Picking a low debt ratio stock

Category : Uncategorized

Picking a low debt ratio stock

Please make sure you have the most updated mfd_dm, mfd_ta and mfd_tex packages for Stata installed for this post.

*
net from "http://www.researchforprofit.com/stata/mfd_dm"
net from "http://www.researchforprofit.com/stata/mfd_ta"
net from "http://www.researchforprofit.com/stata/mfd_tex"
* click on the blue mfd_dm package and then "click here to install" 
*

If you need to pick a stock that has low debt ratio, then you need to download stocks’ financial data and sort them based on their debt ratios.

*
* How to obtain Liability/Assets
clear all
cd "/Users/mfd/Desktop"

* Get the list of all DJI component companies (^DJI)
* Get the list of all DJA component companies (^DJA)
* Get the list of all NYSE component companies (^NYA)
* Get the list of all NASDAQ component companies (^IXIC)
mfd_dm_components, symbol(^DJI)
levelsof Symbol, local(tickers)

local counter=1
foreach aa of local tickers {
	di "BS `counter': `aa'"
	clear
	qui: capture: mfd_dm_statements `aa', freq(a) st(BS) type(wider)
	if (_rc==0) { 	
		qui: if (`counter'!=1) append using BS.dta
		qui: save BS.dta, replace
		local counter = `counter'+1	
	}
}

gen liabities_to_assets = total_liabilities/total_assets
keep symbol name date liabities_to_assets
keep if (year(date)==2012)
sort liabities_to_assets
*

Screen Shot 2013-12-28 at 2.02.01 PM