Where to find the data
If you haven't gone through our tutorial on the basics of fundamental analysis and the financial statements then you probably want to take 5 minutes and read it over.
To do ratio analysis the first step is to find the data. For the 19 ratios we will be taking you through we are using a fictitious company, Cory's Tequila Co. All the data for these examples will be provided, but when you decide to do this on your own there are several different areas that you can find the latest financial figures for a particular company. Finding financial reports and ratios is easier than ever: If you have a DisnatClassic account, log in to your account and click "Marketplace", "Research & Analytics". If you have a DisnatDirect account, log in to DDweb and select "Fundamentals" fom the "Market Data" menu.
There are also several sources on the Internet, such as:
- Company website - almost every public company has a website or investor relations department. For the most current quarterly or annual report you might want to check in these places first. Walt Disney is an excellent example of a company that uses the web to get information out to shareholders and prospective investors. It took no time at all to find the link to their investor relations section at: http://thewaltdisneycompany.com/investors NOTE - This link will open in a new tab.
- Securities and Exchange Commission (SEC) NOTE - This link will open in a new tab. - The information posted in the "EDGAR" database includes the annual report (known as the 10-K), quarterly report (10-Q), and a myriad of other forms that contain every type of financial data.
- SEDAR NOTE - This link will open in a new tab. - System for Electronic Document Analysis and Retrieval
This site contains information such as financial statements, press releases and prospectuses that public companies have submitted to Canadian securities regulatory authorities.
- SEDI NOTE - This link will open in a new tab. - System for Electronic Disclosure by Insiders
This site contains reports and profiles of insiders of Canadian publicly traded companies.
- NRD NOTE - This link will open in a new tab. - National Registration Database
The Canadian Securities Administrators (CSA) created this site to help brokerage firms, and especially compliance departments, prepare for the implementation of the NRD.
- EDGAR NOTE - This link will open in a new tab. - Electronic Data Gathering and Retrieval
This site contains information that public companies have submitted to the Securities and Exchange Commission (SEC) in the United States
These are by no means the only places to find the financial statements, there are countless free and pay sites out there offering similar features. Now let's move onto the meat of this tutorial, the ratios...