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Descriptive Statistics of Selected Financials of the North American Companies

Submitted to

Skander Lazrak

Associated Professor of Finance

Submitted by

Deepan Kumar Das

6229934

Brock University

February 28, 2018

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Abstract

This paper intends to show descriptive statistics derived by means of SAS Studio using data retrieved from

Wharton Research Data Services (WRDS) using CUSIPs over the period ranging from 2012 to 2016. The

data on the selected annual financials of the North American companies were filtered to generate descriptive

statistics later.

Keywords: descriptive statistics, SAS

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Table of Contents

1. Introduction ........................................................................................................................................... 5
2. Data Extraction and Filtration ............................................................................................................... 5
3. Description of the Sample ..................................................................................................................... 6
4. Analysis of the Descriptive Statistics.................................................................................................... 6
5. Conclusion ............................................................................................................................................ 7
6. Appendix ............................................................................................................................................... 8
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List of Tables

Table 1: Moments of the financials............................................................................................................... 8

Table 2: Quantiles of the financials .............................................................................................................. 9
Table 3: Normality test of the financials ..................................................................................................... 10
Table 4: Moments of the financials with respect to economic sectors........................................................ 11
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1. Introduction

Descriptive statistics facilitates in describing and understanding the characteristics of a data set by way of

short summaries about the sample and measures of the data. The recognized types of descriptive statistics

are mean, median, mode, standard deviation, kurtosis and skewness. They are either measures of central

tendency or measures of variability. And we can use graph or tables to help us understand meaning of the

data being analyzed. Measures of central tendency indicates the central position of a distribution for a data

set, whereas measures of variability give an idea as to how spread-out the distribution is.

2. Data Extraction and Filtration

On WRDS, at first, a list of CUSIPs of all North American index constituents over a period of 2001-2018

was generated. Using these CUSIPs, six annual financials (total assets, total dividend, net income, total

revenue, total shareholders’ equity, total market value), and economic sector codes of the companies were

queried on WRDS. It is worth mentioning that while querying, it was made sure that the currency was USD,

industry format industrial (INDL), population source domestic, and company status active. After receiving

the queried data, for the sake of uniformity and precision of the analysis, the companies which had both

actual period end date and data date as December 31 in any of the year between 2012 and 2016 were taken

into consideration. In the final dataset, all the missing values (blanks in .csv file) were inputted as dots (.)

automatically by SAS. Hence, the missing values did not pollute the descriptive statistics.
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3. Description of the Sample

The query on WRDS generated data of 6210 rows on financials of 1324 companies in North America spread

across 11 economic sectors: basic materials, capital goods, communication services, consumer cyclicals,

consumer staples, energy, financials, health care, technology, transportation and utilities. In addition to that,

the companies are diverse in terms of their financials. Over 2012-2016, the sample consists of total assets

of the companies ranging from USD 0.09 million to USD 3.28 trillion having median USD 4.37 billion.

Their net incomes range from USD -14.68 billion to USD 83.96 billion, and market values from USD 0.96

million to USD 540.65 billion having the medians USD 110.34 million and USD 2.50 billion. Please refer

to table 2 to get these quantiles and more.

4. Analysis of the Descriptive Statistics

The descriptive statistics concerning the six financials (variables) of the companies were analyzed over the

period 2012-2016. The means of total assets, net income and total revenue (please refer to table 1) have

steadily decreased in the period, whereas the means of total dividend, total shareholders’ equity and total

market value have increased. The distributions of all the variables over the years have remained positively

skewed, meaning asymmetry owing to their means being greater than their medians. On the other hand, the

kurtosis of the distributions of all those variables is many times greater than 3 indicating that they are all

leptokurtic, and the variance is the result of infrequent extreme observations.

Conducting normality tests on the variables corroborates the fact that the distributions of the variables are

not normal (please refer to table 3). There have been 3 tests of normality on the variables: Kolmogorov-

Smirnov Test, Cramer-von Mises Test and Anderson- Darling Test. All 3 tests equivocally lead to the same

conclusion for all the variables. Kolmogorov- Smirnov Test statistics have p values <0.010 across all the
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variables, whereas Cramer-von Mises Test and Anderson- Darling Test statistics have p values <0.005, all

of which reject the null hypothesis of normality.

