David and Goliath: Royal Dutch Shell taking over BG-group

To be honest, I was a little bit disappointed when I saw the 3D-graph I generated for Royal Dutch Shell and BG-group. As discussed in the previous post, this acquisition was completed and the 2016 Annual Report presented the consolidated numbers. Unlike some other mergers & acquisitions this one was not too recent and not too old either.

Why should I be disappointed then? Well, it turns out BG-group was much, much smaller than Royal Dutch Shell. Of course I knew, and although I saw the numbers I didn’t fully realise that the BG-group’s revenue was only about 6% of the revenue of Royal Dutch Shell. Maybe the profit was misleading me, because in 2015 the profit of the BG-group was about 77% of Shell’s profit, so almost the same in absolute values. But then equity and total assets were very different again – BG showing only 1/5th or 1/6th of Shell’s values. Last time I presented a piece of a spreadsheet, now the format of the input-file is below:

input-file Shell BG

 

 

 

 

A warning first: there is a risk whem looking at the graph. It is a 3D-graph, but it doesn’t mean the volume is meaningful. The three dimensions should be compared separately between the companies, although the relative sizes can be compared within one “building”.

E.g. the shape of the floor indicates a kind of gearing ratio (here Equity/Total Assets, but Equity could be replaced by Liabilities easily to get other ratios – of course then then those values have to be replaced for all companies and all years). A company about ten times smaller than another would be smaller in all three dimensions, but this doesn’t mean it’s 1000 times smaller as the volume would suggest.

Talking about ratios: if we havShell BG bottome a look at the shape of the bottoms for both (2015 taken), it seems to be very similar for both.

 

 

Shell BG front

Looking at the front-side, we see a huge difference between the revenue-levels.

 

 

 

However, the profit (the green roof) is more or less of the same size in 2015. This means the absolute values of the profits of both companies were not very different! profit Shell BGIn this graph (just double-click one of the pictures to see the real 3D-graph), the four values of both companies were added for the years before the year of the acquisition. This means the sum of the revenue, the sum of the profit, the sum of the equity and the sum of the total assets was taken for 2014 and 2015. Formally the same was done for 2016, but then Royal Dutch Shell published the consolidated values and the values for the BG-group became all zero, so for 2016 the combination is equal to Royal Dutch Shell.

Of course we cannot simply add the values, because mergers and acquisitions usually lead to an outflow of money to shareholders. Apart from this, it was the period in which the oil-price dropped and put a lot of pressure at the results. Still it’s interesting to show a combined set of values. And although Royal Dutch Shell is more like Goliath, with BG-group being more like David, the profit was an interesting part of the comparison.

Do you want to create this kind of graphs yourself? It’s easy with the free demo-package. It contains a generator, a manual and a couple of examples of input- and output-files (3D-graphs in 3D format). Visiting our website is a more lazy option and of course the pictures above are clickable. Double clicking will bring up the real 3D-graph in your browser (webGL and Javascript need to be enabled). Do you want a licence for the generator with full functionality? Please contact us – the current price is shown at our website. Are you a professor at a university (or a university of applied sciences)? Please contact us: we do offer some free licenses for educational purposes.

Manipulating the graphs is easy: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.
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Mergers and Acquisitions: Royal Dutch Shell and BG-group

A couple of weeks without a post to this blog: I think I have to explain something. Apart for a storm hitting Almere and causing some damage, I also had to spend my time on something else.

Some of you may know that my previous company, including its product VRBI, was transferred to one of my sons. VRBI basically offers a generator able to create 3D scatter-plots (showing balls in their x-, y- and z-position in a cube). My son graduated on the subject recently, working on his own company with VRBI very seriously. However, his problem was that VRBI was “invented” to solve problems I noticed and as a result I am the one able to come up with all kinds of applications. He was trying to convert numbers from a report into graphs, but it turned out the authors had provided two-dimensional information only, because they had to present 2-D graphs (they should have used VRBI in the first place of course). As a result hardly any usable information was left.

So he asked me to provide some real 3-D examples and of course this meant I had to look for data-sets with x, y and z-values. I found some interesting examples and created graphs (one even as 4D, with the size of the balls, being determined by the fourth value. Working on those graphs, I encountered a problem existing for years: some data need to be shifted and ask for a threshold-value like in Excel. I couldn’t stand it any more and added the functionality, but it took some time. If you are interested in VRBI, please have a look at scientassist.com or vrbi.eu (same site). For once I present a VRBI-graph instead of an AnRep3D example.

