Data Analytics in Accounting, Economics & Finance

This document discusses the application of data analytics in accounting, economics, and finance. It covers topics such as ratios, regression analysis, and spaceship analysis. The document explores the importance of management effectiveness, profitability, and valuation measures. It also explains the applications of regression analysis in financial modeling and provides insights into spaceship analysis and its evaluation criteria.

Data Analytics in Accounting,
Economics & Finance

Contents
1. Ratios:..........................................................................................................................................3
Management effectiveness.................................................................................................3
Profitability........................................................................................................................3
Valuation measures..............................................................................................................3
2. Regression analysis......................................................................................................................4
3. SpaceShip Analysis......................................................................................................................4

1. Ratios:
Management effectiveness
Return on assets = net income available/ total
assets = 43661 / 111892 39.02%
Return on equity = net income available/ total
equity = 43661 / 76029 57.43%
Debt Ratio = total liability/ total asset = 35863 /
111892 32.05%
From above ratios it has been analysed that company has company has positive return on
assets and return on equity i.e. 39.02% and 57.43% respectively. This shows that company is
efficient to utilise their capital and assets to generate sales. Also debt proportion in total assets is
less than half i.e. 32.05 % only, which shows that company’s liquidity position is quite good.
However, company should minimise their debts to strengthen their solvency position.
Profitability
Profit margin = Net income / Sales = 43661 /
121345 * 100 39.98%
Operating margin = Operating Income / Sales =
61044 / 121345 *100 50.31%
As stated in above table profit margin of company 39.98% and operating margin is
50.31% respectively. This shows that company is efficient to generate profitability out of core
business operations and overall business activities (Netwealth Group Limited. 2020).
Valuation measures
Market cap (intra-day) 5 3.9B
Enterprise value 3 3.81B
Earnings power = EBIT/ sales = 62745 / 121345 51.71%
Price/sales (ttm) 31.48

Price/book (mrq) 51.28
Enterprise value/revenue 3 30.72
Enterprise value/EBITDA 6 58.83
Company’s market-cap is 3.9 billion and Earning power is 51.71% which shows that
company’s shares have quite greater value. Company’s net worth is also effective which is
around 3.81 billion. Above analysis of ratios shows that company is effective in managing their
balance sheet and profit/loss account.
2. Regression analysis
Regression analysis is collection of mathematical techniques used to approximate the
dependencies among a variable that is based but one or even more parameters. The intensity
of relations among variables could be evaluated and the potential relationship among them could
be modelled. The analyses of regression contain a variety of variants, including linear, multi-
linear, and – anti. Simple linear as well as multi linear are most common frameworks. For
complex data sets where the dependent, different variables display non-linear relationship,
nonlinear correlation testing is widely used. The analytical regression has variety of financial
applications. The statistically important approach is for instance, pricing model of capital assets.
CAPM function is basically a formula for calculating the correlation between asset's anticipated
return and market risk premiums (About us. 2020).
3. SpaceShip Analysis
(a.) Investing in businesses that are deliberately chosen for Space Ship Capitals by
using technique of WWG, Space Ship Universe as well as Space Ship Planet Portfolio are
separate from Space Ship Origin Portfolios. WWG mechanism is a pillar in investment
theory of Spaceship Finance, which determines the competitive benefits of an
organisation and the prospects for more products or service expansion.
(b.) The network effects reflect the increasing impact of a company's commodity
when more customers can use. Spaceship's framework of WWG considers following
factors for assessing a corporation's network effect. • Vorteil scale: cheaper costs
(compared with competitive pricing) or obstacle to market entrance. • Intangible assets:
trademarks, patents including regulatory approvals which can limit competition or enable

businesses to charges higher. • Intangible assets: • Shifting costs: an obstacle for unit
managers, whether in terms of time, resources, risk or annoyance, when transferring from
one supplier to another. Administration: a crucial WWG aspect. When constructing new
ones, the management will protect the current competitive advantages of an organisation.
Infrastructure Earth investment policy of portfolio will concentrate through investing in
corporation that relate to the success of agenda for SDGs.
(c.) In evaluating an organisation to be integrated into the Portfolio, the WWG
approach is applied. Organization should also adhere to some or all of 17 targets in SDG
agenda as calculated by Space Resources on the basis of environmental, social or
management evidence and/or investment analysis, to be contained in Spaceship Earth
portfolio (Spaceship Analysis. 2020).
REFERENCES
Online:
Netwealth Group Limited. 2020. [Online]. Available through: <
https://au.finance.yahoo.com/quote/NWL.AX/financials?p=NWL.AX>
About us. 2020. [Online]. Available through: <https://www.netwealth.com.au/web/what-we-do>
Spaceship Analysis. 2020. [Online]. Available through: <https://www.spaceship.com.au>