Some interesting facts arise when the variables are analyzed with respect to the economic sectors the

companies belong to (please refer to table 4). Companies in the financial sector has, as expected, the highest

average total assets, and companies in technology, which does not require physical assets much, has the

lowest average. Though companies in energy sector earn the highest average revenue, and companies in

technology sector do the lowest, however, companies in communication services sector are the ones which

have the highest average net income, and basic materials sector has experienced the lowest average net

income. It is the companies in communication services sector which also have given the highest average

dividend, whereas consumer cyclicals sector has given the lowest average dividend. With respect to average

total market value, companies in communication services sector hold the highest average. Companies in

consumer cyclicals have the lowest average total market value. Last but not least, energy sector is backed

by highest average total shareholders’ equity, whereas transportation is backed by the least. Across all the

sectors the skewness of the distributions of the variables is still positive. The kurtosis of all distributions of

the variables across the sectors is leptokurtic except the one of total market value and total revenue in

communication services sector, and of total assets in transportation sector.

5. Conclusion

Analyzing the descriptive statistics of the variables of the companies over the period 2012-2016 help reveal

insights on central tendency and variability of the financials. Over the years, though skewness and kurtosis

of the variables have remained similar in nature, a little difference has been observed when the variables

are analyzed with respect to economic sectors.

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6. Appendix

The table shows year-wise (2012-2016) moments of the company financials (total assets, total dividend, net income, total revenue, total

shareholders’ equity and total market value). All the financials are in USD million when extracted from WRDS.

2012 2013 2014 2015 2016 2012-2016

Total Assets
No. of observations 1201 1228 1235 1248 1298 6210
Sum of observations 51433625.40 51609470.20 51694323.20 50392388.30 52064598.80 257194406.00
Mean 42825.66 42027.25 41857.75 40378.51 40111.40 41416.16
Standard Deviation 219162.51 209615.44 206554.34 193595.88 191367.46 204018.69
Variance 4.80e10 4.39e10 4.26e10 3.74e10 3.66e10 4.16
Skewness 9.60 9.72 9.86 10.05 10.43 9.93
Kurtosis 103.99 109.08 112.65 119.75 130.01 114.43
Total Dividend
No. of observations 1182 1209 1219 1230 1284 6124
Sum of observations 418484.16 542283.74 448880.74 459962.18 499948.82 2369559.66
Mean 354.04 448.53 368.23 373.95 389.36 386.93
Standard Deviation 1177.60 3053.24 1205.99 1177.25 1238.86 1731.13
Variance 1386746.93 9322306.86 1454428.18 1385933.68 1534796.99 2996823.96
Skewness 6.78 22.14 6.54 6.18 6.42 25.72
Kurtosis 58.86 565.29 52.36 45.23 50.71 1091.10
Net Income
No. of observations 1201 1228 1235 1248 1298 6210
Sum of observations 851824.59 1066639.08 915095.40 684666.27 788604.34 4306829.71
Mean 709.26 868.59 740.96 548.61 607.55 693.53
Standard Deviation 2648.35 3698.38 2280.12 2450.75 2116.19 2691.81
Variance 7013777.71 13678020.60 5198958.06 6006221.76 4478271.95 7245864.76
Skewness 7.69 12.70 6.15 3.36 4.83 9.70
Kurtosis 90.71 238.73 56.47 30.16 37.76 198.95
Total Revenue
No. of observations 1201 1228 1235 1248 1298 6210
Sum of observations 12192572.10 12281836.50 12176685.50 10979697.00 11278212.50 58909003.70
Mean 10152.01 10001.49 9859.66 8797.83 8688.91 9486.15
Standard Deviation 30888.36 30217.94 28749.87 22677.21 21603.61 27023.78
Variance 954091032.00 913124257.00 826555508.00 514256272.00 466716388.00 730284767.00
Skewness 8.63 8.77 8.56 6.44 6.02 8.38
Kurtosis 104.02 108.19 104.14 57.30 48.33 104.30
Total Shareholders’
Equity
No. of observations 1201 1228 1235 1248 1298 6210
Sum of observations 8250777.14 8752541.59 8661709.42 8504939.72 9010068.31 43180036.20
Mean 6869.92 7127.47 7013.52 6814.85 6941.50 6953.30
Standard Deviation 19264.58 19612.05 19652.29 19485.11 19576.21 19514.35
Variance 371124258.00 384632528.00 386212794.00 379669887.00 383228179.00 380810000.00
Skewness 6.12 6.17 6.53 6.92 6.89 6.53
Kurtosis 46.07 47.03 53.34 60.53 60.90 53.60
Total Market Value
No. of observations 921 937 958 1011 1128 4955
Sum of observations 8603533.83 11504751.20 11966451.20 12223663.40 14707396.40 59005796.00
Mean 9341.51 12278.28 12491.07 12090.66 13038.47 11908.33
Standard Deviation 26508.34 32864.75 32481.25 34101.09 35791.53 32687.90
Variance 702692327.00 1080092389.00 1055031643.00 1162884740.00 1281033895.00 1068498876.00
Skewness 7.33 6.77 6.17 7.42 7.21 7.08
Kurtosis 71.47 61.27 49.34 77.07 71.10 68.74
Table 1: Moments of the financials
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The table shows the year-wise (2012-2016) quantiles of the financials (total assets, total dividend, net income, total revenue, total

