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Compustat

Compustat is a database developed and maintained by , offering standardized , , and statistical information on over 80,000 active and inactive publicly traded companies worldwide. Launched in 1962 as a division of Standard & Poor's (now ), it provides historical coverage dating back to 1950 for North American firms, with point-in-time snapshots available from 1987 onward. The database encompasses more than 3,000 financial items, including detailed income statements, balance sheets, cash flow statements, and derived ratios, delivered on annual, quarterly, and monthly bases. It covers 12 major industries such as consumer goods, , and financials, with enhanced segment reporting and point-in-time data particularly robust for North American entities. Compustat also includes daily and monthly market metrics like stock prices, dividends, and corporate actions, sourced from public filings, company reports, and local data feeds. Widely utilized in academic research, investment analysis, and , Compustat is accessible through platforms like Wharton Research Data Services (WRDS), enabling users to link its fundamentals with other datasets such as CRSP for comprehensive studies. Its standardized format ensures consistency across global markets, though coverage varies by region, with the deepest historical detail for U.S. and Canadian companies.

Overview

Definition and Purpose

Compustat is a comprehensive database providing standardized financial, statistical, and information on both active and inactive publicly traded companies worldwide. It aggregates data from diverse sources into a consistent format, facilitating reliable cross-company and cross-country comparisons essential for in-depth . The primary purpose of Compustat is to enable professionals, , and analysts to conduct standardized evaluations of company performance, valuation, and trends through access to deep historical datasets. By offering point-in-time snapshots and preserving original data values, it supports accurate , quantitative modeling, and while mitigating biases such as look-ahead and restatement effects. This focus on temporal accuracy ensures that historical analyses reflect the information available at specific past dates, enhancing the integrity of longitudinal studies in and . Key features of Compustat include extensive coverage of fundamental , such as income statements, balance sheets, and reports, alongside over 5,000 data items including ratios and segment data. The database emphasizes historical consistency by standardizing reporting across varying standards and including data for inactive entities to prevent in performance assessments. With records dating back to 1950 for annual data and 1962 for interim reports, it provides a robust foundation for trend analysis over decades. Compustat handles data for over 80,000 active and inactive securities. This broad scope ensures comprehensive representation of major economic actors, from North American firms to entities across multiple industries.

Ownership and Operations

Compustat was launched by Standard & Poor's in as a pioneering database providing prices and dividends data for thousands of companies. Over time, it became integrated into the broader S&P ecosystem, and following corporate restructurings, it is now owned and operated as part of S&P Global Market Intelligence, a key division of Inc., the parent company focused on financial information services. This ownership structure positions Compustat within a global enterprise that emphasizes data-driven insights for financial markets. Operationally, Compustat functions as a specialized provider within S&P Global's Market Intelligence segment, with core activities centered on the collection, standardization, and distribution of financial and . The process involves gathering information from primary sources such as regulatory filings—including U.S. Securities and Exchange Commission () Forms 10-K and 10-Q—along with company annual reports, press releases, and feeds from exchanges. Once collected, the undergoes rigorous cleaning and normalization to ensure consistency across different reporting standards, eliminating discrepancies like varying accounting practices or alignments, which enables reliable cross-company and cross-country comparisons. At present, Compustat operates on a global scale, delivering standardized and for over 80,000 active and inactive companies, primarily serving institutional clients such as firms, academic researchers, and corporations through subscription-based access platforms. This model supports seamless integration with other tools, like Capital IQ, for enhanced analytical workflows, while maintaining a focus on timely updates and point-in-time historical records to meet diverse user needs in and analysis.

History

Founding and Early Years

Compustat was launched in 1964 by Standard & Poor's, marking one of the earliest efforts to create a computerized database for financial and market information on publicly traded companies. The database was designed to standardize and automate the compilation of key financial data, drawing from filings and other sources to provide reliable, comparable information for analysts and investors. Its initial focus was on U.S. companies, offering digitized access to essential metrics that previously required manual extraction from paper reports and ledgers. The early purpose of Compustat centered on delivering computerized access to stock prices, dividends, and basic financial statements, enabling faster and more accurate analysis in an era dominated by manual processes. By providing this data in a structured electronic format, it addressed the growing need for efficiency among financial professionals as computing technology emerged in the 1960s. This shift facilitated quantitative analysis and portfolio management, laying groundwork for modern financial research tools. Key milestones in Compustat's founding years included initial coverage of U.S. industrial companies with annual data dating back to 1950, allowing historical analysis of financial performance. The database provides quarterly data starting from the first quarter of 1962 for enhanced timeliness. In the late 1960s, annual industrial files were further developed to support detailed sector-specific insights, solidifying Compustat's role in empirical financial studies. Compustat pioneered electronic data distribution in the sector, influencing the broader transition from paper-based records to digital systems and enabling widespread adoption of computer-assisted .

