The Calcbench Insider: November 2016
An early happy Thanksgiving to all. As always,
Calcbench was busy last month expanding our product lineup and dabbling in financial data research. Whether you're new to our products or looking to learn more about how we can improve your day-to-day, we hope you find the information below useful.
Sign up here for a free Calcbench trial. As always, your feedback is welcome.
All the best,
The Calcbench Team
What’s New in Calcbench
Our new adjusted ROE model. Good news for financial analysts: Calcbench has created a valuation model for
adjusted return on equity, so you can do a better, apples-to-apples comparison among companies when studying ROE. Our model is available to subscribers upon request (since we need to configure a few elements to make it work for you), and it accounts for variables such as leasing expenses, pension adjustments, and inventory values.
Read more to see how it works.
Working with our Revised Facts feature. Everyone makes mistakes, including in financial statements. This month we give you a walk-through of our ‘Highlight Revised Facts’ feature, which lets you see the small, immaterial adjustments to financial filings that companies make from quarter to quarter.
Take a look at how it works and how to use it.
The Calcbench Earnings Indicator. We have revamped the presentation of our Earnings Indicator to track the fluctuation of corporate earnings (and revenue, and cash) from one quarter to the next through history.
Currently, not enough companies have filed to make this data meaningful but if you check back in just one week, you can start to see how all three metrics have shifted over time, going back 5.5 years. Read more inside.
Geeking Out on Data
Time between filing the earnings release and the 10-Q. Ever wonder how much time companies take between filing their earnings release and then following up with the Form 10-Q to report those earnings? We did, so we did some digging. While the average time gap in second-quarter 2016 was four days, when you look into the data more deeply, you find a certain population of filers who are quick on the draw to file both.
Read more inside.
Effect of the new stock option rule. A new approach to reporting stock option expenses and tax benefits goes into effect next month, with the aim of moving tax benefits off the balance sheet and on to the income statement. That will likely make some companies’ income statements more volatile—but exactly which ones, and potentially how volatile? We ran the numbers and have the results. Read our post and
see who has the most at stake.
Who’s doing how much business in China. To demonstrate our Segments & Breakouts database, we recently looked at how much business U.S. filers are reporting specifically from China. We examined Property, Plant & Equipment disclosures ($21.1 billion reported for 2015), as well as total revenue reported from that country ($118.1 billion).
See who reported what inside.
Financial Reporting in the News
Non-GAAP in the news yet again. The drumbeat of news about non-GAAP accounting metrics relented a bit earlier this fall. Well, that’s over. A recent
Wall Street Journal article says the SEC is eyeballing numerous companies to see whether their reporting of non-GAAP metrics misleads investors. This legal bulletin recaps the
Public Company Accounting Oversight Board’s latest discussion on non-GAAP. And don’t forget
Calcbench’s own study of non-GAAP metrics for net income, published over the summer.
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