shareholders’ equity and total market value). 100% Maximum = maximum value, 75% Q3 = 3rd quantile, 50% Median = 2nd quantile or

median, 25% Q1 = 1st quantile, and 0% Minimum = minimum value. All the financials are in USD million when extracted from WRDS.

2012 2013 2014 2015 2016 2012-2016

Total Assets
100% Maximum 3222422.00 3270108.00 3248176.00 3221917.00 3287968.00 3287968.00
75% Q3 15270.70 16187.24 16742.30 16924.36 17355.17 16495.00
50% Median 3853.45 4126.13 4454.37 4694.86 4701.81 4371.75
25% Q1 985.47 1111.68 1245.08 1283.79 1360.25 1191.24
0% Minimum 0.09 4.06 1.34 17.84 14.25 0.09
Total Dividend
100% Maximum 15827.00 85419.00 15323.00 12090.00 14959.00 85419.00
75% Q3 183.35 190.00 210.09 223.00 219.54 204.88
50% Median 27.93 24.75 31.44 37.39 35.70 31.77
25% Q1 0.00 0.00 0.00 0.00 0.00 0.00
0% Minimum 0.00 -4.55 0.00 -325.37 -271.91 -325.37
Net Income
100% Maximum 44880.00 83963.00 32520.00 24442.00 24733.00 83963.00
75% Q3 483.70 472.34 538.00 448.60 491.00 489.00
50% Median 103.33 116.56 120.00 101.14 108.25 110.34
25% Q1 18.57 24.00 26.47 7.00 15.43 19.51
0% Minimum -9241.69 -14248.66 -7367.00 -14685.00 -8916.44 -14685.00
Total Revenue
100% Maximum 467153.00 475793.48 455454.66 311661.83 278109.03 475793.48
75% Q3 6868.00 6886.57 7179.00 7031.25 7251.00 7033.00
50% Median 1567.63 1701.13 1859.92 1806.63 1857.05 1775.79
25% Q1 462.32 490.20 544.94 549.36 586.02 528.49
0% Minimum 0.00 0.00 0.00 0.00 -1.30 -1.30
Total Shareholders’ Equity
100% Maximum 204069.00 211178.00 232065.00 247573.00 254190.00 254190.00
75% Q3 4789.10 5371.69 5263.00 5036.39 5141.90 5126.00
50% Median 1195.85 1345.48 1419.94 1393.41 1442.45 1362.28
25% Q1 394.24 439.30 458.13 448.16 472.39 443.14
0% Minimum -8341.00 -6928.00 -11203.00 -11476.00 -10900.00 -11476.00
Total Market Value
100% Maximum 389648.10 438702.00 388382.45 528168.43 540659.33 540659.33
75% Q3 7526.29 9879.86 9692.02 8742.17 10034.06 9068.25
50% Median 1935.80 2527.88 2596.67 2322.30 2880.62 2503.92
25% Q1 692.83 954.34 955.96 839.93 1131.73 925.84
0% Minimum 5.06 3.72 0.96 4.72 2.90 0.96
Table 2: Quantiles of the financials
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The table shows the output of the normality test on the financials (total assets, total dividend, net income, total revenue, total shareholders’ equity and total

market value). D, W-Sq and A-Sq are statistics from Kolmogorov- Smirnov Test, Cramer-von Mises Test and Anderson- Darling Test.

