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financial year defination of COMPUSTAT fyear
Posted: 01 August 2012 02:33 PM   [ Ignore ]
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http://web.utk.edu/~prdaves/Computerhelp/COMPUSTAT/helpful_hints_for_compustat.htm

  In order to find data which corresponds to a given year, you need to know the naming convention that Compustat follows.  In a nutshell, Compustat assigns the to the data year the year in which the fiscal year begins if the fiscal year end is from January through May.  If the fiscal year end is from June through December, then the data year is the year in which the fiscal year ends.  One way to remember it (except for in June) is that the data year is the year in which the majority of the months in the fiscal year fall.

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Zenghui
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Posted: 01 August 2012 02:49 PM   [ Ignore ]   [ # 1 ]
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a shortcut for remembering this: fyear is the last year with 6 or more months in it.

last month of fiscal year => fyear
jan-may 2012 => fyear: 2011
jun-dec 2012 => fyear: 2012

years ending in june could go both ways, since 6 month each in two calendar years; it goes in the last year (june 2012 end of year is fiscal 2012; ending may 2012 is fiscal 2011, because 7 months were in 2011)

best,

Joost

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Posted: 01 August 2012 03:27 PM   [ Ignore ]   [ # 2 ]
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Joost,

Thanks for the clearing up this variable!

Is this definition universal for all WRDs database?

Thanks again,

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Posted: 01 August 2012 03:34 PM   [ Ignore ]   [ # 3 ]
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hi Zenghui,

I am not sure how common this definition is..

best regards,

Joost

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Posted: 01 August 2012 03:42 PM   [ Ignore ]   [ # 4 ]
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Joost,

i would guess the USA companies define the fiscal year similar with Compustat, since Compustat is based on 10Ks….

I could be totally wrong here…

smile

thanks,
Zenghui

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Posted: 01 August 2012 06:02 PM   [ Ignore ]   [ # 5 ]
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smile

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Posted: 18 August 2012 09:05 PM   [ Ignore ]   [ # 6 ]
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Any fiscal year that ends in June through December in calendar year X is said to be fiscal year X also, and that is intuitively obvious.  Now the convention of taking any fiscal year that ends in Jan through May of calendar year X and labelling it as fiscal year X-1 may not seem obvious, but it is consistent with the US Internal Revenue Service labelling of tax years.

In general this is analogous to saying that the fiscal year identity should match the calendar year which holds the most months of the fiscal year.  But in the case of a tie (fiscal year ends in June), then identify using the calendar year in which the FY actually ends.

So a Compustat annual record with fiscal year end DATADATE=31MAY2004 should have an FYR value of 5 (for May) and a FYEAR value of 2003 (as per the above).  But DATADATE=30JUN2004 ==> FYR=6 and FYEAR=2004.

Now let’s say you have a given DATE and you know the FYR for a given company, and you want to get the DATADATE at the end of the fiscal year.  Well, just as you can use the INTNX function to get the end of a calendar year, as per

end_of_year=intnx('year',date,0,'end'

you can use intnx for fiscal years too, by usng SAS’s convention of date-interval-offets (WRDS has an e-learning session on SAS dates that includes this).  For a fiscal year ending in, say, SEPTEMBER (fyr=9), you could do this:

end_of_fiscal_year=intnx('year.10',date,0,'end'

SAS uses the offest expression “year.10” to describe years that begins in the 10th month (which is the same as a year that ends in the 9th month).  So the statement above takes DATE and finds the end date of the fiscal year containing DATE.

So if FYR=1 then you use “year.2”, for FYR=2 use “year.3” .... through FYR=11 ==> use “year.11”.  You could use FYR+1, except that for FYR=12, you would end up trying “year.13” and would break the INTNX function.  So instead you can do this (the “cats” function says to strip trailng and leading blanks from each argumante, and then concatenate them):

interval=cats('year.',mod(fyr,12)+1); 

which says:
  1. Divide FYR by 12 and get the remainder (the “modulo” funtion),  (note for FYR=12 it yields a zero)
  2. Then add one (so for FYR12 you would have “year.1”).

then

fiscal_year_end_date=intnxcats('year.',mod(fyr,12)+1DATE0'END'); 

BTW, getting from a DATADATE to an FYR is easy:
  FYR=month(DATADATE);  ** If DATADATE is the last date of the fiscal yar **;

And getting from DATADATE to FYEAR is also easy:

if month(datadate)<=5 then FYEAR=year(datadate)-1;
else 
FYEAR=year(datadate); 

Or more compactly:

FYEARyear(intnx('month',datadate,-5,'end')); 

which is like saying getting the fiscal year for a datadate is like getting the calendar year of 5 months prior.

