Stock Analysis – How to provide Quarterly results into Excel file, combined or separated by quarter?

Q & AStock Analysis – How to provide Quarterly results into Excel file, combined or separated by quarter?
Cherk Ming asked 4 days ago

Hi KC & Peter,
I am in midway of doing stock analysis, got a question to clarify.
A listed company’s latest financial results is up to Quarter 2 of current fiscal year, should I combine both Quarter 1 & 2 financial results as 1 consolidated numbers in my stock analysis Excel file?
Also, can you advice how to share my stock analysis Excel file to you for checking & feedback?
Thanks. 

1 Answers
KCLau Staff answered 4 days ago

Hi Cherk Ming, glad to know that you are making progress.
1. For the analysis, you can use the trailing-12 months. Meaning adding the 2 Quarters of this year, plus the last two quarters of last year. Use this total trailing twelve month (TTM) financial results for the latest analysis.

2. There is a checklist on how to submit your analysis:

How to Submit Stock Analysis

KCLau Staff replied 2 days ago

You should always do valuation based on the latest info you can find. Since the TTM is the latest you can get, please use those in ROE, ROCE, dividend payout etc.

Income statement is based on TTM.
The Financial position (Balance Sheet) is based on the point of time. The position change every quarter. Don’t you think it is best to use the latest info you can find?

You are right – “As-at” === the position at that date.
For example, cash position – it changes every day. So logically, just use the latest number you can find, which is recorded in the latest quarterly result.

Cherk Ming replied 2 days ago

Hi KC,

1 more question. Should the Trailing-12 months numbers be included in calculation of:

1) Average ROE, Quartile 1 ROE.
2) ROCE, Quartile 1 ROCE.
3) Dividend Payout Ratio

Thanks.

Cherk Ming replied 2 days ago

Hi KC,

Should the trailing-12 months applied to both Income Statement & Financial Position Statement?

In my opinion, it should only applicable to Income Statement, kindly feedback & correct me if I am wrong as Financial Position statement numbers are just “As-At” numbers.

Thanks.