Author: Exerica – exerica.com
Every financial analyst knows the profound tedium embodied in identifying and extracting the right data, and matching it to financial models. We spend days and months wading through 100-page company reports in search for numbers, cutting, pasting and pulling together disparate pieces of information.
We do this so that our financial models have verifiable data to run on, and are fuelled by information which has as much integrity and veracity as can be provided. Some of us enjoy this, but most of us don’t. After all, it is interpretation and analysis that inspires insight, not the repetitive drudgery of data search and entry.
Sometimes we compromise by focusing on what looks important, but a lot of relevant information can still get left out. We outsource and use third-party data providers even though they degrade analysis with uncertain quality headline numbers. Some of us go as far as concluding that financial analysis will be fully automated one day.
It won’t. There is a better path for financial research. This will see analysts generating ideas and creating, with machines not replacing them but providing all the necessary data to put their ideas into practice – in seconds, with reliability, integrity and veracity.
No matter what the data need, imagine that it could all be done with a mouse click in an Excel spreadsheet. From a geographical revenue breakdown, to a liability maturity profile across different debt classes, or even full time EBITDA series adjusted for leasing payments for an obscure private company. Or imagine, if you can, looking at whole markets to connect micro and macro factors across geographies, assessing aggregated cost structures of a range of shale gas companies, or calculating ESG metrics for UK companies – in a few minutes.
This is no longer ‘too good to be true’.
EXERICA is a new venture combining mathematicians, computer scientists and financial analysts, who have created a radical new solution to the age old problem of data extraction for financial modelling.
They have mastered extracting the original accounting structure from any random company report, and can structure and analyse virtually all financial data in any report. This means EXERICA sees not just a miasma of words and numbers but the original hierarchical structure of a company’s accounts. The resulting data structure can then be accurately linked with like structures from any other financial report – from one company across time, to a range of companies in a market sector. Every item can be matched against the same data in other reports with exactly the same analytical and accounting meaning.
EXERICA seeks to transform the financial research industry, cut costs and streamline processes. Like any new technology it will disrupt the industry, change the marketplace, and provide an edge for early adopters. Yet, EXERICA is about crafting positive change – empowering, inspiring, and freeing people to be at their best, rather than replacing them, liberating intellect from repetitive drudgery.
Join us for the future of financial research.