Quant Concepts: Strong balance sheet strategy

How well do companies with solid books perform? CPMS's Emily Halverson-Duncan investigates with a universe of U.S. stocks

Emily Halverson-Duncan 14 February, 2020 | 1:31AM



Emily Halverson-Duncan: Welcome to Quant Concepts. Equity analysts often make references to different ratios they use to determine whether a stock is a buy or a sell. These ratios are created from information derived from many different sources, one of which is a company's balance sheet. Recall that the balance sheet is a statement outlining a company's assets, liabilities and shareholder equity. Analysts use the information available in the statement to help them make their decision surrounding whether or not that company is a worthwhile investment. Today's strategy is going to look for companies with strong balance sheets in the CPMS U.S. universe and see how that model would have done over time. So, let's take a look at how to build that.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Empower your investment selection

See more episodes of Quant Concepts here

About Author

Emily Halverson-Duncan  Emily is Director, CPMS Sales at Morningstar

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies