Computing ratios with user-defined function
In this exercise, you'll use the function from the last exercise to compute financial ratios. Recall that the function is:
def compute_ratio(df, numerator, denominator, ratio_name,
addition_in_numerator = True,
addition_in_denominator = True):
numerator_of_ratio = np.where(addition_in_numerator,
df[numerator].sum(axis=1),
df[numerator[0]] - df[numerator[1:]].sum(
axis=1))
denominator_of_ratio = np.where(addition_in_denominator,
df[denominator].sum(axis=1),
df[denominator[0]] - df[denominator[1:]].sum(axis=1))
df[ratio_name] = numerator_of_ratio/denominator_of_ratio
return df
The pandas
DataFrame merged_dat
is loaded for you, which you will use to compute financial ratios using the function compute_ratio
.
This exercise is part of the course
Analyzing Financial Statements in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Print the columns of merged_dat
print(merged_dat____)