Total Assets Total Dividend Net Income Total Revenue Total Shareholders’ Equity Total Market Value
Kolmogorov-Smirnov Test
Statistic (D) 0.42 0.41 0.31 0.36 0.34 0.35
P Value (Pr>D) <0.010 <0.010 <0.010 <0.010 <0.010 <0.010
Cramer-von Mises Test
Statistic (W-Sq) 377.46 323.45 252.18 260.83 262.09 206.66
P Value (Pr>W-Sq) <0.005 <0.005 <0.005 <0.005 <0.005 <0.005
Anderson-Darling Test
Statistic (A-Sq) 1797.89 1546.59 1217.77 1276.18 1286.36 1016.67
P Value (Pr>A-Sq) <0.005 <0.005 <0.005 <0.005 <0.005 <0.005
Table 3: Normality test of the financials
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The table shows moments of the financials total assets, total dividend, net income, total revenue, total shareholders’ equity and total market value) with respect to the

economic sectors the companies belong to. The numbers in the column indicate the code for a specific sector. Here, 600 = transportation, 700 = utilities, 800 = financials,

905 = health care, 925 = capital goods, 935 = energy, 940 = technology, 970 = basic materials, 974 = communication services, 976 = consumer cyclicals, 978 = consumer

staples. All the financials are in USD million when extracted from WRDS.

