Sunday, May 6, 2012

Investment Analysis: Gross Margin, Part 2


As per my last post, I decided to exclude variances that are within a certain threshold.  I decided on a "+-5%" band, so that only securities with % change in Gross Margin - % change in Sales less than -5% earned a negative one rating and securities with a greater than 5% difference earned a positive rating.

I did two "if" formulas in order to reflect this:
and then summed the two together to get the "Final Rating".

**It seems to me that it should be formulatically possible to just do it in one logic test, but alas, Google docs and excel both defeat me.  If YOU know how to do it, I'd appreciate the enlightenment. 

To access the spreadsheet, click here.

We have one more quality of earnings indicator, selling and administration expenses, and then we'll take a look at the full Q of E picture.  I will post the S&A analysis by the end of the week.

Thank you for reading!

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