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Market Quotient Discusses the Data Sources That Plays a Big Role in Financial Modeling
According to Market Quotient, the effectiveness of financial analysis depends on the collection and use of the appropriate data sources.
By: Market Quotient
A financial model requires the utilization of a wide variety of data and equity research. The past results of a corporation are the most important factor in preparing a three-statement model, which serves as the foundation for all other financial models.
According to the team, Market Quotient discussion on financial modeling and analysis from business filings, industry publications, and professional analyst research reports are examples of materials that might help you increase the accuracy of your forecasting assumptions. Finally, you must choose which inputs are appropriate for your financial research. For an analyst to construct an accurate and up-to-date model, they must have knowledge of important data sources like 10K data.
They have provided 2 financial research sources in their discussion that can benefit market research significantly.
Regulatory Filings & Company Reports:
Governments pay particular attention to public corporations through SEC filing. For public corporations that are governed by government agencies, they are required reporting requirements.
A public firm is obligated to its shareholders by its very nature. The actions of public businesses are regulated by governments through mandated reporting obligations and standards. Public firms are required by law to disclose all material information about their operations and performance like in their 10K and 10Q reports.
Companies produce annual report to shareholders in which they reveal company information. Financial information, operational performance, and market information are all included in these reports for investment research. (https://www.marketquotient.com/
Databases of Financial Information:
Bloomberg, Capital IQ, and Thompson Reuters are just a few of the financial data databases available. These databases give users access to a wide range of financial data collection. Financial databases make it simple to evaluate past data and export it to Excel.
Financial statements received from these databases, on the other hand, are usually in a uniform format. As a result, if the firm employs a unique accounting system for its business operations, you won't be able to deduce it from the data you've gathered, which will have an impact on your study.
Financial databases, on the other hand, are excellent sources of many sorts of data that might be used in financial modeling. Key economic indicators, mergers, and acquisitions, comparable research, security analysis, including bonds, stocks, and derivatives, and analyst reports are just a few of the numerous techniques that may be employed in financial modeling. (https://www.marketquotient.com/