Aan de slagGa gratis aan de slag

Compute relative difference by industry

Computing the relative difference between a company's ratio and its industry average is an excellent way to see if a company is at par with its peers. In this exercise, you'll practice computing the relative difference of the equity multiplier ratio of various FMCG companies from their industry average.

A pandas DataFrame balance_sheet has been loaded for you. pandas has been loaded for you under the alias pd. You can call balance_sheet.columns in the console to assess which columns you can use for the exercise.

Deze oefening maakt deel uit van de cursus

Analyzing Financial Statements in Python

Cursus bekijken

Oefeninstructies

  • Subset the entries in balance_sheet to get only fmcg companies in the column "comp_type" of balance_sheet.
  • Add a column in fcmg where you compute the equity multiplier ratio.
  • Add a column to fmcg where you compute the average yearly equity multiplier ratio.
  • Add a column to fmcg where you compute the relative difference of the company's equity multiplier ratio with its industry average.

Praktische interactieve oefening

Probeer deze oefening eens door deze voorbeeldcode in te vullen.

# Subset the fmcg companies
fmcg = balance_sheet.____[____]

# Compute equity multiplier ratio
fmcg["equity_multiplier_ratio"] = ____

# Compute average equity multiplier ratio by year
fmcg["average_equity_multiplier_ratio"] = fmcg.____(____)[____].____(____)

# Compute the relative difference
fmcg["relative_difference"] = ____

print(fmcg[["Year", "company", "relative_difference"]])
Code bewerken en uitvoeren