Financials for all companies cannot be summarised using a single template, since similar items may be interpreted in various manners depending on the industry a company operates in (for example, interest income for a utility company is different from interest income for a bank). Our product therefore uses four templates, one each for:
- Industrial companies
A company can have only one template at any given time. If a company is deemed to have changed its industry type (for example, a utility company sells its utility business and goes into the insurance business) then all of its historical financials are re-coded to reflect this utility business.
The Banking industry template is used for Bank Holding Companies, Savings Institutions and Commercial Banks. Bank Holding Companies are comprised of companies primarily engaged in holding the securities of (or other equity interests in) Savings Institutions and Commercial Banks. Savings Institutions are primarily engaged in accepting time deposits, making mortgage and real estate loans, and investing in high-grade securities. Commercial Banking is composed of companies primarily engaged in accepting demand and other deposits and making commercial, industrial and consumer loans. Commercial banks and branches of foreign banks are included in this industry.
Banks may also provide trust, fiduciary and custodial services to others, as instructed, on a fee or contract basis, issue credit cards and engage in other secondary non-banking-related activities, such as investment banking and insurance services. The Banking industry template excludes:
- Investment Banks (classified as Industrial Companies)
- Credit Card Companies (classified as Industrial Companies)
- Mortgage Companies (classified as Industrial Companies)
- Brokerage Firms (classified as Industrial Companies)
- Mutual Funds/Trust Companies (classified as Industrial Companies)
- Insurance Companies (classified as Insurance Companies)
The Insurance/Finance industry template is used for companies primarily engaged in underwriting (assuming risk, assigning premiums, and so on), annuities and insurance policies and investing premiums to develop a portfolio of financial assets to be used against future claims. This industry includes:
- Direct insurance carriers, which are primarily engaged in initially underwriting and assuming the risk of annuities and insurance policies
- Reinsurance carriers, which are primarily engaged in assuming all or part of the risk associated with an existing insurance policy (or set of policies) originally underwritten by another insurance carrier
The insurance industry template excludes Banks with Insurance Subsidiaries (classified as Banking companies)
The Utility industry template is used for companies engaged in the provision of the following utility services: electric power, natural gas, steam supply and water supply. Within this industry, specific activities associated with the utility services provided vary by utility. The utility industry template excludes:
- Waste Management Service Companies (classified as Industrial Companies)
- Metal/Coal/Gold mining and Oil and gas exploration companies (classified as Industrial Companies)
- Energy Traders (Classified as an Industrial Company)
The Industrial industry template is used for all companies that are not classified in the Banking, Insurance/Finance or Utility industries. These include, but are not limited to Manufacturing Companies, Technology Companies, Brokerage/Asset Management Companies, Airlines, Real Estate Investment Trusts, Investment Trusts, Telephone Companies, Credit Card Companies, Mortgage Companies, Biotechnology Companies, Pharmaceutical Companies and Conglomerates.