Friday, April 3, 2020
A Q&A on Using Calcbench Data for Corporate Reporting

Wednesday, April 1, 2020
Coronavirus and Lines of Credit

Monday, March 30, 2020
Some Recent Coronavirus Disclosures

Thursday, March 26, 2020
GILTI Tax Data: Yeah, We Got That

Monday, March 23, 2020
Exec Comp: Another Interesting Trend

Thursday, March 19, 2020
Trends in Executive Comp, 2010-2018

Wednesday, March 18, 2020
Another Look at Strength of Balance Sheets

Wednesday, March 11, 2020
Studying Debt Levels

Wednesday, March 4, 2020
A Q&A on Using Calcbench Data for Academic Research

Monday, March 2, 2020
Calcbench Talkin’ Shop!

Thursday, February 27, 2020
A Broader Look at Coronavirus Risk

Thursday, February 20, 2020
Yum Brands and Coronovirus Damage

Wednesday, February 12, 2020
Another Calcbench Use Case: Benchmarking DPO Changes

Tuesday, February 11, 2020
Updated Calcbench Excel Add-In

Monday, February 10, 2020
Hot Take on Cooling PPE Outlays

Monday, February 3, 2020
A Brief History of Juul Impairment Charges

Thursday, January 30, 2020
Research Note: Impairment of Leased Assets

Tuesday, January 28, 2020
Tracking Coronavirus Risk, Disclosures

Thursday, January 23, 2020
How to Find a Material Weakness

Sunday, January 19, 2020
Calcbench Tip: Email Alerts

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A Broader Look at Coronavirus Risk
Thursday, February 27, 2020

Our previous post about Yum Brands’ exposure to coronavirus risk got us wondering — what’s the potential financial impact for other companies? If vast swaths of the Chinese economy are currently under quarantine, what firms might feel real pain because of that?

We decided to run a quick analysis of S&P 500 firms that report quarterly revenue from China, comparing their Q1 2019 China revenues against total revenues for that period. Table 1, below, shows the top 12 firms we found.

As you can see, those firms collectively reported $236.8 billion in total revenue for Q1 2019, and about 8.1 percent of that — $19.26 billion — came from China. Firms with the greatest exposure included Apple ($AAPL), Starbucks ($SBUX), and MGM Resorts ($MGM).

This does not mean that these firms, or the S&P 500 overall, will see 8.1 percent of their revenue wiped out for Q1 2020 when filings for that period start arriving in late April. We know that the effect of coronavirus will be bad, but nobody really knows how bad yet.

On the other hand, our numbers above are from firms that report China revenues as a geographic segment — and not all firms do that. Some companies report China revenue as part of an Asia-Pacific geographic segment; or they report revenues from China as part of a worldwide operating segment rather than a geographic one.

All of which means that total revenue from business in China is higher than what firms actually report as segment revenue from China.

This exercise simply shows how Calcbench can sharpen your understanding of financial and operating risks, so you can ask better questions of the firms you follow. For example, these Table 1 numbers come from our Segments and Breakouts database, and they flag businesses self-proclaim significant China revenue.

You can also create email alerts for companies you follow, and fix your settings to be alerted any time those firms file earnings releases or Form 8-K filings — which is typically how a company will communicate that, oh boy, this coronavirus thing is going to make us miss our numbers. That is what Mastercard ($MA), Microsoft ($MSFT), and Apple have all had to say lately.

Then you can bounce over to our Interactive Disclosures database to search their Risk Factors, Management Discussion & Analysis, or earnings releases to see what else they’re saying about coronavirus — such as, say, whether they expect all their China revenues to evaporate for one quarter, or only a portion of China revenue over several quarters.

That’s how you can get to a fuller understanding of this new risk, and respond accordingly.

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