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Posted: 06 September 2012 09:08 AM   [ Ignore ]   [ # 7 ]
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Very informative!
Thanks, sassafras!!!

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Posted: 06 September 2012 09:45 AM   [ Ignore ]   [ # 8 ]
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additional informaiton on the vairable Datadate definition.

Datadate is defined in the xpressfeed as the following:
—————————————
This item is the reporting date for a data record in Xpressfeed; for example, for annual company data items this item equals the fiscal period end date. For security level data this item equals the trade date for high, low, close prices. This item is a key field used to retrieve specific data records from the database.
————————————-

reporting date === fiscal period end date here.

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Posted: 12 February 2014 11:30 PM   [ Ignore ]   [ # 9 ]
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Hello Zenghui and Joost,

Can I ask a question related to this topic? I use Compustat quarterly data. I noticed that some firms changed their fiscal year end and therefore there would be the cases in which there are multiple observations for each firm-data year-data quarter (not fiscal year-fiscal quarter). I am wondering how do you guys deal with these cases? Use the data reported after changing the fiscal year end or use some other methods? Thank you very much!!!

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Posted: 13 February 2014 07:41 AM   [ Ignore ]   [ # 10 ]
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hi,

At the time of writing the examples in resources, firms with change in fyr were double. Lately, I didn’t come across these firms anymore, so it could be the case it has been taken care of in Compustat.

If it is not the case (still double records), the cleanest way is to drop the ‘old’ fiscal year in the year of the fiscal year change. The less-clean way is to randomly drop one (this may not be acceptable if you collect stock return or something at the end of the fiscal year). In the example in resources I drop the firm-year altogether (least-clean). smile

best regards,

Joost

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Posted: 13 February 2014 10:27 AM   [ Ignore ]   [ # 11 ]
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Thank you very much! I will try the methods you mentioned and see whether there are changes in results!

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Posted: 13 February 2014 10:31 AM   [ Ignore ]   [ # 12 ]
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sounds good! smile feel free to post your findings here!

best regards,

Joost

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Posted: 27 March 2014 12:05 PM   [ Ignore ]   [ # 13 ]
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What is the practical meaning of this difference? Does it matter if we run regressions by fiscal year or calendar year?

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Posted: 27 March 2014 06:30 PM   [ Ignore ]   [ # 14 ]
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hi,

Sometimes you need to know when the year ended when matching Compustat with other datasets.
Currently, Compustat Fundamental Annual has the ‘datadate’ field (which is approx the end of fiscal year date), so that makes things easier. The ‘legacy’ version of Funda did not have this field, so you had to ‘figure out’ the end of year yourself (with the month of fiscal year end and fiscal year).

best regards,

Joost

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Posted: 23 June 2016 04:58 PM   [ Ignore ]   [ # 15 ]
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Hi Joost,

I am still a little bit confused about the fiscal year, calendar year and datadate in Compustat.

When I tried to get the calendar year for a dataset in Compustat, I used year (datadate) to get calendar year. But my professor told me if I want to get calendar year, I should use fiscal year+1 if fiscal year end is between January and May, and calendar year = fiscal year if fiscal year end is between June and December.  I tried what he told me. But it seems not right. For example:

fiscal year end is May,
datadate         fiscal year         calendar year (using datadate)  calendar year ( if I do as fyear+1):
19980228         1997               1998                               1998
19980531         1997               1998                               1998
19980831         1998               1998                               1999
19981130         1998               1998                               1999

calendar year 1999 for the 98Q1 and 98Q2 does not seem right? Can you help me clarify this?
Thank you very much!

Winnie

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