3D-graph of stock-funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Beware! This is not an AnRep3D graph, although the principle is the same.  Double click the screenshot to open the real 3D-graph first and manipulate its position:

Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

The previous text wasn’t AnRep3D at all of course, so now it’s time to go on with examples of the power of the AnRep3D generator.

Last time, I discussed the possibility to visualise mergers and acquisitions. More illustrations are necessary and that’s why I colleded a couple of examples. Wikipedia provides some, but then not all mergers or acquisitions are completed yet (Bayer Monsanto is still going on, as is AT&T Time Warner at this moment). Even if they were completed, this doesn’t mean a consolidated Annual Report is available yet. E.g. Anheuser-Busch InBev acquired SAB Miller, but this was completed at the end of 2016, which means the 2017 annual report will show the consolidated results. This annual report will be available shortly, probably next month, but not right now!

That’s why I had to look at more historical events. Useful examples are Heinz taking over Kraft, Dell acquiring EMC corporation and Royal Dutch Shell acquiring BG-Group. The latter completed at the start of February 2016 and therefore the 2016 Annual Report shows the consolidated numbers of the combination (although the BG-part was left out for January, but the statement says it’s not substantial). Let’s start with this one, which I watched closely as I worked with Shell at the time. This means only I’m very interested – my numbers will be taken from the Annual Reports only. Be aware: don’t draw conclusions using this blog as I am merely illustrating the power of AnRep3D, without giving any guidance on numbers. So please have a look at the annual reports yourself if you want to know more. The links used are:

2016 RD Shell http://reports.shell.com/annual-report/2016/servicepages/disclaimer.php Provides access to P&L and Balance sheet
2015 RD Shell http://reports.shell.com/annual-report/2015/servicepages/disclaimer.php Provides access to P&L and Balance sheet
BG group 2015 https://www.shell.com/investors/financial-reporting/pre-combination-bg-group-publications/_jcr_content/par/textimage.stream/1465198077682/f7a5adacb4a76d474248cbe47d20afebdf0f1ce1c82fd5c7ff7d0620350b88cf/bg-group-2015-annual-report.pdf Shows the complete pdf
BG group 2014 https://www.shell.com/investors/financial-reporting/pre-combination-bg-group-publications/_jcr_content/par/textimage.stream/1455269757014/cfa2bef64c5007c2b28848b8cb39e736b1daa45875781366f9378dc29b74ec6d/bg-group-2014-annual-report.pdf Shows the complete pdf

The table I distilled from those sources is shown below.

Table with Annual Report values Shell BG

The 2016-line provides consolidated data for the combination, but it is interesting to just sum the values for previous years. Of course the acquisition had to be paid for and money went out to the shareholders. As a result 2016 is not a simple addition. Then this was also the period in which the oil-price collapsed, so a very complex situation. Looking at the graph without any knowledge won’t help, but understanding the market the graph will be interesting.

It will be the next blog where the derived 3D-graph can be obtained. For now it’s only the raw set of input-values. Until then: please try and use the free demo-generator to generate a “building” for one company in one year (or a series of graphs, as the demo only accepts on company/year combination, but the number of graphs to be created is unlimited. The demo-generator is free and apart from the volume restriction, it’s fully functional! For more information visit our website: https://anrep3d.com or read some of the other posts at this blog-site.

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Mergers and Acquisitions

It’s been a while, I know. During the Christmas holidays it seemed not very useful to publish new posts, because all potential readers would be too busy. Then, at the beginning of 2018 I was working on other parts of the AnRep3D business, mainly the preparation of a new set of videos. Because the old recording software didn’t work well on the new laptop, I had to investigate the alternatives. While doing this, I was also thinking about interesting examples of the usage of the AnRep3D generator. Then I realized Mergers & Acquisitions are a different area we didn’t discuss yet.

When two companies are going together in one way or another, it could be interesting to present their “buildings” together in an AnRep3D graph. During the previous year (2017) we witnessed a lot of Acquisitions (and also attempts not being successful). One of them was all over te news: Verizon taking over Yahoo. So I thought it would be interesting compare both companies in a single graph.

