Skip to content

DATA IMPORTING AND MANIPULATION

Importing necessary components

import numpy as np
import pandas as pd
import seaborn as sns

Reading Balance Sheet Data

balance_sheet = pd.read_excel("data/Balance_Sheet.xlsx", index_col=0)
balance_sheet

Reading Income Statement Data

income_statement = pd.read_excel("data/Income_Statement.xlsx", index_col=0)
income_statement

Merging Data

df_ratios = pd.merge(income_statement, balance_sheet, on = ["Year", "company", "comp_type"])
df_ratios

RATIOS CALCULATION

Calculation of the profitability ratio

# Compute gross margin ratio
df_ratios["profitability_ratio"] = (df_ratios["Total Revenue"] - df_ratios["Cost Of Goods Sold"])/df_ratios["Total Revenue"]
df_ratios

Calculation of the leverage ratio

# Compute debt-to-equity ratio
df_ratios["leverage_ratio"] = df_ratios["Total Liab"]/df_ratios["Total Stockholder Equity"]
df_ratios

EXPLORATORY ANALYSIS

‌
‌
‌