More on analyzing profitability

Analyzing Financial Statements in Python

Rohan Chatterjee

Risk Modeler

Checking correlations between different ratios

This is a heat map showing the correlations between some financial ratios for real estate companies.

How to make a heat map

Making a heat map require a matrix

real_est_corr = real_estate[["Gross Margin",
                           "Operating Margin", "Debt-to-equity",
                           "Equity Multiplier", "Current Ratio"]
                         ].corr()
real_est_corr

This image shows the correlation matrix of different financial ratios of real estate companies.

How to make a correlation plot

sns.heatmap(real_est_corr)
plt.show()

This is a heat map showing the correlations between some financial ratios for real estate companies.

How to make a correlation plot

sns.heatmap(real_est_corr, annot=True)
plt.show()

This is a heat map showing the correlations between some financial ratios for real estate companies.

Multifaceted bar chart

This is a image of a bar chart in four facets showing some financial ratios of tech and FMCG companies in the years 2018 and 2019

How to make a multifaceted bar chart?

This image shows the data format required to make a multifaceted bar chart.

How to make a multifaceted bar chart?

sns.catplot(data=dataset, x="value", y="variable", row="Year", col = "comp_type",
            kind="bar")
plt.subplots_adjust(hspace=0.25)
plt.show()

This is a image of a bar chart in four facets showing some financial ratios of tech and FMCG companies in the years 2018 and 2019

Let's practice!

Analyzing Financial Statements in Python