I went back to the basic “RPEA” sequence, meaning Revenue, Profit, Equity and (Total) Assets. It’s not a problem to show different values, like EBITDA and Liabilities, but this is the classic set for now. The values will be found easily in the annual reports for 2016 (look in the range of pages 40 – 43, where both present their Profit & Loss statement and the Balance Sheet).

http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_YHOO_2016.pdf

http://www.verizon.com/about/sites/default/files/annual_reports/2016/downloads/Verizon-AnnualReport2016.pdf

The AnRep3D input file is quite simple for this choice (all USD):

2, 1, 5, 100,3

Verizon,2016,125.980, 13.608, 24.032, 244.180

Yahoo,  2015,  5.167, -0.214,  31.049, 48.083

The first line holds all the parameters, like number of companies, number of years, scaling factor, extra distance and label-size. The next two lines hold the RPEA values for Verizon and Yahoo. Fed to the generator, a .htm-file is obtained, to be read in a browser. The buildings look a little bit remote, but by clicking the right mouse-button and moving the mouse they will come to the front. Below are two screenshots of the graph. By clicking one of them, the real 3D-graph will be shown in a new tab in your browser.

Top view Verizon Yahoo AnRep3DFront view Verizon Yahoo AnRep3D

 

 

 

 

 

 

 

 

Double-click the screenshot to see the live 3D-graph in your browser. For manipulation: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

Looking at the graph, it’s immediately clear that the revenue of Verizon is about ten times as high as Yahoo’s and while Yahoo shows a loss, Verizon shows a nice profit. However, although Verizon’s total assets are about five times Yahoo’s, the equity of Yahoo is larger than Verizon’s. So in the end it doesn’t seem like a bad acquisition, because a company with a low revenue, losing money and facing some other challenges as well, won’t be too expensive. The equity will be absorbed and probably improve the gearing.

The funny part is that Yahoo is known as an Internet company, but its balance sheet shows more of a private equity firm. 80% of the total assets is “Alibaba Group Equity Securities” and then another 14% is about “Marketable securities”.  Those values could be visualised in AnRep3D, but it’s a rare situation and I preferred to stick to the RPEA series this time. Revenue, Profit, Equity, Assets.

Don’t forget to try yourself! Download the free, fully functional demo – (https://anrep3d.com/free-demo) only limited to one company and one year a time. So if you want to compare Verizon and Yahoo using the demo, two input-files should be created to obtain both graphs.

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Let’s step back to see where we are

For several months I’ve been presenting examples of all kinds of 3D-graphs, generated with the AnRep3D tool. AnRep3D is the name of both our new company and its first product. Actually an abbreviation of Annual Reports shown in 3D-graphs.

Why should we present data from annual reports in a graph? Well, looking at one single annual report is easy. There is assets, liabilities and equity in the balance sheet and from this e.g. the gearing will be clear. And then we have to look at revenue, profit (or loss). It could be the net margin, the gross margin, the EBIT, EBITDA or something else, but we want to know the return on assets or the return on equity. For most investors the “new economy”, looking at burn-rates and being happy with heavy losses is over. Unless they go short on the shares of a company of course. And sometimes, there is the promise of a bright future, of course.

The problem is to fit all the numbers in one simple overview. A series of numbers or a couple of bars in a graph could do, but what if we want to track the company over a longer period? Or worse: if we want to compare two or three companies over a series of years?

That’s where we thought the third dimension would help us. Put the different values in different dimensions and present them as a kind of box. One for every company and every year. So for five companies over three years, we would get fifteen cubes – or “buildings” as we call them because they have a coloured roof, presenting profit (green) or loss (red). Below an example of such a 3D-graph with five companies in two years.

Eon shrankDouble-click the screenshot to see the live 3D-graph in your browser. For manipulation: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

To be able to present such a powerful overview, I had to find a solution and at first I used the language well-know in the world of VR (Virtual Reality): VRML. It is powerful indeed, but to view the graphs, people need to install a browser-plugin or viewer – and they just don’t. I moved on and decided WebGL (in HTML5) would be the best option. We had to drop the stereoscopic view for now, but now everybody can watch the 3D-graphs in a browser (although WebGL and Java have to be enabled in the browser, that’s true).

