Financial Metrics

Financial Metrics Package provides a range of tools for calculating and analyzing various financial ratios from annual reports. This package includes modules for liquidity ratios, profitability ratios, efficiency ratios, market value ratios, leverage ratios, and cash flow ratios.

Installation

Prerequisites

• Python 3.8 or higher
• pip

Steps

1. Clone the repository:

   git clone https://github.com/martinthetechie/financial-metrics

2. Navigate to the project directory:

   cd financial-metrics

3. Install dependencies:

   If using pip:

   pip install -r requirements.txt

   If using poetry:

   poetry install

Usage

1. Import the Functions

   from financial_metrics.liquidity_ratios import cash_ratio,current_ratio,quick_ratio
   from financial_metrics.profitability_ratios import gross_profit_margin, net_profit_margin, return_on_assets, return_on_equity
   from financial_metrics.efficiency_ratios import inventory_turnover, receivables_turnover, asset_turnover_ratio, accounts_payable_turnover, days_sales_outstanding
   from financial_metrics.market_value_ratios import price_to_book, price_to_earnings, price_to_earnings_growth, dividend_yield
   from financial_metrics.leverage_ratios import debt_ratio, debt_to_equity_ratio, interest_coverage_ratio
   from financial_metrics.cash_flow_ratios import free_cash_flow, operating_cash_flow_ratio

2. Pass in Parameters

    from financial_metrics.liquidity_ratios import current_ratio
   
    # Example data
    current_assets = 500000
    current_liabilities = 300000
    
    # Calculate the Current Ratio
    current_ratio_value = current_ratio(current_assets, current_liabilities)
    print(f"Current Ratio: {current_ratio_value}")

3. Calculativng Individual Ratios

• Liquidity Ratios

  current_ratio_value = current_ratio(current_assets,current_liabilities)
  quick_ratio_value = quick_ratio(current_assets,current_liabilities,inventory)
  cash_ratio_value = cash_ratio(cash,cash_equivalents,current_liabilities)

• Profitability Ratios

  gross_profit_margin_value = gross_profit_margin(gross_profit, revenue)
  net_profit_margin_value = net_profit_margin(net_income, revenue)
  return_on_assets_value = return_on_assets(net_income, total_assets)
  return_on_equity_value = return_on_equity(net_income, equity)

• Efficiency Ratios

  inventory_turnover_ratio_value = inventory_turnover(cogs, average_inventory)
  receivables_turnover_ratio_value = receivables_turnover(net_credit_sales, average_accounts_receivable)
  asset_turnover_ratio_value = asset_turnover_ratio(net_sales, average_total_assets)
  accounts_payable_turnover_ratio_value = accounts_payable_turnover(cogs, average_accounts_payable)
  days_sales_outstanding_value = days_sales_outstanding(average_accounts_receivable, net_credit_sales)

• Market Value Ratios

  price_to_book_value = price_to_book(price_per_share, book_value_per_share)
  price_to_earnings_value = price_to_earnings(price_per_share, earnings_per_share)
  price_to_earnings_growth_value = price_to_earnings_growth(price_per_share, earnings_per_share, price_to_earnings_growth_rate)
  dividend_yield_value = dividend_yield(dividends_per_share, price_per_share)

• Leverage Ratios

  debt_ratio_value = debt_ratio(total_debt, total_assets)
  debt_to_equity_ratio_value = debt_to_equity_ratio(total_debt, total_equity)
  interest_coverage_ratio_value = interest_coverage_ratio(earnings_before_interest_and_tax, interest_expense)

• Cash Flow Ratios

  free_cash_flow_value = free_cash_flow(operating_cash_flow, capital_expenditures)
  operating_cash_flow_ratio_value = operating_cash_flow_ratio(net_cash_flow_from_operations, current_liabilities)

License

This project is licensed under the MIT License - see the LICENSE file for details.

Contact

• Author: Martin Tan
• Email: martinthetechie@gmail.com
• GitHub: https://github.com/martinthetechie