.. _formulas_and_variables:

Formulas and Variables
======================

Below are the formulas employed by the `CompustatControls` class, alongside their associated Compustat control variable names.

Formulas and Corresponding Variables
------------------------------------

**FirmSize**: 
  - Formula: :math:`\log(\text{at})`
  - Compustat Variable: `at`

**Leverage**: 
  - Formula: :math:`\frac{\text{dltt}}{\text{at}}`
  - Compustat Variable: `dltt`, `at`

**ROA**: 
  - Formula: :math:`\frac{\text{ni}}{\text{at}}`
  - Compustat Variable: `ni`, `at`

**MTB**: 
  - Formula: :math:`\frac{\text{prcc_f} \times \text{csho}}{\text{ceq}}`
  - Compustat Variable: `prcc_f`, `csho`, `ceq`

**TobinsQ**: 
  - Formula: :math:`\frac{\text{prcc_f} \times \text{csho} + \text{dltt}}{\text{at}}`
  - Compustat Variable: `prcc_f`, `csho`, `dltt`, `at`

**SalesGrowth**: 
  - Formula: Percentage change in sale
  - Compustat Variable: `sale`

**DividendPayout**: 
  - Formula: :math:`\frac{\text{dvc}}{\text{ni}}`
  - Compustat Variable: `dvc`, `ni`

**CapexToAssets**: 
  - Formula: :math:`\frac{\text{capx}}{\text{at}}`
  - Compustat Variable: `capx`, `at`

**FirmAge**: 
  - Formula: :math:`fyear` - `ipodate`
  - Compustat Variable: `fyear`, `ipodate`

**CurrentRatio**: 
  - Formula: :math:`\frac{\text{act}}{\text{lct}}`
  - Compustat Variable: `act`, `lct`

**EarningsVolatility**: 
  - Formula: 5-period rolling standard deviation of `ni`
  - Compustat Variable: `ni`

**RDIntensity**: 
  - Formula: :math:`\frac{\text{xrd}}{\text{sale}}`
  - Compustat Variable: `xrd`, `sale`

**CashRatio**: 
  - Formula: :math:`\frac{\text{che}}{\text{at}}`
  - Compustat Variable: `che`, `at`

**InterestCoverage**: 
  - Formula: :math:`\frac{\text{ebit}}{\text{xint}}`
  - Compustat Variable: `ebit`, `xint`

**Z_Score**:
  - Formula: :math:`1.2A + 1.4B + 3.3C + 0.6D + 0.999E`
  - Compustat Variables: `act`, `lct`, `re`, `ebit`, `prcc_f`, `csho`, `lt`, `sale`

**OpEfficiency**:
  - Formula: :math:`\frac{\text{cogs}}{\text{sale}}`
  - Compustat Variables: `cogs`, `sale`

**NetWorkingCapital**: 
  - Formula: :math:`act` - `lct`
  - Compustat Variables: `act`, `lct`

**AssetTurnover**: 
  - Formula: :math:`\frac{\text{sale}}{\text{at}}`
  - Compustat Variables: `sale`, `at`

**InventoryTurnover**: 
  - Formula: :math:`\frac{\text{cogs}}{\text{invt}}`
  - Compustat Variables: `cogs`, `invt`

**ReceivablesTurnover**: 
  - Formula: :math:`\frac{\text{sale}}{\text{rect}}`
  - Compustat Variables: `sale`, `rect`

**GrossMargin**: 
  - Formula: :math:`\frac{\text{sale} - \text{cogs}}{\text{sale}}`
  - Compustat Variables: `sale`, `cogs`

**EffectiveTaxRate**: 
  - Formula: :math:`\frac{\text{txp}}{\text{pi}}`
  - Compustat Variables: `txp`, `pi`

**PE_Ratio**: 
  - Formula: :math:`\frac{\text{prcc_f}}{\frac{\text{ni}}{\text{csho}}}`
  - Compustat Variables: `prcc_f`, `ni`, `csho`

**OperatingMargin**: 
  - Formula: :math:`\frac{\text{ebit}}{\text{sale}}`
  - Compustat Variables: `ebit`, `sale`

**RD_to_Assets**: 
  - Formula: :math:`\frac{\text{xrd}}{\text{at}}`
  - Compustat Variables: `xrd`, `at`

**DebtMaturity**: 
  - Formula: :math:`\frac{\text{dltt}}{\text{dltt} + \text{dlc}}`
  - Compustat Variables: `dltt`, `dlc`

.. only:: html

   :ref:`genindex` | :ref:`modindex` | :ref:`search`
   `Show Source <../../_sources/formulas_and_variables.rst.txt>`__