Re: Scatter Plot Data
Hi Kurt, No problem; we typically reply within 1-2 business days, so you can check back often! You can find a tutorial on making these types of bubble charts on this webpage: https://sit... Hi Kurt,

No problem; we typically reply within 1-2 business days, so you can check back often!

You can find a tutorial on making these types of bubble charts on this webpage: https://sites.google.com/site/e90e50fx/ ... with-excel (Note: we are not affiliated with the author.)

As mentioned earlier, with a dense, multidimensional data set such as the one you described, it's highly advisable to first determine which information you are looking to convey (contrast data vs. information!) before selecting a chart type. Even with the chart I posted, it is arguably difficult to "read" in the sense that it is not immediately clear what message is intended. Are we looking for the asset classes that have the longest maturities worldwide? Are we trying to highlight international differences such as commodites having very long maturities in some countries but very short maturities in others? Would it be appropriate to instead have an interactive data table, in which clicking on "FX" would rearrange the countries so that the FX maturities would then be sorted in descending order?

These are the types of questions that should offer some direction. Please let us know if you'd like any further assistance. Have a great weekend! Read More

Re: Share Repurchase
If you use current EPS, you will get a circular reference because EPS hasn't yet been finalized until interest expense is finalized, which of course, introduces the entire circular reference logic. By using trailing EPS (last period), you avoid this problem. So in essence, just use trailing PE rati... If you use current EPS, you will get a circular reference because EPS hasn't yet been finalized until interest expense is finalized, which of course, introduces the entire circular reference logic. By using trailing EPS (last period), you avoid this problem.

So in essence, just use trailing PE ratio (as long as somewhat steady). Simply graph out Current Stock Price divided by LTM EPS - do this on a daily basis over 2-3 years and you'll easily spot the "right" PE ratio. Read More

Re: Other Income and Expense
It depends primarily on if it is considered part of recurring operations. In WMT's case, that Other Income is primarily Membership Fees. Interestingly enough, in subsequent years, WMT no longer calls it Other Income and renamed it to Membership and Other. And Net Sales is now Merchandise Sales. In ... It depends primarily on if it is considered part of recurring operations. In WMT's case, that Other Income is primarily Membership Fees. Interestingly enough, in subsequent years, WMT no longer calls it Other Income and renamed it to Membership and Other. And Net Sales is now Merchandise Sales.

In theory, Other Income and Expense can appear on any part of the Income Statement, but is generally below EBIT (i.e. with interest) if it is not part of core operations. Read More

CAPM alpha risk
Generally speaking, don't get caught up in the hype about the "quest for alpha". CAPM (which we recognize is a THEORY still) estimates the required return from an equity (or security). A stock's deviation from CAPM is referred to as alpha (excess returns) and as such, should not be incorporated into... Generally speaking, don't get caught up in the hype about the "quest for alpha". CAPM (which we recognize is a THEORY still) estimates the required return from an equity (or security). A stock's deviation from CAPM is referred to as alpha (excess returns) and as such, should not be incorporated into your CAPM analysis for WACC and DCF and other discounting purposes. If you can accurately predict alpha, quit your day job and join a hedge fund (one that isn't imploded that is). Read More

Re: Inventory Days semi-annual calculation
Good question! Since the COGS you are using would be for 1H 2011, you must match the same time periods. Thus, for average inventory, you would use YE 2010 and June 2011. June 2010 would be mis-match of numerators and denominators. That logic would apply for calculating period-over-period growth rat... Good question!

Since the COGS you are using would be for 1H 2011, you must match the same time periods.
Thus, for average inventory, you would use YE 2010 and June 2011.
June 2010 would be mis-match of numerators and denominators.
That logic would apply for calculating period-over-period growth rates (on Income Statement). Read More