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RATIOS & STATISTICS / PROFITABILITY
ROI%(offset,type[,NAHandling])
Full Description

This value is the ratio of Net Income Before Extraordinary Items plus the taxable portion of the Interest Expense, divided by the average Total Long Term Debt and Shareholders Equity, expressed as a percentage for the period. The denominator is measured as the average at the beginning and the end of the period.

Formula:

ROI% = 100 * ( NetIncBXor + IntExp * (1 - TaxRate) ) / (a0 + a1) / 2

a0 = ( DbtTot + EqTot ) end of period
a1 = ( DbtTot + EqTot ) beginning of period
TaxRate: country specific (ex: USA 21%, CAN 26.5%, IRL 12.5%)

IMPORTANT: Quarterly values from Income & Cashflow statements are annualized to make the resulting factor more readily comparable with 12 month factors. The annualization is done by multiplying the quarterly figures by approximately 4 (depends on the actual number of days in the period).


Source and Availability

The data points come from SEC filings or earnings announcements of a company (click here for the line-item reference spreadsheet). Since the data is "standardized" by the data provider the exact number may not exist in the original source. The data is usually a single line-item (see the link at the end for an excel spreadsheet with details). There are two access methods: prebuilt factors and using a function syntax.

When using the function syntax you specify the historical period using parameters in parenthesis as follows:

function(offset,type[,NAHandling])

offset: 0-20 (for interim) 0-10 (for annual)
type: QTR (for interim), ANN (for annual), TTM (for trailing twelve months)
NAHandling: [FALLBACK],KEEPNA,ZERONA

For types QTR & ANN the value is taken straight out of the filing with the corresponding offset, ex: 0 is most recent, 1 is previous, etc. TTM types are computed in two ways: for income and cash flow statement values are calculated by adding four quarterly values. For balance sheet items, TTM is the average of the trailing four quarters.

The NAHandling parameter is optional and is used to control what happens in preliminary reports where many items could be missing. Preliminary reports are press releases by the company and only affect the most recent ("0") offset period. They can last several weeks and can cause false signals due to incomplete data (see "CompleteStmt" for a way to identify companies with preliminary data).

Three options are available when an NA is found in a preliminary report:

 

FALLBACK this is the default. When an NA is encountered the value is pulled from the offset "1" period.
KEEPNA do nothing. NAs will be preserved, which can cause the entire expression to fail.
ZERONA NAs are converted to 0


Pre-built factors are available for convenience and correspond to the following formula syntax:

 

Period Description Corresponding Parameters
Q Recent Quarter (0, QTR)
PQ Prior Quarter (1, QTR)
PYQ Prior Year quarter (4, QTR)
TTM Trailing Twelve Months (0, TTM)
PTM Prior Trailing Twelve Months (4, TTM)
A Recent Annual (0, ANN)
PY Prior Year (1, ANN)
Gr%PQ Growth % PQ (0, QTR) / (1, QTR)
Gr%PYQ Growth % PYQ (0, QTR) / (4, QTR)
Gr%TTM Growth % TTM (0, TTM) / (4, TTM)
Gr%PQTTM Growth % TTM 1Q Ago (0, TTM) / (1, TTM)
Gr%A Growth % Annual (0, ANN) / (1, ANN)
Gr%3Y Growth % 3 year (0, ANN) / (3, ANN) annualized
Gr%5Y Growth % 5 year (0, ANN) / (5, ANN) annualized
Gr%10Y Growth % 10 year (0, ANN) / (10, ANN) annualized
RSD%ANN RSD % 10Y of annuals

LoopRelStdDev
("function(CTR,ANN)",10,0,1,1))

RSD%TTM RSD % 5Y of TTM LoopRelStdDev
("function(CTR*2,TTM)",10,0,1,1))
RegEstTTM Regression Est 5Y Eval(LinReg("function(CTR * 2, TTM)", 10)
, EstimateY(0), NA)
RegGr%TTM Regression Gr% 5Y Eval(LinReg("function(CTR * 2, TTM)", 10)
,RegGr%(2), NA)
RegEstANN Regression Est 10Y Eval(LinReg("function(CTR, ANN)", 10)
, EstimateY(0), NA)
RegGr%ANN Regression Gr% 10Y Eval(LinReg("function(CTR, ANN)", 10)
,RegGr%(1), NA)
%SalesQ % of Q Sales function(0, QTR) / Sales(0, QRT)
%SalesA % of A Sales function(0, ANN) / Sales(0, ANN)
%AssetQ % of Q Assets function(0, QTR) / AstTot(0, QRT)
%AssetA % of A Assets function(0, ANN) / AstTot(0, ANN)
PSQ Per Share Q function(0, QTR) / Shares(0, QRT)
PSA Per Share A function(0, ANN) / Shares(0, ANN)
5YAvg 5 Year Average LoopSum("function(CTR, ANN)", 5) / 5


NOTE: PTM offset is 4 , not 1, since it uses interim periods

Click Here for the Line-Item Reference Spreadsheet.