Applied Business Project 2 – Data Visualization

You MUST Submit your ABP-2 report as a PDF file

If you do not submit report as a PDF document, there will be a 10-point deduction!

Name: Farlin, Christian ([email protected])

Project: ABP-2 – Data Visualization

Task 1: ETL of Transactional Data

1.1. Extract (Header plus only the first 10 rows of your downloaded CSV datafile)

Date,Open,High,Low,Close,Adj Close,Volume

2020-10-09,203.059998,206.720001,201.509995,205.710007,201.323868,1282400

2020-10-12,206.399994,206.910004,203.520004,203.809998,199.464371,835500

2020-10-13,203.259995,205.000000,202.000000,203.160004,198.828247,571900

2020-10-14,203.399994,206.179993,203.070007,203.100006,198.769516,557900

2020-10-15,200.910004,204.160004,200.160004,203.789993,199.444809,548500

2020-10-16,204.770004,207.750000,204.720001,206.639999,202.234039,1219700

2020-10-19,206.580002,207.339996,202.009995,202.419998,198.104034,826300

2020-10-20,203.210007,206.649994,202.669998,203.440002,199.102280,712900

2020-10-21,203.720001,206.389999,202.630005,202.649994,198.329117,666400

2020-10-22,203.440002,204.300003,201.570007,201.720001,197.418945,1203000

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 Applied Business Project 2 – Data Visualization

1.2. Stock Price Summary Table (Based on Full Data Set)

Stock Price Summary- ITW (Illinois Tool Works Inc.)

(October 8, 2020 - October 7, 2021)
Daily
52-Week Daily Daily Daily Adjusted
Category Open High Low Close Daily Volume
Low 193.42 196.92 192.29 188.56 309,000
High 240.00 242.07 238.51 236.49 6,863,100
Range 46.58 45.15 46.22 47.93 6,554,100

Task 1.2- Stock Price Summary Data Table for Illinois Tool Works Inc.

(Source:https://finance.yahoo.com/quote/ITW/history?period1=1602201600&period2=1633651200&inte
rval=1d&filter=history&frequency=1d&includeAdjustedClose=true Referenced 10/8/2021)

1.3. Stock Price Summary Table Formulas

1.3.1. =MIN(ITW__9[Open])

1.3.2. =MAX(ITW__9[Open])

1.3.3. =M4-M3

*Worksheet labeled “ITW 9”. Table in columns L through Q and rows 1 through 5.

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1.4. Data Visualizations (Stock Trading Prices)

Illinois Tool Works Inc. (ITW) - Intraday Stock Trading Prices

252.29

242.29

232.29
Trading Price (US$)

222.29 Open
High
212.29
Low
202.29
Adj Close
192.29

182.29

Trading Date

Task 1.4 – Illinois Tool Works Inc. Intraday Stock Prices

(Source:https://finance.yahoo.com/quote/ITW/history?period1=1602201600&period2=1633651200&inte
rval=1d&filter=history&frequency=1d&includeAdjustedClose=true Referenced 10/8/2021)

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 Applied Business Project 2 – Data Visualization

1.5 Data Visualizations (Trading Volume)

Illinois Tool Works Inc. (ITW) - Number of Shares Traded

8,000,000

7,000,000

6,000,000
Trading Volume

5,000,000

4,000,000

3,000,000
Volume
2,000,000

1,000,000

Trading Date

Task 1.5 – Illinois Tool Works Traded Share Volume

(Source:https://finance.yahoo.com/quote/ITW/history?period1=1602201600&period2=1633651200&inte
rval=1d&filter=history&frequency=1d&includeAdjustedClose=true Referenced 10/8/2021)

