Finance Toolkit
Transparent and Efficient Financial Analysis
8 followers
Transparent and Efficient Financial Analysis
8 followers
Microsoft's P/E ratio on the same day ranged from 28.93 to 34.4 depending on the source; all correct, all using different methods, most undisclosed. FinanceToolkit fixes this. It's an open-source Python library with 200+ financial metrics where every formula is fully transparent and documented. No black boxes, no required paid-subscription methodology, no conflicting definitions across sources. Also has a MCP server attached!
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While browsing a variety of websites, I repeatedly observed significant fluctuations in the same financial metric among different sources. Similarly, the reported financial statements often didn't line up, and there was limited information on the methodology used to calculate each metric.
For example, Microsoft's Price-to-Earnings (PE) ratio on the 6th of May, 2023 is reported to be 28.93 (Stockopedia), 32.05 (Morningstar), 32.66 (Macrotrends), 33.09 (Finance Charts), 33.66 (Y Charts), 33.67 (Wall Street Journal), 33.80 (Yahoo Finance) and 34.4 (Companies Market Cap). All of these calculations are correct, however the method of calculation varies leading to different results. Therefore, collecting data from multiple sources can lead to wrong interpretation of the results given that one source could apply a different definition than another. Most providers don't document which they use. In the meantime, I report it at 32.07 (diluted), 31.96 (non-diluted), 30.07 (TTM diluted) and 29.93 (TTM non-diluted).
This is why I designed the FinanceToolkit, this is an open-source toolkit in which all relevant financial ratios (200+), indicators and performance measurements are written down in the most simplistic way allowing for complete transparency of the method of calculation. This enables you to avoid dependence on metrics from other providers that do not provide their methods. With a large selection of financial statements in hand, it facilitates streamlined calculations, promoting the adoption of a consistent and universally understood methods and formulas.