After this I started all over again and created the new generator. To let people experience the power of AnRep3D without paying anything, the free demo was developed. It’s fully functional (including the complete manual), but it only presents one building: one company in one year. That’s enough to understand the principle of our 3D-graphs and play with them.

If you are interested in AnRep3D, what should you do? Have a look at previous posts in this blog. Some present 3D-graphs create by the free demo. Others present 3D-graphs created with the fully functional AnRep3D-generator. Most of the screenshots are clickable, and will show the real 3D-graph after double clicking, like the example above.

The next step would be to download the free demo-generator and work with it yourself.

The third step is the one we like the most: contact info@anrep3d.com and get your own licence for the fully functional generator. For now it’s only EUR 400 without VAT (if applicable at all), without any additional charges! Of course this is only a limited offer, but it will be valid during 2018Q1. Good luck! I hope you will understand the power of AnRep3D.

By the way: of course the 3D-graphs can be used for other purposes. In a couple of posts I visualised energy-consumption, using the same graphs (part I, part II, part III and part IV). If you have a very good idea, please tell us about it before the end of March 2018 via info@anrep3d.com The most creative idea will be rewarded with a free AnRep3D-licence and we will mention them in this blog.

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Same companies, different 3D-graphs: GSK and AstraZeneca revisited.

Last time a mix of companies was presented, taken from another blog, offering a selection that inspired me. In the 3D-graph, the giant BP made the two pharmaceuticals look like dwarfs. So I decided to have another look.

This time however, I won’t stick to the usual RPEA sequence (Revenue, Profit, Equity, Assets), which is the standard for AnRep3D. Although we had to pick some standards for the manual, all kinds of values are allowed (remember I visualised the energy-usage of countries in AnRep3D graphs!).

For the first value I used the raw sales/turnover and instead of the net profit after tax, I took the gross margin (sales minus cost of sales).  (Total) Assets were replaced by (Total) Liabilities and Equity remains the same. Liabilities will be presented as a positive amount.

To obtain the numbers I went back to the annual reports 2016 and saw they presented 2014, 2015 and 2016. Only for GSK’s 2014 balance I had to look at their 2014 Annual Report as well. To illustrate how values look in the Anual Report, I present a small screenshot of the Glaxo Smith Kline (GSK) Annual Report (some empty space removed between text and numbers).

Piece of Annual Report 2016 GSK

Because the values are in GBP (GSK) and USD (AstraZeneca), I converted them to EUR first. All GBP or all USD would have been fine, but as our company is in Europe I refer EUR. For the Profit & Loss I took a weighted average of the exchange-rates for every year and for the balance I took the exchange-rate at the end of the year. The used exchange-rates for the calculations were derived from http://www.xe.com/currencycharts/?from=GBP&to=EUR&view=2Y# again, like last time. The resulting table is shown below.

Exchange-rates used

This time I didn’t export my Excel to a .csv, but copied the values into Notepad directly and rounded the numbers (still millions of EUR, but not relevant in comparison). Two companies and three years should be mentioned in the parameter-line, then a scaling of 1000, 20% extra spacing and font-size 4. The input-file is shown below (as a screenshot – mail me at info@anrep3d.com anrep3d@gmail.com for the real values).

GSK-AstraZeneca input

In the end the result is a 3D-graph, of course. To be honest I messed up a couple of times at first. I got this very strange graph and discovered I had left the minus-signs in for the Liabilities (only profit can be negative, as it will be subtracted from the revenue to create the graph). After removing the minus-signs, the graph looked normal but wasn’t completely right as I had mentioned 3 companies and 2 years in the parameter-line. The third attempt was not really wrong, but I had switched equity and liabilities and as a result the graph cannot be viewed easily as the buildings will be rather broad. It’s better to have the smaller value (equity) to determine the width. Finally a nice graph came up and shows the (financial) differences between the two pharmaceuticals clearly. By the way: the errors were not really annoying as a graph is generated within seconds and adjusting the input-file is easy. About a minute after the first attempt the right graph was available! Below a screenshot is presented. Double-click to view the real 3D-graph in your browser.

