Patent ID: 7899725
Filing Date: 2011-03-01
Classification: G06Q

Abstract:
1. A computer-implemented method comprising: receiving, into a memory coupled to a processor, financial data about a company; preparing, with instructions stored in the memory and executed by the processor, a Statement of Total Economic Profit (TEP) comprising calculating with a data processor Earnings before Interest and Taxes (EBIT), Net Operating Profit After Tax (NOPAT), Weighted Average Cost of Capital (WACC), Economic Profit of Current Value (EPCV), Economic Profit of Future Value (EPFV), Total Economic Profit (TEP) at least at a beginning and ending of a reporting period based on the received financial data, preparing, with the instructions, a Statement of Enterprise Value (EV) comprising the EPCV, the WACC, and calculating with a data processor market value of equity, market value of debt, EPCV in perpetuity and enterprise value at least at the beginning and ending of a reporting period based on the received financial data, where the EPCV in perpetuity is calculated by dividing the EPFV by the WACC; preparing, with the instructions, a Statement of Total Return to Shareholders (TRS), comprising the EPCV in perpetuity and calculating with a data processor an unadjusted Total Return to Shareholders (unadjusted TRS) comprising a change in market value of equity plus dividends paid in the period based on the received financial data, wherein the Statement of TRS reflects that unadjusted TRS=((EPCV in perpetuity+Invested Capital−Capital subordinate to Debt+Future Value in Market Value of Equity)/The Number of Shares Outstanding)+Dividends per share, wherein the Future Value in Market Value of Equity=Market Value of Equity+Debt−NOPLAT/WACC−Excess Cash; adjusting, with the instructions, the unadjusted TRS and calculating an adjusted TRS, the adjusting comprising: determining an expected TRS value based on a predefined industry-based market index from the beginning of the reporting period to the ending of the reporting period based on a beta value for the company and deducting the expected TRS value from the unadjusted TRS value to obtain an adjusted TRS value, wherein the adjusted TRS=the unadjusted TRS−((percent change in the predefined industry-based market index)*(closing Beta)), and reporting the adjusted TRS in a financial statement; and displaying, in a graphical display coupled to the processor, Statements comprising the Statement of Total Economic Profit (TEP), the Statement of Enterprise Value (EV), and the Statement of Total Return to Shareholders (TRS) with Generally Accepted Accounting Principles (GAAP) financial reports to the financial services community.