TO-DO: Financial Ratio Metrics and Ranking the Dow

i am working on an open-source project at https://sourceforge.net/p/aliceas/home/

known as alice that takes scraped data from the edgar.sec.gov and ranks the data according to the following ratios:

Liquidity Measures:

current assets divided by current liabilities

current assets – inventory/ current liabilities

cash/current liabilities

net-working capital/total assets

total costs/365

solvency measures:

assets-equity/assets

total debt/total equity

total assets/total equity

long-term debt/long-term debt+total equity

EBIT/interest

ebit+depreciation/interest

i am using various metrics commonly used to analyze corporate financial statements, and have come up with a proprietary ranking algorithm that applies to both large and small cap companies by virtue of the ratio rating system meaning a ration would be equivalent no matter the scale of size of the company.  i am currently restricting my analysis to the dow and am facing two main obstables in my solution, one is to scrape data from the sec database or manually enter this data through data keyboard entry.  the other being the use of multi-variate ranking variables or more than one ratio to determine the best of or worst of for that criteria set.  i am publishing this formulaic data series because of it’s common use in financial analysis and the prospect of scoring the performance of nyse, dow, or s&p 500 or nasdaq against a pattern rate of return or the compensated weight of market psychology versus empricial series of data.  in this case the variation from the set mean would indicate the quantum or the amount of variation as a result of market psychology.  however, i am releasing it as a for free open source publication because of liability incurrable in promoting stock predictions.

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2 responses to this post.

  1. I’ve found website called xignite that offers XML versions of these metrics versus hard coding with data entry. The basic service is enough to collect on all NYSE with 60,000 hits allowed. I am in particular looking for benchmarks for these figures + profitability curves ranking many variables at once such as low p/earnings ratio debt/equity so forth. I am planning to publish this as website but no promises, may just end up as .py script

    Reply

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