Merging financial statements
You just learned to read JSON data into Python and compute two ratios from the cash flow statement. Computing the cash flow to net income ratio and operating cash flow ratio not only needs information from a company's cash flow statement, but also the income statement and balance sheet.
In this exercise, you'll practice loading JSON data into Python using pandas and merging it with the income statement and balance sheet data.
pandas has already been loaded for you as pd. The datasets with balance sheet and income statement information are called balance_sheet and income_statement, respectively. These have also been loaded for you.
This exercise is part of the course
Analyzing Financial Statements in Python
Exercise instructions
- Begin by reading
cash_flow_tech.jsonas a pandas DataFrame. - Merge the income statement with the balance sheet data, calling the result
merged_income_statement_balance_sheet; use"Year"and"company"as columns to join on. - Merge cash flow data with
merged_income_statement_balance_sheet.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Read cash flow data
cash_flow = ____
# Merge income statement data with balance sheet data
____ = pd.____(income_statement, ____, on=____)
# Now merge it with cash flow data
merged_all = pd.____(cash_flow, ____, on=____)