GSK AstraZeneca 2014 2015 2016

Remember: clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

From this angle the ratios of revenue (building heigth) to equity (width) and gross margin (green top) to equity are clearly visible. For AstraZeneca the gross margin is a higher percentage of the total sales (height of building) and it became better through the years (this time 2016 is to the rear). Compared to the equity however, GSK has a higher ratio for both sales and gross margin.

When we tilt the graph, we can look at the bottoms. This time they show the real gearing:  the liabilities (building dGSK AstraZeneca 2014 2015 2016 bottomepth) to equity (width) ratio. In 2016 the gearing was higher for both companies, although it was always higher for GSK. Different financial strategies, it seems. It’s up to you to draw conclusions from the graphs. We only provide a tool to visualise financial properties for different companies over the years. If you like the tool, please have a look at https://anrep3d.com and download the free demo (no registration needed!). Or contact us directly at info@anrep3d.com or anrep3d@gmail.com for information or a full license.

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Dangerous stocks? How do these companies look in an AnRep3D-graph?

For a couple of weeks we have been working with the free demo-generator, to show that it offers real added value, although less than the full version of course. Now let’s go back to the real generator, to show it’s power again. In an earlier post I provided a link to a site with a warning about dangerous stocks.
https://investorplace.com/2016/12/10-dangerous-high-yield-dividend-stocks-to-avoid/view-all/#.WdoLijtpFdg They have their own reasons to avoid those companies, but we are interested in their generic health, to be judged by their profit (absolute and relative) and their gearing. From the list I picked a couple we know rather well in Europe: BP, GSK, AstraZeneca, Ericsson and Telefónica Then I took their 2016 annual reports and extracted the relevant values (for AnRep3D, that is) for both 2016 and 2015. The links used to get the Annual Reports are shown below:
– BP  https://www.bp.com/content/dam/bp/en/corporate/pdf/investors/bp-annual-report-and-form-20f-2016.pdf (remember a significant event with a huge impact: the Gulf of Mexico oil spill) Values are in USD, so I converted them using an average value of  USD 1 -> EUR 0.91 with the help of   http://www.xe.com/currencycharts/?from=USD&to=EUR&view=2Y#– GSK  https://www.gsk.com/media/3609/annual-report-2016.pdf These values are in GBP and the average exhange rate used was GBP 1 -> EUR 1.21, based on: http://www.xe.com/currencycharts/?from=GBP&to=EUR&view=2Y#– AstraZeneca https://www.astrazeneca.com/investor-relations/annual-reports/annual-report-2016.html Again USD 1 -> EUR 0.91 using the same link as with BP.
– Ericsson  https://www.ericsson.com/assets/local/investors/documents/2016/ericsson-annual-report-2016-en.pdf This company is Swedish and reports in Swedish crowns. SEK 1-> EUR 0.105 (average): http://www.xe.com/currencycharts/?from=SEK&to=EUR&view=2Y#–  Telefónica  https://www.telefonica.com/documents/153952/13347920/Consolidated_Annual_Accounts_2016.pdf/dc4fed73-51c2-433a-95d0-ef16910abbe9  is a Spanish company and reports in EUR, so no conversion.

Taking revenue (sales), net profit after tax, equity and total assets in EUR, I got an input-file as shown below. Remember, the first line is the parameter-line with the number of companies, years for every company, scaling factor (divide by 2000), extra space 20% and font-size 4.Input BP GSK AstraZeneca Ericsson Telefónica

All the other lines hold the (converted to EUR) values from the annual reports. Generating the spatial (3D) graph, what do we see? Below is a screenshot – click it to view the real html-graph in your browser. This graph was generated in a couple of seconds from the input-file shown above!

3D graph front viewFirst a warning: the volume is not showing the relative size of the companies. Every dimension is on its own, although the ratios do have a meaning for every company. Having said so, we still can see that the “pharma giants” look more like dwarfs in comparison to British Petroleum (BP). The energy-company shows a revenue which is at least five times higer. Yet BP’s profit – the green roof – is litterally very thin! Hardly any profit at all and the year before BP suffered a massive loss (red roof). The impact of the oil spill was important of course. Zooming in (click on the screenshot to open the real 3D graph in your bowser – WebGL and Java should be active), the smaller blocks can be inspected more closely.

Remember: clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.