1.6 Assessment of how Visualizations can inform an investor (150 words)

Analysts benefit from creating visualizations of trading data because of their usefulness
in informing potential investors on making decisions regarding the performance of
stocks that they may purchase or sell. NuWireInvestor reveals that visualizations of
stocks help analysts “illustrat[e] patterns…highlight multiple variables…reduc[e] complex
subjects…add customizability [and] eas[e] communication”, which help the potential
investor predict the future of the stock’s value and if profit will be made from buying and
selling said stock in the future. Charts can use pages upon pages worth of data to mine
into the result of said data. Hundreds of values on trading days can be compiled into an
easy-to-read chart that reveals that company A’s stock is decreasing in price and may be
worth buying, or that company B’s stock is increasing in value and that the investor
should sell his stocks for profit. Therefore, analysts benefit from creating charts because
they are more comprehensible to investors and helps them quickly understand the risks
and rewards prompted by the analyst’s presented opportunity to buy or sell stock.

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(Source: https://www.nuwireinvestor.com/can-data-visualization-help-maximize-investments/
Referenced 10/8/2021)

Task 2: Comparative Market and Financial Strength

2.1. Tabular Data Representation

Market and Financial Strength

Company Assets (K) Liabilities (K) Equity (K)
ITW 15,612,000 12,430,000 3,181,000
DOV 9,152,074 5,766,301 3,385,773
GE 253,452,000 216,378,000 35,552,000
Task 2.1 – Comparative Market and Financial Strength Analysis (shown in thousands, K)

(Source: https://finance.yahoo.com/ Referenced 10/8/2021)

2.2. Treemap Charts of financial data – your company

(Source: https://finance.yahoo.com/quote/ITW?p=ITW&.tsrc=fin-srch Referenced 10/8/2021)

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 Applied Business Project 2 – Data Visualization

2.3. Treemap Charts of financial data – a competitor

(Source: https://finance.yahoo.com/quote/DOV?p=DOV&.tsrc=fin-srch Referenced 10/8/2021)

2.4. Treemap Charts of financial data – a company ourside your industry

(Source: https://finance.yahoo.com/quote/GE?p=GE&.tsrc=fin-srch Referenced 10/8/2021)

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2.5 Value of a Treemap Chart in Investment Analysis (150 words)

Treemap charts are beneficial visualizations of the financial information of companies

because they inform a potential investor of the preparedness and feasibility of specific
companies to pay off short and long-term liabilities. The investor can then evaluate companies
based off their ability to stave off bankruptcy by comparing their assets to their liabilities. Thus,
the investor can use a treemap chart of a company to determine if his investment in the form of
stock could be worthless if the company runs out of assets while trying to pay off its short-term
liabilities. Additionally, an investor can determine if his invested shares retain value after the
company repays all liabilities through its visual representation of equity. By comparing the
assets, liabilities, and equity of competing companies, the treemap chart informs a potential
investor on the likelihood that the companies can survive financial hardships and retain the
value of his investments by clearly showing the amount of assets and liabilities that the
companies have through easy-to-comprehend visuals.

Task 3: Profiling Corporate Sustainability

3.1. Tabular Data for Sustainability Visualization

Risk Factor ITW DOV GE

Environment (ERS) 4.4 7.8 15.6
Social (SRS) 9.2 14.1 15.7
Governance (GRS) 6.4 6.4 12
Task 3.1 – Sustainanalytics ESG Rating Comparison

(Source: https://finance.yahoo.com/ Referenced 10/8/2021)

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 Applied Business Project 2 – Data Visualization

3.2. Sustainability Visualization (Radar Chart)

Sustainanalytics ESG Ratings

ITW DOV GE

Environment (ERS)
20
15
10
5
0

Governance (GRS) Social (SRS)

Task 3.2 – Sustainanalytics ESG Ratings Comparison Visualization

(Source: https://finance.yahoo.com/ Referenced 10/8/2021)

