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I realize all valuation ratios have their drawbacks. I stumbled upon this article recently and thought of the ROE screens.

https://www.sfmagazine.com/articles/2022/september...

I noted Shareholder Equity is no longer a meaning metric for HD.

Is the Equity value found is many of the ROE screens ("pref(equityq1.s,ceqq1.c)") Shareholder Equity?

Where can I find the 'GTR1 For dummy's' guide? All the links i've found are on decommissioned Fool pages.

Thanks,
Pete

@Wavedoc @lohill the Dropbox links are broken to the GTR1 for Dummies -
https://www.dropbox.com/scl/fi/e4a7bhapdd5bgcrodrl...

Can you restore / re-upload, please?

FC

One solution is to avoid screening for extremely high ROE. Instead look for above average ROE, and include a check on debt levels (increased debt will decrease equity).

After running a screen in gtr1, the field descriptions can be seen in the Command Translation.
equityq1.s is [SI Equity (Common) Q1]
ceqq1.c is [CPiT Com/Ord Equity - Total Q1]

ROA or ROIC could be used in place of ROE, but ROE backtests better in many screens. Possible measures for marginal expansion costs:

Equity = Assets - Liabilities
Assets
Invested Capital = Equity + Debt - Cash

ROA: pref(ratio(netinc12mq1d.s,assetsq1.s),ratio(ni12mq1d.c,atq1.c))

Cash: pref(plus(max(0,cashq1.s),max(0,stinvq1.s)),max(0,cheq1.c))
Debt: pref(plus(max(0,ltdebtq1.s),max(0,stdebtq1.s)),plus(max(0,dlttq1.c),max(0,dlcq1.c)))
Equity: pref(equityq1.s,ceqq1.c)
IC: linear(1,Equity,1,Debt,-1,Cash)
R: pref(gopinc12m.s,oeps12q1.c)
ROIC: if(IC>0,ratio(R,IC),R)

I can't help you with GTR1 for Dummies bur you mentioned my name so here is a link to GTR1 Helper in case anyone wants it,

PC Version: https://www.dropbox.com/s/0od442tu8lmwoy5/GTR1%20H...
Mac Version: https://www.dropbox.com/s/wd55uj0k429vfhy/GTR1%20H...

Larry

One solution is to avoid screening for extremely high ROE. Instead look for above average ROE, and include a check on debt levels (increased debt will decrease equity).

Thanks for that info.
Not backtested but looking at Fidelity Screener the change has some significance.
The obvious is sectors are more distributed with less IT.

        ROE_GMI (FH,Q)         AS OF 09:13 AM ET 12/07/2023 
      Criteria: (Name)               Criteria: (range)        Count  (%)
Security Type                  Common Stock                   7992   
Security Price                 No Filter                             
Company Headquarters Location  United States of America       5802   
Market Capitalization          Mega, Large, Medium & Small    1365   100%
Current Ratio (MRQ)            Very high, high & Medium        643   47%
Quick Ratio (MRQ)              Very high, high & Medium        548   40%
S&P GMI Financial Health       Very high, high                 159   12%
S&P GMI Quality                Very high, high                 125    9%
Return on Equity (TTM)         Very high, high & Medium         80    6%
Sector                         Exc. Financial & REIT            72    5%
Industry                       Industry                         72    5%
Sub-Industry                   Sub-Industry                     72    5%

  Current SoR Profile   CountIF()    %
        Sector              --      --
Industrials                 17     24%
Health Care                 17     24%
Materials                   12     17%
Information Technology      11     15%
Consumer Discretionary      4       6%
Energy                      4       6%
Communication Services      3       4%
Consumer Staples            3       4%
Utilities                   1       1%
Financials                  0       0%
REIT                        0       0%
Market Capitalization       --      --
Mega                        4       6%
Large                       11     15%
Medium                      24     33%
Small                       33     46%
                            --      --
Total Count                 72     100%

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