- Liquidity Ratios: These ratios measure a company's ability to meet its short-term obligations. The current ratio (Current Assets / Current Liabilities) is a common one. A current ratio of 1.5 or higher generally indicates good liquidity. The quick ratio (also known as the acid-test ratio) is similar but excludes inventory from current assets, providing a more conservative measure of liquidity.
- Solvency Ratios: These ratios assess a company's ability to meet its long-term obligations. The debt-to-equity ratio (Total Debt / Total Equity) is a key solvency ratio. A high debt-to-equity ratio may indicate that a company is highly leveraged and may have difficulty meeting its debt obligations.
- Profitability Ratios: These ratios measure a company's ability to generate profits. The gross profit margin (Gross Profit / Revenue) indicates how efficiently a company is managing its production costs. The net profit margin (Net Income / Revenue) shows how much profit a company is generating for each peso of revenue.
- Efficiency Ratios: These ratios measure how efficiently a company is using its assets to generate revenue. The asset turnover ratio (Revenue / Total Assets) indicates how much revenue a company is generating for each peso of assets. The inventory turnover ratio (Cost of Goods Sold / Inventory) shows how quickly a company is selling its inventory.
SUM: Adds up a range of numbers. Useful for calculating totals in your financial statements.AVERAGE: Calculates the average of a range of numbers. Useful for finding the average of financial ratios over time.IF: Performs a logical test and returns one value if the test is true and another value if the test is false. Useful for flagging potential issues in your financial statements (e.g.,=IF(A2>1.5,“Good”,“Warning”)to flag current ratios above or below 1.5).VLOOKUP: Searches for a value in the first column of a range and returns a value in the same row from a specified column. Useful for pulling data from different sheets or tables.IMPORTRANGE: Imports a range of cells from another Google Sheet. Useful for consolidating data from multiple sources.- Line charts are great for tracking financial ratios over time. You can easily see whether a ratio is trending up, down, or staying relatively stable.
- Bar charts are useful for comparing financial performance across different companies or different periods.
- Pie charts can be used to show the composition of a company's assets or liabilities.
- Scatter plots can be used to identify correlations between different financial variables.
Analyzing financial statements can feel like navigating a complex maze, but PSE (Philippine Stock Exchange) financial data combined with the power of Google Sheets can make it a whole lot easier, guys. Let's dive into how you can leverage Google Sheets to dissect and understand PSE-listed companies' financial health. We're talking about turning raw data into actionable insights – think of it as leveling up your investment game.
Gathering PSE Financial Data
First things first, you'll need to get your hands on the data. The PSE website (https://edge.pse.com.ph/) is your primary source for official financial statements, guys. You can usually find quarterly and annual reports for listed companies there. Look for SEC Form 17-Q (quarterly) and SEC Form 17-A (annual). These reports contain the balance sheets, income statements, and cash flow statements you'll need.
Another way to grab the data is through financial data providers, some of which offer APIs or downloadable data specifically for PSE-listed companies. These often come at a cost, but they can save you a ton of time and effort in the long run, especially if you're doing this regularly. Make sure the data provider you choose is reputable and offers accurate, up-to-date information, okay?
Once you've got your data, the next step is to import it into Google Sheets. You can manually copy and paste the data, but if you're dealing with a lot of information, this can be tedious and error-prone. A better approach is to use the IMPORTHTML or IMPORTDATA functions in Google Sheets if the data is available in a tabular format online. If you have a CSV file, you can easily import it by going to File > Import and selecting the file from your computer or Google Drive. Remember to clean and format the data once it's in Google Sheets to ensure accuracy and consistency, guys.
Setting Up Your Google Sheet
Organization is key, guys! Start by creating separate sheets for each financial statement: Balance Sheet, Income Statement, and Cash Flow Statement. Within each sheet, organize the data into columns that correspond to the line items in the financial statement (e.g., Cash, Accounts Receivable, Revenue, Cost of Goods Sold, etc.). Use clear and concise headings for each column to avoid confusion.
Consider creating a separate sheet for key financial ratios. This is where you'll calculate metrics like the current ratio, debt-to-equity ratio, profit margin, and return on equity. By having a dedicated sheet for these ratios, you can easily track them over time and compare them to industry benchmarks.
Use formatting to make your spreadsheet easier to read, guys. Use bold text for headings, different colors for different sections, and borders to separate data. This will not only make your spreadsheet look more professional but also help you quickly find the information you need.
Analyzing Key Financial Ratios
Okay, let's get to the juicy part – analyzing the data! Key financial ratios are your best friends here, guys. They give you quick snapshots of a company's liquidity, solvency, profitability, and efficiency.
Using Google Sheets, you can easily calculate these ratios by creating formulas that reference the appropriate cells in your financial statement sheets. For example, to calculate the current ratio, you would enter the formula =‘Balance Sheet’!B2/‘Balance Sheet’!C2 (assuming that current assets are in cell B2 and current liabilities are in cell C2 of the Balance Sheet sheet). You can then copy and paste this formula down the column to calculate the current ratio for multiple periods.
Using Google Sheets Formulas and Functions
Google Sheets is packed with features that can streamline your financial analysis. Here are a few essential formulas and functions you should know:
Learn how to use these formulas and functions, and you'll be a Google Sheets wizard in no time, guys. There are tons of online tutorials and resources available to help you get started.
Visualizing Data with Charts and Graphs
Numbers can be boring, guys. Visualizing your data with charts and graphs can make it much easier to spot trends and patterns. Google Sheets offers a variety of chart types, including line charts, bar charts, pie charts, and scatter plots.
To create a chart in Google Sheets, simply select the data you want to visualize and then click the
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