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Fundamentals#

Fundamental data consists mainly of the income statement and balance sheet of a company. We extract these data from Alpha Vantage to get a sufficient number of quarterly filing data. The main line items of interest are:

  • Total Revenue
  • Gross Profit
  • Operating Expenses
  • Net Income
  • Total Shareholder Equity
  • Total Debt
  • Number of Shares Outstanding

From these line items, we can calculate the following metrics and ratios:

  • Net Profit Margin
  • Earnings per Share (EPS)
  • Price to Earnings Ratio (P/E)
  • Price to Sales Ratio (P/S)
  • Debt to Equity Ratio (D/E)

The processing of the fundamental data and conversion into Markdown tables that can be fed to the LLM models are shown in the StockFundamentalsTool. Especially computation of YoY growth rates is important for evaluating the trend and growth of a company.