Welcome to your new gem! In this directory, you'll find the files you need to be able to package up your Ruby library into a gem. Put your Ruby code in the file lib/medit. To experiment with that code, run bin/console for an interactive prompt.
There are a number of financial ratios that can be reviewed to gauge a company's overall financial health and to make a determination of the likelihood of the company continuing as a viable business. Four pillars of financial health that should be examined are liquidity, solvency, profitability, and operating efficiency. However, of the four, likely the best measurement of a company's health is the level of its profitability.
The purpose of this CLI, Medit, leverages data from the AlphaAdvantageAPI to output pillars or signals to display the true financial health of a publicly-traded company. User will be able to enter the companies stock symbol and Medit will return the companies:
- Industry -
- Liquidity: Current ratio = Current Assets / Current liabilities
- Solvency: D/E ratio = Total liabilities / Total Shareholders Equity
- OperatingMargin, Trailing Twelve Months (TTM): This metric indicates not only a company's basic operational profit margin after taking away the variable costs of producing and marketing the company's products or services, but it also provides an indication of how well the company's management controls costs.
- Profit margin: Companies can survive for years without being profitable, operating on the goodwill of creditors and investors, but to survive in the long run, a company must eventually maintain profitability.
Statistically, an Operating Margin higher than 15% is considered good.
- If the company a user enters has an Operating Margin TTM ≥
15%the terminal will output "#{company}, is currently in great operational health!". - If
11 - 14%then it will output "#{company}, has acceptable operational health but still needs improvement". - If
1 - 10%then the output would be "Proceed with caution! #{company} is struggling operationally". - Else it will print -
Not earning enough money from business operations
An example of a good profit margin will vary by industry. Generally typing a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.
- If the company a user enters profit margin is
20%≥ the terminal will output "#{company} is very profitable". - If the company a user enters profit margin is
10%≥ the terminal will output "#{company} has average profitability". - If the company a user enters profit margin is
5%≥ the terminal will output "#{company} has low profitability". - Else it will print -
Currently not enough money from business operations to be considered profitable
CLI app with object relationships. Uses HTTParty for API calls.
Swim Lane:
+---------------------------------------------------------+ +-------------------------------+
| Medit CLI | | AlphaAdvantageAPI |
| | | |
| +----------------------+ +---------------------+ | | +----------------------+ |
| | User Input: Stock | | | | | | | |
| | Symbol | | | | | | | |
| +----------------------+ | | | | | | |
| | | | | | | |
| | | | | | | |
| | +----------------+ | | | | | |
| | | |<----------| | |
| | | Industry | | | | Alpha | |
| | | | | | | Advantage | |
| | +----------------+ | | | | API | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| +----------------------+ | | | | | | |
| | | | | | | | | |
| | Company Financials |<--------------------------| | |
| |
| | | | | | | | | |
| +----------------------+ | | | | +----------------------+ |
| | | | | |
| +--------------------+ | +--------------------------------+
| | |
| | |
| +----------------+ +----------------+ | |
| | | | | | |
| | Liquidity | | Solvency | | |
| | | | | | |
| +----------------+ +----------------+ | |
| | |
| +----------------+ +----------------+ | |
| | | | | | |
| | Operating | | Profit Margin | | |
| | Margin | | | | |
| | | | | | |
| +----------------+ +----------------+ | |
| | |
+---------------------------------------------------------+ |
|
|
|
v
+---------------------------------------------------------+ |
| User Output | |
| | |
| +----------------------+ +----------------------+ | |
| | | | | | |
| | Company Information | | Financial Pillars | | |
| | | | | | |
| +----------------------+ +----------------------+ | |
| | |
| | |
+--------------------------------------------------------------+
Add this line to your application's Gemfile:
gem 'medit-RubyCLI'And then execute:
$ bundle install
Or install it yourself as:
$ gem install medit-RubyCLI
Type the following below to start the medit-Ruby CLI and begin your diagnosis:
./bin/medit
After checking out the repo, run bin/setup to install dependencies. You can also run bin/console for an interactive prompt that will allow you to experiment.
To install this gem onto your local machine, run bundle exec rake install. To release a new version, update the version number in version.rb, and then run bundle exec rake release, which will create a git tag for the version, push git commits and the created tag, and push the .gem file to rubygems.org.
Bug reports and pull requests are welcome on GitHub at https://github.com/[USERNAME]/medit. This project is intended to be a safe, welcoming space for collaboration, and contributors are expected to adhere to the code of conduct.
The gem is available as open source under the terms of the MIT License.
Everyone interacting in the Medit project's codebases, issue trackers, chat rooms and mailing lists is expected to follow the code of conduct.