Plotting ratios in one figure
In this exercise, you'll plot and compute the gross margin and asset turnover ratio of Microsoft over time. But unlike the last exercise, here you will plot it in one figure. This will help visually analyze the trend of these ratios since the ratios are plotted in the same figure.
You will use the pandas .melt()
function in this exercise. In the video, the value_vars
argument was specified in the function. value_vars
refer to the columns we want to unpivot. However if value_vars
is not specified, then all the columns which are not id_vars
will be taken as value_vars
.
Asset turnover and gross margin ratios have been computed for you in the msft
DataFrame, provided in the "asset_turnover"
and "gross_margin"
columns, respectively.
This exercise is part of the course
Analyzing Financial Statements in Python
Exercise instructions
- Convert the
msft
DataFrame from wide to long format. - Plot the asset turnover ratio and gross margin ratio in the same plot with
Year
on the x-axis and addhue
over the dimension ofRatio
.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Convert the DataFrame from wide to long
msft_melt = msft.melt(id_vars=____, value_vars=____, var_name="Ratio")
# Plot the data
plot = sns.lineplot(data=msft_melt, x=____, y=___, hue=____)
plt.show()
plot.xaxis.set_major_locator(MaxNLocator(integer=True))
plt.show()