This weekend I have started on the definition of the ratios. This is actually more of a challeng than one might expect.

As I have mentioned in a previous post,the different companies that file their statements with the SEC in XBRL, do not all respect the XBRL taxonomy. For example on the Consolidated balance sheet they are supposed to use “Liabilities” to represent the total liabilities on the statement date. However some of them do not do this but instead have a line item for the “LiabilitiesAndStockholdersEquity” and another for the “StockholdersEquity”. Thus liabilities can be calculated by subtracting the “StockholdersEquity” from the “LiabilitiesAndStockholdersEquity”.

In the S&P 500 companies that have been imported in the database some 290 companies use “Liabilities” and about 100 use the latter “LiabilitiesAndStockholdersEquity”. This totals to about 390 out of the 500 companies. For the rest I have to identify further synonyms as the different types of organisation are allowed to have differently structured statements.

I am pushing on and have so far implemented the following ratios:

Balance Sheet based:

  • Current ratio
  • Debt Equity ratio
  • Debt ratio
  • Equity ratio

Income Statement based:

  • Gross margin ratio

I will add to the list as this goes.

Ratio Definition