Looking from below we can see the “gearing”, because it is the ratio of total assets (depth) minus equity (width) to the equity (again: width). Of course we could replace the “total assets” with the “total liabilities” in the input-file to see the gearing even more directly. That’s a choice AnRep3D allows. GSK has a higher gearing than AstraZeneca and in 2016 (front) it’s even higher than in 2015 (rear). Ericsson, on the other hand, has a very low gearing as its bottom is, although not completely, close to a square.

3D graph bottom and oblique view

From the side, the Asset Turnover can be observed, as it is the ratio of height and depth of the “building”. Finally, the green area in the front-view (to the top), shows the return on equity. It’s quite impressive for AstraZeneca! Other observations can be made if the input is chosen differently as well. We already mentioned total liabilities instead of total assets and instead of profit, we could also take gross margin or EDITDA. It depends on what will be the most informative set for a special occasion.

This time we used the full version of the AnRep3D generator again. It’s neither expensive, nor free. If you want to try and work with the software, just go to https://anrep3d.com and download the free demo package (menu: demo). If you are already convinced, just contact us using info@anrep3d.com to obtain a full license.

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Using the free AnRep3D demo-generator: more steel!

Let’s get to the point very quickly this week. Last week I put a step aside and presented Kobe Steel. Two weeks ago I provided some links to sites talking about specific companies. One of those links was https://investorplace.com/2016/12/the-7-worst-stocks-to-buy-for-2017/  I realised two of the seven companies discussed there were steel-companies, just like Kobe-steel. So a good chance to move to the promised set and create graphs for two companies, allowing us to compare three as they are all about steel. The Annual Reports (2016) I found at:

http://ir.aksteel.com/getattachment/3f28dd55-5556-4125-b2fa-600782ff34c6/2016-Annual-Report and https://www.ussteel.com/sites/default/files/annual_reports/USS%20Form%2010-K%20-%202016.pdf

For US-Steel  the values I took I used their own overview at page 59: Revenue: $ 10261 MM Loss $ – 440 MM Equity $ 2274 MM Assets  $ 9160 MM

For AK-Steel  I had to sum numbers as their presentation is a little bit different from US-Steel, so I added their non-operational income to the operational part (please check because – as stated before – I’m merely demonstrating the power of AnRep3D, not analysing companies. I am certainly not providing advice, except that in my opinion it would be good to purchase an AnRep3D full license): Revenue  $ 6010 MM Profit  $  115.9 MM Equity $  90.7  Assets  $ 4036 MM

Putting the numbers into two different input-files (remember, the free demo-generator will only process one company a time) and feeding them to the generator we get two 3D graphs. The first graph for AK-Steel looked tiny because I took the same scaling as used for Kobe and US-Steel. With the second attempt the scaling (“shrink factor” reducing the large amounts) was set to 250 instead of 500 keeping the numbers twice as high this time. The two input-files looked like this:

Input-files AK and US Steel

The two graphs with Kobe-Steel next to them provide a nice series!AK-SteelUS-Steel   Kobe Steel

Clicking on the image will start the real 3D graph in your default browser (both Javascript and WebGL should be enabled – if you donn’t trust the connection, download the .htm file first, using right-click. Have a look at the file and start it locally by double clicking it in Windows Explorer). The 3D-graph can be manipulated in real-time: clicking left and moving the mouse will tilt the graph in different directions. Double clicking in the graph translates it and moves the centre at the same time. Just try it. If you don’t know how to get the normal position back, just refresh the browser window.

It is clear that US-Steel (USA) and Kobe-Steel (Japan) are rather similar, although US-steel shows a larger (relative) loss and low equity compared to the total assets (so the gearing is high) AK_Steel (USA) however,  looks very different in two ways: its equity is very low compared to the total assets (high gearing – this is why the graph looks like a sheet of steel) and it shows a profit instead of a loss. No conclusions, just visualisation!

I hope this is another valid demonstration of the power of AnRep3D. And this is only about the free demo-generator, not the full version coming with a license. This version is able to compare a series of companies over a range of years. Of coure a picture will say more than a thousand words, so I provide you wit a screenshot (no 3D graph available this time) of such a complex graph. Visit https://AnRep3D.com for more information.

Full license 3D graph

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