600 700 800 905 925 935 940 970 974 976 978
Total Assets
No. of observations 191 270 1146 424 498 315 503 349 155 580 311
Sum of observations 2237926.78 8165631.70 173082613 7697389.66 8270749.60 13633308.10 3541588.71 5012804.75 8606529.58 7120342.94 6212832.05
Mean 11716.89 30243.08 151031.94 18154.22 16607.93 43280.34 7040.93 14363.33 55525.99 12276.45 19976.95
Standard Deviation 15107.71 30751.09 450706.17 32868.00 60802.74 81927.59 15948.19 21667.15 80733.48 35228.78 35144.19
Variance 228242994.00 945629768.00 2.03e11 1080305826.00 3696973641.00 6712130746.00 254344983.00 469465781.00 6517895346.00 1241067042.00 1235114326.00
Skewness 1.52 1.76 4.24 2.72 8.80 2.66 4.61 2.68 2.13 5.07 3.13
Kurtosis 1.11 3.42 19.32 7.67 85.69 6.45 26.51 7.49 4.52 26.48 11.92
Total Dividend
No. of observations 191 258 1111 424 498 315 502 349 153 579 311
Sum of observations 35841.92 127997.81 636416.95 213089.70 148529.55 308130.03 98492.44 99256.62 224804.05 105013.43 209658.34
Mean 187.65 496.11 572.83 502.57 298.25 978.19 196.20 284.40 1469.30 181.37 674.14
Standard Deviation 481.40 565.40 3305.25 1427.65 949.03 2420.95 655.42 558.82 2629.72 475.32 1308.99
Variance 231747.90 319677.56 10924741.10 2038186.61 900669.07 5860999.49 429584.57 312288.40 6915477.72 225931.22 1713471.30
Skewness 3.81 2.27 19.22 3.30 6.99 3.45 5.17 3.88 2.41 4.60 2.59
Kurtosis 14.73 8.12 446.01 10.16 57.30 12.33 30.19 18.10 4.97 23.91 6.85
Net Income
No. of observations 191 270 1146 424 498 315 503 349 155 580 311
Sum of observations 127092.42 154677.42 1148570.38 470447.24 275841.13 377028.59 277988.14 57482.90 291687.07 288727.69 416154.78
Mean 665.40 572.87 1002.24 1109.54 553.89 1196.91 552.66 164.70 1881.85 497.80 1338.11
Standard Deviation 1497.02 1243.63 3997.51 2770.87 1732.48 5541.66 1833.24 1480.44 4420.08 1295.83 2344.56
Variance 2241080.48 1546637.94 15980136.70 7677729.75 3001510.66 30710105.70 3360777.64 2191714.20 19537146.30 1679181.04 5496985.93
Skewness 3.37 1.25 10.96 3.84 3.10 3.69 5.52 -2.04 2.71 4.81 2.36
Kurtosis 14.44 28.73 186.27 18.44 26.54 21.25 36.81 21.55 7.41 26.48 6.90
Total Revenue
No. of observations 191 270 1146 424 498 315 503 349 155 580 311
Sum of observations 1785442.61 2387290.47 9292484.57 4890753.30 5035093.19 10671252.60 2372512.46 3055366.01 4047383.73 5633186.69 4065431.86
Mean 9347.86 8841.81 8108.62 11534.79 10110.62 33876.99 4716.72 8754.63 26112.15 9712.39 13072.12
Standard Deviation 13018.73 81680519.50 19401.54 22395.61 21418.48 83975.15 11372.84 13731.98 37570.29 26461.59 21942.81
Variance 169487575.00 9037.72 376419987.00 501563575.00 458751557.00 7051827420.00 129341627.00 188567281.00 1411527132.00 700216217.00 481487119.00
Skewness 2.17 2.19 3.50 3.70 4.75 3.66 5.38 2.96 1.84 4.78 4.10
Kurtosis 4.20 6.69 12.49 17.86 26.84 13.85 36.46 9.68 2.46 22.62 22.02
Total Shareholders’
Equity
No. of observations 191 270 1146 424 498 315 503 349 155 580 311
Sum of observations 551026.15 2450405.59 13611323.10 3075050.15 2413246.21 6664900.04 1644092.41 2217979.40 2717035.41 1799283.70 2104743.53
Mean 2884.95 9075.57 11877.24 7252.47 4845.87 21158.41 3268.57 6355.24 17529.26 3102.21 6767.66
Standard Deviation 4208.48 10148.12 30727.17 15496.89 13091.03 40787.53 6853.46 10282.61 30762.73 7756.99 12655.48
Variance 17711367.70 102984387 944159223.00 240153631.00 171375237.00 1663623346.00 46969979.50 105732181.00 946345986.00 60170967.90 160161263.00
Skewness 2.33 2.42 4.90 3.29 7.28 2.79 3.85 2.96 2.75 5.00 2.77
Kurtosis 6.88 7.05 27.26 10.78 63.77 7.21 20.83 9.23 7.16 28.37 8.25
Total Market Value
No. of observations 176 230 754 373 465 270 442 270 65 533 261
Sum of observations 2033677.36 3148894.63 8494364.60 6780717.48 6061971.04 6134670.61 3579673.74 2207275.94 2335832.05 3672781.63 5755282.81
Mean 11554.98 13690.84 11265.73 18178.86 13036.49 22721.00 8098.80 8175.09 35935.87 6890.77 22050.89
Standard Deviation 20253.30 13760.07 31351.92 36101.84 32384.61 59993.26 22687.09 11132.27 67884.60 11627.51 38936.79
Variance 410196299.00 189339734.00 982943347.00 1303343473.00 1048763196.00 3599191648.00 514704063.00 123927589.00 4608319179.00 135199194.00 1516074001.00
Skewness 3.06 1.89 6.38 3.03 5.72 4.82 5.98 2.29 2.05 3.81 2.40
Kurtosis 9.55 4.67 46.38 9.65 40.38 25.30 41.89 6.16 2.82 18.95 5.55
Table 4: Moments of the financials with respect to economic sectors
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The following code snippets generate the output shown in the tables.

proc import out=mydata.df20122016 /*for the financials of year 2012-

2016*/
datafile='/home/dd16er0/myfolders/df20122016.xlsx' dbms=XLSX;
getnames=yes;
run;

proc univariate data=mydata.df20122016;

var at dvt ni revt teq mkvalt;
/*at = total assets, dvt = total dividend, ni = net income, revt =
total revenue, teq = total shareholders’ equity, mkvalt = total market
value*/
class fiscal; /*for year-wise 2012-2016 descriptive statistics*/
run;

proc univariate data=mydata.df20122016;

var at;
class spcseccd; /*for economic sector-wise descriptive statistics*/
run;

/*to test normality*/

proc capability data=mydata.df20122016 normaltest;
var at dvt ni revt teq mkvalt;
run;