FIN 420:
Investments - Javine
Company Financial, Industry & Investment Sources
This assignment guide was created to assist students in locating company financial, industry & investment sources to complete Dr. Javine's investment project involving the an analysis of an industry and the companies within that industry.
Students are specifically asked to assess an industry's performance over the last 5 years as well as its potential future performance over the next 1-5 years. Specific stocks are to be chosen to buy/sell and a detailed analysis of those companies provided.
The guide focuses on suggested strategies and best places to begin research efforts. For information & assistance in using any of the sources, please contact library staff:
Company & Industry Ratios
Standard sources for industry averages and specific company ratios are available in print or as an electronic database. Choose one source for industry averages. Currently, the most popular source among researchers is Standard & Poor's Research Insight for both specific company ratios as well as obtaining industry averages.
Mergent Online
Specific Company Ratios + Industry Averages
-->Guide to utilizing Mergent Online for Creating an Industry Comparison Report
I. To run a report that provides annual ratio data for a specific company:
- Do a 'Basic Search' for the company name or ticker symbol.
- Click on the company name on the next search screen.
- Click on the 'Ratios' tab across the top.
- Use your browser print to print the page or click on the 'Download to MS Excel' button.
II. To run a report that provides average ratio data for an industry:
- Do a 'Basic Search' for the company name or ticker symbol.
- Click on the company name on the next search screen.
- Click on the 'Create Reports' tab across the top.
- Next, click on 'Comparison Reports'.
- Choose, 'Compare Company Against Industry'
Follow the strategy listed below to complete the 'Comparison Reporting Selection Screen':
- In #1 Peer Group Selection choose NAIC as the classification and either Worldwide or Target Country USA as the scope.
- In #2 Select Comparison Report Type select 'All Companies'
- Check off 'Use Extended Report Items'
- In #3 Report Item Selection -
select 1 or more years (to select more than one year, hold the shift key and click the years needed)
check off 'include average in heading' to the lower left
Using the category pull-down menu, select 'Ratios'
Use the sub-category pull-down menu to select one of more ratio types (for each ratio, see the green button to the right 'Add Report Item'
- Review information and click 'Create Report'
- When the report appears, see the top right of the screen to print or download to Excel
Standard & Poor's Research Insight Database
(MCOB Lab Use Only)
Specific Company Ratios + Industry Averages
S&P Research Insight is available for use in the MCOB Labs. If you are a first time user, please ask for assistance by contacting Deborah Harrington to set up an appointment.
S&P RI Manuals are now available on the Web in PDF Format. To learn the basics of the system, which includes more information on how to run preformatted reports such as the ones outlined below, refer to the 'Getting Started Guide'.
I. To run a report that provides 6 years of ratio data for a specific company:
Locating Predefined Reports
- From the left toolbar menu, click on the 3rd button from the bottom 'Open Report' .
- Scroll down the list of folders and double click on the folder that is titled 'Ratio Reports and Models' .
- Highlight the report 'Annual Ratio Report' and click 'Finish' at the bottom.
- A box that helps you enter data to run the report will appear on the screen. Enter the ticker symbol and click 'OK' at the bottom of the screen.
- When the report appears, click the print button.
To save your report for use in Excel:
1. Pull down the 'File' menu at the top of the screen and select 'Save As'
2. Name file and saves as a .txt file
3. Click the button on the right 'Text Options'
4. Click on 'Comma' and 'Use Labels'
5. Click OK
6. Put disk in drive--choose--directory--OK
To open your file in Excel:
1. Open Excel
2. Use the 'File' pull-down menu and select 'Open'
3. Browse and locate drive and file name [see 'All Files]
4.
Choose, 'Delimited', then Next
5. Take the check mark off of 'Tab' and click on 'Comma', then Next
6. Click 'Finish'
7. Review Columns and Rows in Excel in comparison to your printout and adjust as needed.
II. To run a report that provides 6 years of ratio data for an industry:
A. First create an industry set
Creating Sets
- From the left toolbar menu, click on the 4th button from the bottom 'Open Screen'.
- Highlight the open screen 'Find Matching Companies by SIC' and click 'Finish' at the bottom.
- A box that helps you enter data to run the report will appear on the screen. Enter the ticker symbol and click 'OK' at the bottom of the screen.
- When the set appears, review the list of companies. Delete companies not wanted by highlighting the company name on the left and clicking remove company. To add a company to the set, enter the ticker symbol to the top right 'Add company to set' and click on 'Add Company'.
- When you are finished reviewing the list, click on the 'Save As' button under 'Save Set' in the middle of the box. Name your file as a .set file.
B. Next, run a report that will calculate the average ratios for an industry over a 6 year period:
- From the left toolbar menu, click on the 3rd button from the bottom 'Open Report' .
- Scroll down the list of folders and double click on the folder that is titled 'Sector and Industry Reports'.
- Highlight the report 'Average Annual Ratio for a User Defined Set' and click 'Finish' at the bottom.
- When you are asked to enter a Report Time Period, leave as Current Period and click OK at the bottom of the screen.
- A set box appears. Click in the set box and click on the 'Look Up' button.
- Click on the 'Sets' tab at the right of the screen. Then click on the browse button.
- Find the drive and filename and click 'OK'. The filename should appear in the set box.
You may also just type the file name in the format $"C:\msft.set" where C represents the drive you saved to and msft.set represents the filename you create.
- Click 'OK' at the bottom.
- When the report appears, click the print button.
Almanac of Business and Industrial Financial Ratios (Troy's)
MCOB Reference HF 5681 .R25 T68 [Lastest 5 years]
Industry Averages
"This title is organized according to the North American Industry Classification System (NAICS) and provides 50 performance indicators on nearly 200 industries."
Annual Statement Studies: Financial Ratio Benchmarks (Robert Morris Association)
MCOB Reference HF 5681 .B2 R6 [Lastest 5 years]
Industry Averages
"This title is organized according to the North American Industry Classification System (NAICS) and contains composite financial data. Financial statements on each industry are shown in common size, accompanied by widely used ratios. Balance sheets and income statements are shown in common size, with each item a percentage of total assets and sales (or revenues), respectively."
Industry Norms & Key Business Ratios (Dun & Bradstreet)
MCOB Reference HD 2771 .D86b [Lastest 5 years]
Industry Averages
This source provides the average ratio for an industry arranged by SIC Code.
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Last Updated: 2/12/09 DLH
