A glimpse into financial ratios of some industries
Analyzing Financial Statements in Python
Rohan Chatterjee
Risk Modeler
Average current ratio
- Current ratio = $\dfrac{\text{Current Assets}}{\text{Current Liabilities}}$
- Average Current Ratio of the industries:
balance_sheet["current_ratio"] = balance_sheet["Total Current Assets"]/ balance_sheet["Total Current Liabilities"] balance_sheet.pivot_table(index="comp_type", values="current_ratio")
Average debt-to-equity ratio
- Debt-to-equity ratio = $\dfrac{\text{Total liabilities}}{\text{Total shareholders equity}}$
- Average Current Ratio of the industries:
balance_sheet["debt_to_equity"] = balance_sheet["Total Liabilities"]/ balance_sheet["Total Shareholders Equity"] balance_sheet.pivot_table(index="comp_type", values="debt_to_equity")
Visually compare ratios with industry average
Making the bar plot
plot = balance_sheet_tech.pivot_table(index="company", values = "current_ratio",
margins = True).reset_index()
plot
Making the bar plot
sns.barplot(data=plot, x = "company", y = "current_ratio")
plt.ylabel("Current Ratio"), plt.xlabel("Company")
plt.show()
