I have large differences in annual return numbers in my small cap value system. After doing some research i found several data errors in the Factset data. For example for DWSN Factset has AstCurQ of 67.13 while Compustat shows the correct number of 72.526. (Based on the latest 10-Q from 2020-05-07)
Looks like the difference is in other current assets, but i can`t figure out where Factset is taking its numbers from. Please look into this.
EDIT After eliminating AstCurOtherQ from my system Factset and Compustat returns are much more inline with one another. So it looks like the biggest differences for my system are in this line item.
It turns out that FactSet deducts amortization in AstCurOther and Compustat doesn’t. At least that’s the case with some companies. As Paul puts it, “we’re talking about something roughly analogous to a categorization of colors at a paint store that includes ‘other shades of blue.’ What goes in there? How the hell should we know? It’s a catch-all by design.”
I’m afraid we can’t do anything about this discrepancy.
Is there a workaround to get to the correct value of Current Assets? This is not a number that is debatable for me and is printed in every financial statement. If this is not the right number isn`t equity and every other number like ROE also wrong?
Whats really strange here is that directly after the date of the 10Q filing Factset had the correct numbers (Until 2020-05-10). But then some days after that filing there is no data and some days after that the strange numbers appear (from the previous quarter?) it looks a bit like Factset is forgetting data at some point.
It looks to me like FactSet decided that some of the current assets are actually long-term assets, since the total assets match. I would guess that I was wrong in my earlier post and the number in question is actually the restricted cash. Some companies classify restricted cash as short-term and others as long-term. At any rate, this does not affect total equity, which is the same for FactSet and Compustat.
You are right, total equity is the same. But i dont think it has to do with restricted cash, because Cash and Equivalents are the perfect sum of Cash and cash equivalents, Restricted cash and Short-term investments. I think i finally found a plausible argument for this, FactSet somehow classified some of the current other assets now as long term so they moved them to AstNonCurOtherQ. But i dont really understand where they are getting the data for this. The company itself clearly has these under current assets, why does FactSet do this and on what basis? Dont they get the data from the 10-Q and 10-K? And why is the data correct directly after the filing and than change/vanish 4-5 days after the filing?
Here are FactSet’s formulas for the items in question, I believe.
FF_ASSETS_CURR_OTH
Current Assets, Other
Page: D11032
Library: FactSet Fundamentals
Category: Balance Sheet/Assets
Units: Millions
Annual, Interim and Preliminary Items - Commercial Companies
Represents other current assets for the period and date(s) requested in local currency by default.
This is calculated as the sum of Miscellaneous Current Assets (FF_ASSETS_CURR_MISC) and Prepaid Expenses(FF_PREP_EXP).
FF_ASSETS_CURR_MISC
Miscellaneous Current Assets
Page: D10587
Library: FactSet Fundamentals
Category: Balance Sheet/Assets
Units: Millions
Annual, Interim and Preliminary Items - Commercial Companies
Represents all other current assets not classified as cash, short-term investments, receivables, inventories, or prepaid expenses.
It includes:
Accrued income - current
Assets held for sale – current
Assets of discontinued operations
Deferred tax asset – current
Prepaid and other current assets, if reported as combined and cannot be separated
Unqualified current advances
It excludes:
Deferred expenses reported as part of current assets
Deferred financing costs expenses reported as part of current assets
FF_PREP_EXP
Prepaid Expenses
Page: D10879
Library: FactSet Fundamentals
Category: Balance Sheet/Assets
Units: Millions
Annual, Interim and Preliminary Items - All Industries
Represents all the payments made for expenses not immediately recognized on the income statement.
Prepaid expenses differ from deferred charges in that prepaid expenses are ordinary business expenses while deferred charges are less frequent and generally of greater magnitude. Furthermore, prepaid expenses are generally short-term, while deferred charges generally extend to more than one accounting period, depending on how long the company expects to benefit from the expense. Common examples of prepaid expenses are prepaid rent, insurance, and interest. Common examples for deferred charges are debt issuance cost, start-up costs, and capitalized research and development. Prepaid expenses represent cash that had been paid out as opposed to other current assets, such as receivables where cash is expected to be received.
It includes:
Any prepaid expenses arising from ordinary business course
Prepaid insurance
Prepaid rent
Prepaid taxes
It excludes:
Advance payments relating to inventories
Advances to staff/employees
FF_ASSETS_OTH
Assets - Other
Page: D11045
Library: FactSet Fundamentals
Category: Balance Sheet/Assets
Units: Millions
Annual Item - All Industries:
Represents other assets for the period and date(s) requested in local currency by default.
This is calculated as Assets (including Intangibles) - Other (FF_ASSETS_OTH_INTANG) less Intangible Assets (FF_INTANG).
Zero is substituted for Intangible Assets (FF_INTANG) if it’s not available.
Note Results are rounded to five decimal places to alleviate floating-point rounding error. This forces small non-zero numbers to round to zero and may result in certain formula ratios returning N/A.
FF_ASSETS_OTH_INTANG
Other Assets (incl. Intangibles)-Other
Page: D12153
Library: FactSet Fundamentals
Category: Balance Sheet
Units: Millions
Annual Item - All Industries
Represents all assets that cannot be classified as current assets, long-term receivables, investments in unconsolidated subsidiaries, other investments and property, plant and equipment.
It includes:
Deferred charges
Other tangible assets
Intangible assets
I lost the point… Monday rebalance will still be with Compusat data? If yes, when will start Factset ? And when Factset will start how can we set if a live PF shouuld work with preliminary data or not (excluse)? In Sim we choose before to re-run but in live PF?
Thank you very much for your help.
Fabio
Compustat will be going away by June 26. The Monday rebalances will be using FactSet data, using prelims, after that. But if you don’t want to use prelims, we’ll make that possible too.
Subscribers are not currently able to run sector/subsector/industry/subindustry-related comparisons, check differences related to ownership, or know what adjustments might be called for regarding short interest.
Subscribers are also unaware about what additional options might be available on an interim or permanent basis regarding CompuStat data.
There are now less than three weeks before the three month window during which subscribers could theoretically run parallel between the two data providers will close.
RBICS will be implemented this week. Ownership data will be next. We’re still looking into short interest options. Users will be able to license Compustat data and we will continue to serve those users with licenses.