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I am evaluating Charles Schwab and Citigroup using the TMF's RMEssentials spreadsheet. Could someone equate the input data for RMEssentials for a financial services stocks. For example, is Total Expenses the same as COGS? Is segregated cash apart of Cash and Equivalents? What should be included under Current Liabilities? Help!
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Give this link a try:
http://www.fool.com/portfolios/rulemaker/2000/rulemaker000124.htm

This RM article outlines Finance King Criteria - American Express is the company being reviewed. You will see the criteria listed.

You won't be able to use the RMessentials spreadsheet as is.

Hope this helps.
Ev Luecke - St. Louis, Mo.
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Dear alanroll,

Depending on how much time you have, you may wish to look at the Fool's banking study, starting at

http://www.fool.com/dripport/1998/Dripport980316.htm

IMHO this would be a hard comparison to make. Citigroup is the merger between an insurance company and a bank, and as such looks different than a normal banking company. Schwab is a major broker, so perhaps the metrics may be a bit more useful. My guess is that for Schwab, the equivalent of COGS would be all non-interest expenses except "compensation and benefits" and "advertising and market development" (these seem to me to be operating expenses).

For banks there are some metrics at www.ffiec.gov. Click on "bank" or "BHC" (bank holding company), type in the name of the bank you wish to analyze. It compares with a bunch of metrics your bank to a peer group and gives you what percentile it is in (e.g. 60% means better than 60% of banks in peer group in this metric).

Lleweilun Smith
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Lleweilun: Thanks for your response. I realize C and SCH are not the same animal. I am looking for a way to evaluate these kinds of companies, not necessarily to compare them. I have concluded that RMEssentials in its published form is not suited to these companies. I agree that different metrics are required. I have E-mailed TMF on this subject. They say this is in works but currently on the back burner. Thanks again for your ideas.
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alanroll asked:
I am evaluating Charles Schwab and Citigroup using the TMF's RMEssentials spreadsheet. Could someone equate the input data for RMEssentials for a financial services stocks. For example, is Total Expenses the same as COGS? Is segregated cash apart of Cash and Equivalents? What should be included under Current Liabilities? Help!

I'm a different person with the SAME QUESTION! Thanks for posting. Thanks to everyone for the answers so far.

Last night, I was trying to show my financial group how to look at an annual report. We did fine on the Intel report I brought, but Charles Schwab and Citigroup obviously didn't fit what I learned in the two classes I just took here at Motley Fool. So I'm here doing a little more education.

Ok, we did have a little problem on Intel. Are "short-term investments" and "trading assets" part of "cash and equivalents" when determing the flow ratio? We decided "short-term investments" must be, and we didn't know about "trading assets." I tried looking up the latest Rule Maker Ranker, but it uses the 10-Q which I have a hard time reading on the computer screen and I don't know how to print in readable form either. (Two more questions that the knowledgable could volunteer to answer!)

Thanks!
Vickifool


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Trading securities are generally not considered a cash equivalent. Short-term investments would be something like a 3-month bond. Anything that matures in 90 days or less is at little market value risk and is considered a cash equivalent.

Trading securities would generally be stocks and bonds with longer maturities. In essence they are a cash parking place, but since the market value fluctuates, they aren't considered a cash equivalent. They are similar to marketable securities (also known as available-for-sale investments), except that the expected holding period is short-term rather than long-term.

I hope my answer isn't too confusing.

Mike
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