Prompt: Warren Buffet Stock Analysis 2
Calculation of Key Financial Metrics
Objective: Compute and summarize core financial ratios and performance metrics that Buffett empha-
sizes.
Instructions:
- Metrics to Calculate:
- Return on Equity (ROE): Compare historical ROE trends.
- Owner Earnings: Calculate as (Net Income + Depreciation/Amortization – Capital Expen-
ditures). - Profit Margins: Evaluate both operating and net margins.
- Revenue Growth: Compute year-over-year growth rates.
- Debt Ratios: Calculate debt-to-equity, interest coverage, etc.
- Output: Present a detailed table of these metrics with historical trends, highlighting significant
deviations or improvements.