Notes
- Balance sheet
- “snapshot” of a company’s financial condition
- Businesses can be considered to be, for accounting purposes, sums of liabilities and assets
- Assets = Liabilities + Equity
- This often is seen on balance sheets that the numbers below these categories will be the same
Don’t understand this from a mental point of view. How can what you have/own (assets) always add up to what you owe (liabilities, technically a neg number), and your equity (similar to assets?). How is equity diff from assets?
Net Worth- Would be like me taking value of my car, goods, house, etc, and subtracting what I owe, and seeing how much I am ‘worth’ on paper
- Assets - Liabilities = Net Worth
- = Equity also. Does net worth mean the same thing as equity? YES
- = Book value
- != market value
IDEA: Measure ratio of net worth to avg stock valuation, see if they match. Do this over time, over many quarters, look for trends. This may be able to tell if a stock is currently over or under valued. Therefore allowing one to buy $1.00 for .50 cents.
- Market Value
- how prices are determined in real life (competitive environment)
- http://en.wikipedia.org/wiki/Walrasian_auction - perfectly matches the supply and the demand
- Stocks and Bonds
- aka equity and debt
- Investing
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- GM swing investing
What I did
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- made change to link asset word mention to its page
- re-arranged beginning paragraph to more directly define ownership equity FIRST, instead of at the end of the paragraph
- made change to Balance_sheet, added link to ownership equity, instead of plain equity-abstraction page
- checked out apples balance sheet http://images.apple.com/pr/pdf/q108fin_statements.pdf
- noticed it had 2 months or quarters of balance numbers listed
- would like to use compustat and excel to output many quarters or years of balance sheets (primarily equity) to compare by eye. See if I think it will keep moving up, and get apple out of the slump it is currently in
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- made change to add link to market value
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- Compustat Alternative - Nothing found from short search
- Research Insight
- Ran report on single company, AAPL (of course, im like obssessed with them)
- Wanting to get multiple time periods, one company
- report on Historical analysis, Time vs items For a company
- made new type of report type, wanted balance sheet quarterly NOT annually; done in Custom Item Groups window, copied type from former annual balance sheet, modified.
- Unsuccessful in getting quarterly at first
- compared output to current apple balance sheet
- went up, hard to tell how much, need graph
- Graph of balance sheet
- showed upward curve, need to compare to upward curve of stock market price
- what does crossing of liabilities and equity back in 1998 mean?
- Graph for comparison
- Read compustat guide
- excel plugin not working on lib computer 21
- Successfully created QUARTERLY new group of report items via method shown in this pic
- Created graph from same report data in Research Insight
- Excel import and working
