Corporate Investment Factors

Capital Expense to Sales Ratio

CAPEX to Sales Ratio measures the level of investments a company is making into its future. CAPEX value will be positive for expenditures.
CAPEX to Sales Ratio = (CAPEX in quarter t / Net Sales in quarter t)
CAPEX to Sales Ratio TTM = (CAPEX ttm / Net Sales TTM)
Net sales MUST be POSITIVE

Capital Expense to Total Assets Ratio

CAPEX to Assets Ratio compares the level of investments a company is making with its assets. CAPEX value will be positive for expenditures.
CAPEX to Assets Ratio = (CAPEX in quarter t / Assets in quarter t)
CAPEX to Assets Ratio TTM= (CAPEX TTM / Assets TTM)
Assets MUST be POSITIVE

Investment Growth Ratio

Investment growth is the growth rate in capital expenditure. Firm capital investment, determined by Tobin’s Q, which is proxied by firms’ market-to-book ratios, relates to future equity returns in the same way as the market-to-book ratio.  CAPEX value will be positive for expenditures.
Investment Yearly Growth Ratio (ig_yoy) = (CAPEX in quarter t / CAPEX in quarter t – 4)
Investment Quarterly Growth Ratio (ig_qoq) = (CAPEX in quarter t / CAPEX in quarter t – 1)

Assets Growth Ratio

Assets growth ratio measures the degree to company’s asset increases or decreases in value over time.
Assets Yearly Growth Ratio (ia_yoy) = (Assets in quarter t / Assets in quarter t – 4)
Assets Quarterly Growth Ratio (ia_qoq) = (Assets in quarter t / Assets in quarter t – 1)

Inventory Growth Ratio

Inventory investment is highly correlated with the business cycle. Inventory growth ratio, measures as the increase or decrease in firm’s inventory over a year, represents a firm’s productivity and it’s business cycle.
Inventory Yearly Growth Ratio (ivg_yoy) = (Inventory in quarter t / Inventory in quarter t – 4)
Inventory Quarterly Growth Ratio (ivg_qoq) = (Inventory in quarter t / Inventory in quarter t – 1)

Quick Ratio

Quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.
quick_ratio = (current assets – inventory)/current liabilities *100
Current liabilities MUST be POSITIVE

Current Ratio

Current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year with its current assets.
current_ratio = current assets / current liabilities *100
Current liabilities MUST be POSITIVE

Inventories Changes to Assets Ratio

Inventory changes is the change in inventory of quarter t scaled by the average of total assets of quarter t and t-1
Inventory changes to Assets Ratio = (inventory in quarter t – inventory in quarter t-1)/((assets in quarter t + assets in quarter t-1)/2)*100;
assets MUST be POSITIVE.

Inventories to Current Assets Ratio

Inventories to Current Assets Ratio measures the portion of current assets tied up in inventory.
Inventories to Current Assets Ratio = inventory / Current assets * 100;
Inventories to Current Assets Ratio TTM = inventory 12 month average / Current assets *100
Current assets MUST be POSITIVE.

Changes in PPE and Inventories to Assets Ratio

Changes in PPE and Inventories to Assets Ratio is defined as the annual change in gross property, plant, and equipment plus the annual change in inventory scaled by one-year-lagged total assets.
Changes in PPE and Inventories to Assets Ratio = ((inventory in quarter t – inventory in quarter t-4) + (PP&E in quarter t – PP&E in quarter t-4)) / assets in quarter t-4 * 100
Assets MUST be POSITIVE.

Net Operating Assets to Assets Ratio

Net Operating Assets to Assets Ratio is net operating assets scalded by one-year-lagged total assets. Net operating assets measures as operating assets minus operating liabilities.
Net Operating Assets to Assets Ratio = (operating assets – operating liabilities)/assets*100
Net Operating Assets to Assets Ratio TTM = (operating assets TTM – operating liabilities TTM )/assets*100
Assets MUST be POSITIVE.

Changes in Net Operating Assets to Assets Ratio

Changes in net operating assets, dNoa, is the quarterly change in net operating assets scaled by lagged total assets.
Changes in Net Operating Assets to Assets Ratio = (noa in quarter t – noa in quarter t -1)/assets in quarter t-1 *100
Assets MUST be POSITIVE.

Changes in long-term Net Operating Assets to Assets Ratio

Changes in long-term net operating assets measures as the change in net PP&E plus the change in intangibles plus the change in other long-term assets minus the change in other long-term liabilities and plus depreciation and amortization expense. d_lt_noa_assets is the change in long-term net operating assets scaled by the average of total assets from the current and prior quarter.
long-term net operating assets (lt_noa) = intangibles + long-term assets + long-term liabilities – long-term debt
change in long-term net operating assets (d_lt_noa) = lt_noa in quarter t – lt_noa in quarter t-1 + depreciation expense
Changes in long-term Net Operating Assets to Assets Ratio (d_lt_noa_assets) = d_lt_noa / ((assets in quarter t + assets in quarter t-1)/2)*100
Changes in long-term Net Operating Assets to Assets Ratio TTM = d_lt_noa TTM / ((assets in quarter t + assets in quarter t-1)/2)*100
Assets MUST be POSITIVE.

Operating Accruals to Assets Ratio

Operating Accruals measures as the statement of cash flows as net income (item NI) minus net cash flow from operations. Operating accruals to assets ratio (Oa_assets) calculated by Operating Accruals scaled by total assets.
Operating Accruals to Assets Ratio (oa_assets) = (net income – operating net cash flow) / assets*100
Operating Accruals to Assets Ratio TTM (oa_assets_ttm) = (net income – operating activities net cash flow) 12 month average /assets*100
Assets MUST be POSITIVE.

Total Accruals to Assets Ratio

We use the cash flow approach to measure Total Accruals as net income minus total operating, investing, and financing cash flows plus sales of stocks minus stock repurchases and dividends. Total accruals to assets ratio (Ta_assets) is calculated as Total Accruals scaled by total assets.
total accruals = net income – operating net cash flow – investing net cash flow – financing net cash flow + stock repurchase + cash dividends
Total Accruals to Assets Ratio (ta_assets) = total accruals / assets *100
Total Accruals to Assets Ratio TTM (ta_assets_ttm) = total accruals 12 month average / assets *100
Assets MUST be POSITIVE.

Percent Operating Accruals

Percent Operating Accruals scaled operating accruals by the absolute value of earnings as percent accruals.
Percent Operating Accruals (perc_oa) = (net income – operating net cash flow) / abs(net income) *100
Percent Operating Accruals TTM (perc_oa_ttm) = (net income – operating net cash flow) 12 month average / abs(net income 12 month average) *100

Percent Total Accruals

Percent Total Accruals calculated as total accruals scaled by the absolute value of net income.
Percent Total Accruals (perc_ta) = total accruals / abs(net income)*100
Percent Total Accruals TTM (perc_ta_ttm) = total accruals 12 month average / abs(net income 12 month average)*100