Expansion and Acquisitions

During the 1980s and 1990s, Compustat significantly expanded its scope to include global data files, with international company coverage beginning in to provide financial and market information beyond . This growth also involved establishing linkages with the Center for Research in Security Prices (CRSP) database, creating merged datasets that combined Compustat's fundamental financial data with CRSP's and records for enhanced historical analysis. To mitigate in applications, Compustat extended its coverage to inactive companies, ensuring comprehensive representation of delisted or merged entities alongside active ones. In the , Compustat integrated into the S&P Capital IQ platform following McGraw-Hill's acquisition of Capital IQ for approximately $200 million, which merged the two to offer a unified environment for detailed and data, , and screening tools. Additionally, point-in-time were launched in 1987, providing accurate historical snapshots of financial data as reported at specific dates to avoid look-ahead bias in back-testing and analysis. Key corporate developments continued with the 2015 acquisition of SNL Financial by McGraw Hill Financial for $2.225 billion in cash, which enhanced Compustat's offerings with sector-specific data on banking, insurance, and energy industries, integrating SNL's intelligence into the broader platform. In 2016, McGraw Hill Financial rebranded and spun off as Inc., refocusing the company on financial information services and solidifying Compustat's role within S&P Global Market Intelligence. As of , the Compustat database encompassed over 80,000 active and inactive entities, with historical extending back to for North American companies and supporting global coverage across more than 80 countries.

Data

Financial and Accounting

Compustat's financial and accounting primarily encompasses standardized income statements, balance sheets, cash flow statements, and supplemental items such as pensions and business segments. These categories include over 3,000 standardized annual, quarterly, year-to-date, and semi-annual financial items, with more than 340 annual variables and 120 quarterly variables available for analysis. The draws from regulatory filings like 10-K and 10-Q reports, providing comprehensive coverage of , expenses, assets, liabilities, , and cash flows for companies. The standardization process normalizes data to U.S. Generally Accepted Principles () where feasible, involving restatements to ensure consistency across periods and firms, such as adjusting for changes or prior-period errors. This transformation aligns disparate practices, enabling cross-company and cross-period comparability, and incorporates derived metrics like financial ratios (e.g., ) and multiples (e.g., price-to-earnings). Unlike as-filed data from sources, Compustat's version applies industry-specific adjustments and reconciliations to enhance analytical utility. A distinctive feature is the availability of point-in-time financials starting from 1987, which preserve data as originally filed to avoid from subsequent restatements or amendments. This approach is particularly valuable for event studies and , capturing the information available to investors at specific historical moments. Additionally, the database accounts for by providing restated historicals that integrate acquired entities' data, such as through pooling-of-interests methods, ensuring continuity in financial series post-transaction. Annual financial data extends back to 1950 for U.S. and Canadian firms, covering over 50,000 active and inactive entities, while quarterly data begins around 1962. This long historical span includes flow-of-funds statements detailing sources and uses of , alongside supplemental adjustments for industry-specific nuances like regulatory requirements in banking or utilities.

Market and Statistical Data

Compustat's Market and Statistical Data encompasses dynamic market metrics and derived statistical measures for active and inactive publicly traded companies, emphasizing price movements, trading activity, and risk indicators. Core items include stock prices (high, low, and closing values, adjusted for splits and dividends), trading volumes (daily and monthly shares traded), dividends (common and preferred per share, with ex-dates and indicated annual rates), stock splits (cumulative adjustment factors), and returns (price and total returns incorporating dividends). Statistical elements feature (calculated as shares outstanding multiplied by closing price), (measuring stock volatility relative to the market), and index affiliations (such as membership in the , MidCap 400, or SmallCap 600). The historical coverage provides monthly market data from 1962 onward, with annual data extending to 1950 for select items like prices and dividends; total return calculations account for dividends and corporate actions such as splits to ensure accurate performance tracking over time. This depth supports longitudinal analyses of market behavior and firm valuation. A distinctive feature is the linkage to external datasets, particularly the CRSP database for U.S. equities, achieved through shared identifiers like GVKEY (Compustat's firm key), PERMNO/PERMCO (CRSP's permanent numbers), and codes, enabling seamless integration for combined financial-market research. Additionally, the inclusion of delisted securities in research files and inactive company records allows for survivorship-bias-free studies of historical returns and performance. Global securities pricing data spans over 90,000 entities across more than 180 exchanges in developed and emerging markets, with adjustments for local currencies and trading venues. Proprietary indices, including the S&P 1500 and GICS-based classifications, provide benchmarks for sector and market comparisons. Integrated qualitative elements, such as business descriptions for companies and executive details from affiliated S&P Capital IQ sources, complement the quantitative metrics for contextual analysis.