3.3. Sustainability Assessment (150 words)

Investors use Sustainalytics’ ESG Ratings to measure if their invested company’s level of
commitment to sustainable practices and their management of ESG risks will cause his
investments to appreciate or depreciate in the future. If the investor’s “company were to receive
a poor rating from one ESG data provider, [his] stock may be considered an ‘unsustainable
asset’”, meaning that the company would both lose most of its investors and have the value of
their stock plummet (Stopps). The investor can use sustainalytics to determine if their invested
company is operating at “significant controversy levels”, meaning that the company’s lack of
focus on sustainable practices will likely result in public backlash. The company would likely face
expensive lawsuits, decreasing stock values, and decreases in revenue. The company would
likely exhaust most of its assets through their response to these obstacles, meaning that their
liabilities could force the company to operate at a loss. Thus, an investor can use
sustainanalytics to determine if a company’s actions make investment profitable.

(Source: https://simply-sustainable.co.uk/insights/why-esg-ratings-matter-and-how-companies-
use-them Referenced 10/8/2021)

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Task 4: Assessing your stock the Warren Buffet Way

4.1. Selection of Criteria and Visualization Chart Type

(4.1a) Task 4 Criterion 4b: Are earnings strong and do they show an upward trend?

Buffett looks for companies with strong, consistent, and expanding earnings. We screen for
companies with seven-year earnings per share growth greater than 75% of all firms and
consistent earnings (3 years).

(4.1b) I will use two visualizations: A 2-D Line Chart and a Clustered Column Chart.

4.2. Visualization Assessment (150 words)

My visualizations will inform an investor about the trend of Illinois Tool Works’ (ITW)
earnings per share by showing the rate of change of the company’s earnings per share in
comparison to the Standard and Poor’s 500 (S&P 500) earnings per share performance average
over the past seven years through a 2-D line chart and by directly comparing ITW with S&P
500’s EPS through a clustered column chart. Illinois Tool Works Inc. is not an investment-worthy
company when viewed through Warren Buffet’s criterion for EPS. Buffet stipulates that an
investment-worthy company has “strong, consistent, and expanding earnings” (ABP2), and
Illinois Tool Works’ EPS have been inconsistently fluctuating. In 2019 alone, ITW’s EPS decreased
14.34%. Buffet also asserts that investment-worthy companies have “seven-year earnings per
share growth greater than 75% of all firms” (ABP2). Illinois Tool Works’ EPS is below the top 500
companies’ EPS over the past seven years. Therefore, investing in Illinois Tool Works Inc. is not
recommended since it does not align with Warren Buffet’s earnings per share criterion.

(Sources: https://d2l.arizona.edu/d2l/le/content/1065105/viewContent/11523352/View &

https://www.macrotrends.net/stocks/charts/ITW/illinois-tool-works/eps-earnings-per-share-diluted &
https://ycharts.com/indicators/sp_500_eps (ABP2 Guidelines) Referenced 10/8/2021)

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4.3. Buffet Assessment Data Visualization

Earnings Per Share (U.S. Dollar) ITW and S&P 500 Earnings Per Share (EPS) Trends
$40.00
$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00

Fiscal Year

ITW EPS S&P 500 EPS

Task 4.3 – Buffet Assessment Data Visualization of Illinois Tool Works Inc. (2-D Line Chart)

(Sources: https://www.macrotrends.net/stocks/charts/ITW/illinois-tool-works/eps-earnings-per-share-
diluted & https://ycharts.com/indicators/sp_500_eps Referenced 10/8/2021)

ITW and S&P 500 Earnings Per Share (EPS) Comparison

$40.00
Earnings Per Share (U.S. Dollar)

$35.00
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00

Fiscal Year

ITW EPS S&P 500 EPS

Task 4.3 – Buffet Assessment Data Visualization of Illinois Tool Works Inc. (Clustered Column
Chart)

(Source: https://www.macrotrends.net/stocks/charts/ITW/illinois-tool-works/eps-earnings-per-share-
diluted & https://ycharts.com/indicators/sp_500_eps Referenced 10/8/2021)

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