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Analyzing Financial Statements in Python

Course Link

Use this workspace to take notes, store code snippets, or build your own interactive cheatsheet! For courses that use data, the datasets will be available in the datasets folder.

# Import any packages you want to use here

The Balance Sheet

In this chapter, you will learn how to read and interpret a balance sheet and compute and use financial ratios to evaluate a company's performance using information from the balance sheet. Additionally, you'll gain hands-on experience using the powerful pandas data manipulation package to analyze a company's financial ratios and compare them to its peers in the industry.

Match balance sheet items to their class

  • Current assets refer to the class of assets that usually reap benefits in one year.
  • Current liabilities are those burdens that must be paid off in one year.
  • Non-current assets reap benefits over a period of one year
  • Non-current liabilities can be paid off over a period of one year.
# Add your code snippets here
accounts_receivable = 1298
accounts_payable = 500
short_term_loans = 3357
long_term_loans = 8000
inventory = 5420
long_term_investments = 7892
property_plant_equipment = 9840

# Add up total current assets
total_current_assets = accounts_receivable + inventory
print(total_current_assets)

# Add up total non-current assets
total_non_current_assets = long_term_investments + property_plant_equipment
print(total_current_assets)

# Add up total current liabilities
total_current_liab = accounts_payable + short_term_loans 
print(total_current_liab)

# Add up total non-current liabilities
total_non_current_liab = long_term_loans
print(total_non_current_liab)

Total Liabilities

Compute the total_liabilities using current_assets, non_current_assets, and shareholders_equity.

current_assets = 1500
non_current_assets = 3000
shareholders_equity = 1200

# Compute total liabilities
total_liabilities = current_assets + non_current_assets - shareholders_equity
print(total_liabilities)