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.
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!
First 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.
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 email@example.com to obtain a full license.