MBA 5133: Financial Accounting Concepts (Linthicum)

for MBA 5133 / ACC 5003:

Financial Ratios Industry Level in WRDS

In Step 4, there are totally 74 variables available, which are grouped into the categories as below:

  1. Industry Return (this category contains the variable #1 to #3 as listed in the left column of the next table below)
  2. Valuation Ratios (#4-16)
  3. Profitability Ratios(#17-31)
  4. Capitalization Ratios (#32-35)
  5. Financial Soundness (#36-51)
  6. Solvency Ratios (#52-57)
  7. Liquidity Ratios (#58-61)
  8. Efficiency Ratios (#62-68)
  9. Other Ratios (#69-72)
  10. Valuation Ratios (require IBES subscription) (#72-74)

Step 4: Select Your Variables:

In Step 4: Select Your Variables: 

  • You must first select a corresponding category that contains one of the following 74 variables of interest to you. 
  • The following table may help you quickly identify which category for selecting a specific variable, as the table shows each of these 74 variables (in the left column) would be in which corresponding category (on the right column); e.g:
  • The first one (in the left column)  - Equal Weighted Industry Return should be in the "Industry Return" category.  
Select Your Variables   In Which Category
1. Equal Weighted Industry Return   Industry Return (#1-3)
2. Value Weighted Industry Return   Industry Return (#1-3)
3. The number of companies that belongs to the industry classification   Industry Return (#1-3)
4. Dividend Payout Ratio   Valuation Ratios (#4-16)
5. Trailing P/E to Growth (PEG) ratio   Valuation Ratios (#4-16)
6. Book/Market   Valuation Ratios (#4-16)
7. Shillers Cyclically Adjusted P/E Ratio   Valuation Ratios (#4-16)
8. Dividend Yield   Valuation Ratios (#4-16)
9. Enterprise Value Multiple   Valuation Ratios (#4-16)
10. Price/Cash flow   Valuation Ratios (#4-16)
11. P/E (Diluted, Excl. EI)   Valuation Ratios (#4-16)
12. P/E (Diluted, Incl. EI)   Valuation Ratios (#4-16)
13. Price/Operating Earnings (Basic, Excl. EI)   Valuation Ratios (#4-16)
14. Price/Operating Earnings (Diluted, Excl. EI)   Valuation Ratios (#4-16)
15. Price/Sales   Valuation Ratios (#4-16)
16. Price/Book   Valuation Ratios (#4-16)
17. Effective Tax Rate   Profitability Ratios(#17-31)
18. Gross Profit/Total Assets   Profitability Ratios(#17-31)
19. After-tax Return on Average Common Equity   Profitability Ratios(#17-31)
20. After-tax Return on Total Stockholders Equity   Profitability Ratios(#17-31)
21. After-tax Return on Invested Capital   Profitability Ratios(#17-31)
22. Gross Profit Margin   Profitability Ratios(#17-31)
23. Net Profit Margin   Profitability Ratios(#17-31)
24. Operating Profit Margin After Depreciation   Profitability Ratios(#17-31)
25. Operating Profit Margin Before Depreciation   Profitability Ratios(#17-31)
26. Pre-tax Return on Total Earning Assets   Profitability Ratios(#17-31)
27. Pre-tax return on Net Operating Assets   Profitability Ratios(#17-31)
28. Pre-tax Profit Margin   Profitability Ratios(#17-31)
29. Return on Assets   Profitability Ratios(#17-31)
30. Return on Capital Employed   Profitability Ratios(#17-31)
31. Return on Equity   Profitability Ratios(#17-31)
32. Capitalization Ratio   Capitalization Ratios (#32-35)
33. Common Equity/Invested Capital   Capitalization Ratios (#32-35)
34. Long-term Debt/Invested Capital   Capitalization Ratios (#32-35)
35. Total Debt/Invested Capital   Capitalization Ratios (#32-35)
36. Inventory/Current Assets   Financial Soundness (#36-51)
37. Receivables/Current Assets   Financial Soundness (#36-51)
38. Free Cash Flow/Operating Cash Flow   Financial Soundness (#36-51)
39. Operating CF/Current Liabilities   Financial Soundness (#36-51)
40. Cash Flow/Total Debt   Financial Soundness (#36-51)
41. Cash Balance/Total Liabilities   Financial Soundness (#36-51)
42. Cash Flow Margin   Financial Soundness (#36-51)
43. Short-Term Debt/Total Debt   Financial Soundness (#36-51)
44. Profit Before Depreciation/Current Liabilities   Financial Soundness (#36-51)
45. Current Liabilities/Total Liabilities   Financial Soundness (#36-51)
46. Total Debt/EBITDA   Financial Soundness (#36-51)
47. Long-term Debt/Book Equity   Financial Soundness (#36-51)
48. Interest/Average Long-term Debt   Financial Soundness (#36-51)
49. Interest/Average Total Debt   Financial Soundness (#36-51)
50. Long-term Debt/Total Liabilities   Financial Soundness (#36-51)
51. Total Liabilities/Total Tangible Assets   Financial Soundness (#36-51)
52. Total Debt/Equity   Solvency Ratios (52-57)
53. Total Debt/Total Assets   Solvency Ratios (52-57)
54. Total Debt/Total Assets   Solvency Ratios (52-57)
55. Total Debt/Capital   Solvency Ratios (52-57)
56. After-tax Interest Coverage   Solvency Ratios (52-57)
57. Interest Coverage Ratio   Solvency Ratios (52-57)
58. Cash Conversion Cycle (Days)   Liquidity Ratios (#58-61)
59. ash Ratio   Liquidity Ratios (#58-61)
60. Current Ratio   Liquidity Ratios (#58-61)
61. Quick Ratio (Acid Test)   Liquidity Ratios (#58-61)
62. Asset Turnover   Efficiency Ratios (#62-68)
63. Inventory Turnover   Efficiency Ratios (#62-68)
64. Payables Turnover   Efficiency Ratios (#62-68)
65. Receivables Turnover   Efficiency Ratios (#62-68)
66. Sales/Stockholders Equity   Efficiency Ratios (#62-68)
67. Sales/Invested Capital   Efficiency Ratios (#62-68)
68. Sales/Working Capital   Efficiency Ratios (#62-68)
69. Accruals/Average Assets   Other Ratios (#69-72)
70. Research and Development/Sales   Other Ratios (#69-72)
71. Avertising Expenses/Sales   Other Ratios (#69-72)
72. Labor Expenses/Sales   Valuation Ratios (require IBES subscription) (#72-74)
73. Forward P/E to 1-year Growth (PEG) ratio   Valuation Ratios (require IBES subscription) (#72-74)
74. Forward P/E to Long-term Growth (PEG) ratio   Valuation Ratios (require IBES subscription) (#72-74)