Tuesday, June 11, 2019
Not Much Fizz in LaCroix Right Now

Wednesday, May 29, 2019
An Example of Calcbench, Excel, and Insight

Monday, May 20, 2019
Research Paper: Capex Spending

Thursday, May 16, 2019
Psst: Got Any Weed?

Wednesday, May 15, 2019
Open Letter: SEC Proposed Rule for BDCs

Friday, May 10, 2019
General Motors and Workhorse

Monday, May 6, 2019
How to Find Earnings Release Data

Tuesday, April 23, 2019
Following Restructuring Costs Over Time

Monday, April 22, 2019
Capex Spending: More Than You Might Think

Saturday, April 13, 2019
When AWS Takes Over the World

Thursday, April 11, 2019
Data Trends in Focus: Restructuring Costs

Sunday, April 7, 2019
How One Customer Crushed It With Calcbench

Thursday, April 4, 2019
TJX Shows Complexity of Leasing Costs Reporting

Tuesday, April 2, 2019
CEO Pay Ratios: Some 2018 Thoughts

Wednesday, March 27, 2019
Corporate Spending: Where It Goes, 2017 vs. 2018

Monday, March 25, 2019
Health Insurers: A Bit Winded?

Friday, March 22, 2019
Our New Master Class Video

Thursday, March 21, 2019
Tech Data’s Goodwill Adjustment

Tuesday, March 19, 2019
There’s Taxes, and There’s Taxes

Saturday, March 16, 2019
Adventures in Tax Cuts and Net Income

Archive  |  Search:

As much as we like to pore over the details of one company at time around here, we know that sometimes Calcbench users need compare the financial metrics of a group of companies at a glance. We can do that too, and since everyone likes to scrutinize every detail of the banking sector, we’ll use 10 large U.S. banks as an example.

First you visit our Multi-Company page. That’s where you can build a peer group of companies to examine or select from some standard groups we already offer, such as the S&P 500 or the Dow Industrials. You start by hitting the ‘Choose Company’ button on the upper left corner of your screen, and that takes you to our peer group builder (Figure 1 below):

We’re going to build our own peer group, which is a breeze: go to the ‘Current Peer Group’ column on the right-hand side, and start entering company names or ticker symbols. If you squint at the image above, you can see the 10 banks we selected. For the record, they are:

  • Bank of America
  • Bank of New York
  • Capital One
  • Citigroup
  • Goldman Sachs
  • JP Morgan Chase
  • Morgan Stanley
  • PNC Financial
  • US Bancorp
  • Wells Fargo

Once you select your peer group, Calcbench automatically returns a list of those companies with some basic metrics (revenue, operating income) for the most recent full calendar year’s results. If you want results for a different period, you can change that default using the Select Calendar Year & Period button on the top left. (Circled below in red, Figure 2.) For our experiment, we set the period to first quarter of 2016.

The single metric by which banks live and die is return on equity—which Calcbench can capture and present immediately. To do that, go to the Explore Normalized Metrics button on the left side of the screen (circled above in blue), and then tab your way to Ratios, and the Profitability choices we offer you after that. The ROE metric is near the bottom. Select it, and you see the return on equity appear as another column of results along with all the other metrics.

In our example, you can see that ROE ranged from 11.77 percent (US Bancorp) to 4.13 percent (Bank of America). If you want to see the numbers behind any specific bank’s ROE, just click on that percentage and our ‘trace’ option appears. Click on that, and a small box rolls across the screen to show the underlying math.

But wait, you say—I don’t need a list of numbers, I need a handy chart to drop into a PowerPoint presentation for the boss! No worries, Calcbench has you covered there too.

Simply move your mouse over the ROE heading in the results. A menu appears with a series of choices to add data from prior periods or compare one column’s data against another—and to get a chart of year-over-year results. We chose that one, to see how the banks’ ROE for first-quarter 2016 compared to 2015. The result is Figure 3, below.

You can see that six of our 10 banks had a decline in ROE from the year prior period (2015 ROE is in gold, 2016 in blue). Each column also states the percentage change from one year to the next.

Once you learn those basics, you can go from idea percolating in your head to specific data, complete with PPT chart to impress the boss, in less than 90 seconds.

FREE Calcbench Premium
Two Week Trial

Research Financial & Accounting Data Like Never Before. More features and try our Excel add-in. Sign up now to try the Premium Suite.