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ValuStox Pro Standard Graphs and SIC Comparable Data
ValuStox Pro computes three standard graphs, plus a summary graph, that compare key financial ratios to benchmark ratios for the same Standard Industrial Classification (SIC) code.

The first graph shows profitability, in this case Google, Inc. (symbol GOOG) for the quarter ending March 31, 2007. Each profitability metric is compared against its peer group, "Information Retrieval Services (SIC code 7375) which contains 125 companies:

We can tell at a glance that Google is doing better than its peer group. Note that a number of the returns (such as ROE) are stated on a quarterly (not annual) basis, so the annualized number may be four times as large if this is an average quarter.

The next graph shows liquidity, or Google's ability to meet its short-term obligations:

Google is obviously quite liquid: It's current ratio (current assets divided by current liabilities) is quite high compared to its peer group, receivables are turning over more rapidly, and most assets are current as opposed to fixed. It also requires less working capital than its peer group.

Finally we look at debt and miscellaneous ratios:

In this case Google has almost no debt, and thus the "Times Interest Earned" value is enormously large, so we uncheck the "Show large values" box to make the graph more readable. Google is doing quite very well in this area also.

Spredgar Software's mission is to provide unbiased financial investment data for the private investor, the professional analyst, and the academic. Gordon Gerwig, founder of Spredgar Software, has a B.S. in Electrical Engineering and Computer Science from the University of California at Berkeley and an M.B.A. in Finance from the University of California at Davis. Gordon Gerwig and Spredgar Software have been written up in Online Investing for Dummies, Online Investing Hacks, and in the Innovator, the U.C. Davis Graduate School of Management's alumni magazine. Gordon is an individual investor and a member of the American Association of Individual Investors (AAII). He is a CERTIFIED FINANCIAL PLANNER, a Licensed International Financial Analyst (LIFA) , and is an associate member of the CFA Institute. He has worked in financial services as a advisor for Morgan Stanley and American Express. He has experience in small business lending, valuation and consulting.

 

Updated 06/27/2009 10:57:23 PM
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