the Datastream and Compustat examples.
Data types available in Amadeus are presented in red.
1. Assets
Assets = liabilities + shareholders' equity
Total Assets = non-current assets + current assets
Amadeus: Yes (Key financials)
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 = Yes (Global format > Assets)
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)
Total assets - current assets = Long term assets (calculate with the components)
2. Liabilities (not all here)
Amadeus: (Global format > liabilities & equity)
Total libalities = Current liabilities + long term liabilities (not ready in Amadeus)
Current liabilities total = current liabilities + other current liabilities
Short term liabilities: accounts payable (), short term debt ()
Long term liabilities are long term debt , deferred taxes (not in Amadeus) and capital leases (not in Amadeus)
Long term liabilities per share: book value per share / number of share outstanding .
Total liabilities: = Current liabilities total: + Long term liabilities
Total liabilities + shareholders' equity = Assets
Assets - shareholders equity (book value per share x number of shares) = total liabilities
Accruals (balance sheet) Not downloadable in Amadeus.
Accrual (accumulation) in finance is the accumulation of interest or different
investments over a period of time. used in accrual-based accounting:
accounts payable, accounts receivable, goodwill, deferred tax liability
and future interest expense.
3. Shareholders'equity
Total Assets - (total) liabilities = shareholders'equity (book value of equity)
Book value
Net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.
4. Market value
Instead of Book value of equity, Market Value ( MV) can be used.
Market Value = share price x number of shares (market capitalisation)
In Amadeus only closing price frequencies monthly and weekly, not daily
And: market value per year can be downloaded
(Nominal value (Annual stock data = price x times number of shares)
5. Liquidation of a company
Market to book ratio
Market to book ratio = Market value of equity (MV) / Book value of equity =Market value (annual) / (Total assets - (book value per share x number of shares outstanding) )
note: Market to book ratio does not include certain intangible assets like intellectual property
Its inverse: Book to market ratio = book value / market value
Debt equity ratio
Total debt / total (shareholder) equityTotal shareholder equity (Book value per equity = Book value per share x number of shares)Short term debt = Notes payable / total liabilities (Assets - share holder equity)
Total debt
represents all interest bearing and capitalized lease obligations. It is the sum of long term debt 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.
Not in Amadeus
Enterprise values (alternative to market capitalization)
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.
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.
Annually : (Market value + debt) - (total cash)
Annually: ( (Annual stock data = price x times number of shares) + debt) - (cash + cash equivalent)
Gross profit margin
Gross profitGross Income / Net Sales or Revenues * 100 = gross profit margin
Earning per share EPS (only annually)
Earnings per share (Current stock data)
= Net income / shares outstanding = P/L for period [= Net Income] / Shares outstanding
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
ROE (%)
Net income / book value on equity = P/L for period [= Net Income] / Book value per share x number of shares outstanding
Net income = P/L before tax - taxation
Return on Assets (ROA)
ROA (%) and Return on total assets (%)
The formula for return on assets is: Net Income / total assets
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".
Source: Investopedia
6. Other ratios from the balance sheet
Net Sales or revenues : salesOperating income (sales - total operating expenses (OPEX) ) = (sales - sum of all expenses)
Income before tax (not in Amadeus)
Quick ratio (Cash & cash equivalent + receivables (net) / current liabilities total
Current ratio (current assets total / current liabilities )
Sales ratio: Cash flow / sales
Operating profit margin : (not in Amadeus)
Pretax margin (P/L before tax / net sales or revenues x 100)
Net margin (Net Income before Preferred Dividends / Net Sales or Revenues x 100) (not in Amadeus)
Return on invested capital (not in Amadeus)
Guides
Coverage Amadeus , what can you find in Amadeus? (link)
User Guide Amadeus (link)
Quick tour Amadeus (link)
Source:
http://en.wikipedia.org/wiki/Financial_ratio
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