Business Ratios

In seeking out ratios for companies I would be reluctant to use free web-based services. The University of Manchester Library pays subscriptions to allow current students and staff to use numerous specialised financial databases. These are trusted sources, used for academic research and by commercial businesses.

The following databases are easy to use for obtaining ratio data.

 

Thomson ONE

 

Once a company has been searched for (see search box highlighted) and overview screen displayed, Key Ratios are shown. There is also a link for ‘All Ratios’.

T1cor

All Ratios.

It is preferable to select ‘Annual’ as Report Type – this selection option is revealed from the icon on the right of the screen. Ratios are grouped into a number of categories: Valuation Measures, Valuation, Enterprise Value, Credit Statistics, Liquidity Leverage, Profitability, Efficiency, Management Effectiveness, Dividend, Growth Rates and Stock Performance.

T1allr

 

Fame

 

Search for a company and display the Report.

FameRep

It is then a simple matter of scrolling down to the section on Ratios. These are grouped into a number of categories: Profitability, Operational, Structure and Per Employee.

FameSra

 

Bloomberg Professional

 

On the command line (top left of the screen) type the company identifier (quote/ticker symbol: TSCO LN = Tesco PLC on the London stock exchange), category of information via yellow market sector key (F8/Equity – company related) and function code (FA for Financial Analysis), followed by the green Enter/GO key. Click on the ‘ratios’ tab.

TSCO LN F8/Equity FA               ‘Ratios’ is further divided (e.g. Profitability displayed).

BbFAr

Hover over a ratio and right click, select ‘Definition’ for further detail (e.g. ‘Return on Common Equity’).

BbFArDef

A different grouping of Ratios can be obtained from the Security Description [DES] function and the ‘Ratios’ tab.

BbDESr

 

Datastream

 

It is also possible to obtain ratio details from Datastream, but is a little more involved than the databases noted above.

A basic breakdown of a few ratios are displayed from the ‘Overview of Company Performance’ analysis option for the Equities (Company) Data Category.

More specific searches are possible for multiple Series (companies) and Datatypes (various ratios, for example) from the Excel Add-In version of Datastream.

For students at the University of Manchester we run regular Datastream training courses and other support material is available in the Database Suite.

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