Definition

Financial Features: A set of indexes and ratios computed using financial statement data.

Specification

The Financial Features, computed from the Financial Statement data, are given in Table 5.

Table 5 – Financial Features

Feature Name Feature type Feature value
1 Revenues Revenue/Profit Absolute value
2 EBITDA Margin Revenue/Profit Percentage (%)
3 EBITDA Revenue/Profit Absolute value
4 Quick Ratio Revenue/Profit Absolute value
5 Current Ratio Revenue/Profit Percentage (%)
6 Net Working Capital Revenue/Profit Absolute value
7 Net Financial Position Cost/Debt Absolute value
8 Net Short-Term Assets Cost/Debt Absolute value
9 Shareholder Funds-Fixed Assets Cost/Debt Absolute value
10 Long-Term Liability Ratio Cost/Debt Percentage (%)
11 Coverage Of Fixed Assets Cost/Debt Absolute value
12 Amortisation Rate Cost/Debt Percentage (%)
13 Debt On Sales Cost/Debt Absolute value
14 Interest Coverage Ratio Cost/Debt Percentage (%)
15 Average Stock Turnover Production Absolute value
16 Stock Coverage Days Production Absolute value
14 Return On Investments (ROI) Revenue/Profit Percentage (%)
15 Return On Asset (ROA) Revenue/Profit Percentage (%)
16 Return On Sales (ROS) Revenue/Profit Percentage (%)
17 Return On Equity (ROE) Revenue/Profit Percentage (%)
18 Cash Flow Production Absolute value
19 Interest On Sales Cost/Debt Percentage (%)
20 Type Of Financial Statement Financial statement type Enumeration

Feature n. 20: enumeration elements: Abbreviated, Micro, Detailed.

Table 6 specifies how the features of Table 5 (column 2) are normatively computed according to International Financial Reporting Standard (column 4) [6]. The definitions of column 3 are nor­mative.

Table 6 – Financial Features specifics

Feature Name Definition Formula Data type
1 Revenues The total amount of revenues Directly provided in the financial statement String of real numbers
2 EBITDA Margin A measure of a company’s profitability by comparing its gross revenues with its earnings EBITDA/Revenues Percentage
3 EBITDA A measure of a company’s profitability Operating margin + (Depreciation + Amortisation + Writedowns) String of real numbers
4 Quick Ratio The company’s ability to meets the short-term obligations with its only liquid assets (Current assets – inventory)/Current liabilities String of real numbers
5 Current Ratio The company’s ability to meets the short-term obligations with its current assets (e.g., cash, inventories, etc.) (Current assets)/Current liabilities String of real numbers
6 Net Working Capital A measure of a company’s liquidity and its ability to meet short-term obligations, as well as fund operations of the business Current assets – Current liabilities String of real numbers
7 Net Financial Position A financial ratio that expresses the overall financial position of the company by including all liabilities of financial nature Due to banks + Due to lenders – Total liquid funds String of real numbers
8 Net Short-Term Assets A margin that expresses the company’s ability to meet current short-term liabilities through the use of cash and cash equivalents and short-term receivables Trade and other accounts + Total liquids funds – Short term liabilities String of real numbers
9 Shareholder Funds-Fixed Assets The company’s financial solidity, thus its ability to finance itself from shareholders’ equity Shareholders’ funds – Fixed assets String of real numbers
10 Long-Term Liability Ratio The incidence of long-term debts on the total liabilities Long- and medium-term liabilities /Total assets String of real numbers
11 Coverage Of Fixed Assets An asset self-coverage ratio, which expresses the ratio of equity to tangible assets Tangible fixed assets/Shareholders funds String of real numbers
12 Amortisation Rate The portion of capital invested in tangible fixed assets that has already been recovered Amortisation funds/ Tangible assets String of real numbers
13 Debt On Sales The company’s ability to cover its debts with the revenues from sales Total debts /Revenues Percentage
14 Interest Coverage Ratio The degree to which the operating profit is able to cover the cost of financial interests. Operating margin + Depreciation, Amortisation and Writedowns/ Interests String of real numbers
15 Average Stock Turnover The measure that expresses how often the warehouse is renewed (Stocks-Advances)/Turnover *365 String of real numbers
16 Stock Coverage Days The average length of time during which the stocks are in warehouses Stocks/ Cost goods sold *365 String of real numbers
17 Return On Investments (ROI) The profitability of an investment, measuring the amount of return of that particular investment, relative to its cost Operating margin / (Shareholder’s funds + Bonds + Due to banks + Due to shareholders for loans + Due to other lenders) Percentage
18 Return On Asset (ROA) The profitability of a company in relation to its total assets Operating margin / Total assets Percentage
19 Return On Sales (ROS) Efficiency of a company in turning sales into profits Operating margin / Total revenues Percentage
20 Return On Equity (ROE) The company’s annual result divided by the value of its total shareholders’ equity Result (profit or loss)/Shareholder’s funds Percentage
21 Cash Flow The money coming in and going out of the company during a specific accounting period Result (profit or loss) + (Depreciation + Amortisation + Writedowns) String of real numbers
22 Interest On Sales A measure of the incidence of interest expenses on turnover created by the company and absorbed at the service of the third-party capital employed Interest/Revenues Percentage
23 Type Of Financial Statement The type of financial statement that the company prepares according to accounting regulations Given by the reference jurisdiction Enumeration

Feature n. 20: enumeration elements: Abbreviated, Micro, Detailed.