Products and Access

Core Database Products

Compustat's core database products provide standardized financial, market, and statistical data for and research. The primary offerings include Compustat , which covers fundamentals and for U.S. and Canadian companies dating back to 1950 for annual data and 1962 for quarterly data, with standardized historical records from 1979 onward. Compustat Global extends this coverage internationally, encompassing over 5,000 data items on publicly traded companies across more than 80 countries, representing a significant portion of global . Additionally, Compustat Point-in-Time delivers historical snapshots to enable accurate and avoid look-ahead bias, with North American point-in-time data available from 1987. Variants of these databases cater to specialized needs, such as the and files, which offer annual and quarterly data with supplemental details including business segments, debt schedules, pension information, and industry-specific metrics. The Merged files integrate Compustat fundamentals with CRSP data, providing a unified for linking corporate financials to historical pricing, returns, and corporate actions. BackData extends historical coverage for recreating past investment scenarios, particularly useful for long-term performance analysis. Key features across these products include standardized formats that support bulk downloads and integration into analytical workflows, along with data on estimates, business segments, and ownership structures to facilitate comprehensive entity analysis. The , a central component, covers over 80,000 active and inactive entities with more than 3,000 standardized financial items from income statements, balance sheets, and statements, updated quarterly to reflect the latest filings. These elements ensure consistency and reliability for cross-company comparisons while mitigating issues like through robust entity management.

Delivery and Integration Tools

Compustat data is primarily accessed through subscription-based s, including Wharton Research Data Services (WRDS) for academic and research users, the S&P Capital IQ for professional , and direct feeds such as Xpressfeed for automated data delivery. WRDS provides a centralized for querying and downloading Compustat datasets, while S&P Capital IQ integrates Compustat fundamentals into its broader analytics environment. Xpressfeed enables real-time and batch feeds of Compustat data, supporting integration into proprietary systems without manual intervention. Key tools for interacting with Compustat include Compustat Research Insight, an online querying application that allows users to build custom datasets through point-and-click interfaces or SQL-like queries. Excel add-ins, available via S&P Capital IQ and WRDS, facilitate direct pulls into spreadsheets using functions like =CIQ() for financial metrics. For advanced users, kits (SDKs) and support custom integrations, while bulk download options permit exporting large volumes of in or ASCII formats through tools like the Marketplace Extract. Integration features emphasize seamless linking across datasets using historical identifiers such as GVKEY (a unique company key) and (Committee on Uniform Securities Identification Procedures numbers), which maintain continuity despite corporate changes like mergers. Compustat data is compatible with major analysis environments, including for statistical processing, via libraries like wrds and , and through packages such as WRDStools, enabling scripted workflows for . A distinctive aspect is point-in-time delivery, which provides as-reported historical views to ensure regulatory compliance and avoid look-ahead bias in . As of 2025, Compustat supports cloud-based access through WRDS and S&P Marketplace, allowing scalable, remote data handling without local infrastructure.

Applications and Usage

In Financial Analysis

Compustat plays a central role in professional by providing standardized , ratios, and that enable practitioners to evaluate company performance and make informed decisions. Investment professionals leverage its extensive historical database, dating back to 1950 for annual data, to conduct stock screening, identifying companies based on specific financial characteristics such as growth or levels. This capability allows asset managers and analysts to filter thousands of global securities efficiently, supporting the development of targeted strategies. In valuation modeling, Compustat supplies critical inputs for (DCF) analyses and comparable company valuations through point-in-time financial snapshots, ratios, and multiples like price-to-earnings or enterprise value-to-EBITDA. Peer is another primary use, where analysts compare a company's metrics against norms or competitors using Compustat's standardized , which adjusts for differences to ensure across sectors. For (M&A) due diligence, professionals rely on its financial ratios, details, and histories to assess target viability and synergies, often integrating this quantitative with qualitative assessments. Key applications extend to portfolio management, where asset managers use Compustat's and total return calculations to optimize allocations and backtest strategies across economic cycles. Bankers employ it for credit analysis, evaluating leverage ratios and stability from historical financials to inform lending decisions. In equity and research, the database's pricing, , and return data facilitate and . Institutional investors, for instance, screen for undervalued using valuation multiples derived from Compustat, enabling quantitative approaches that cover approximately 98% of global . Compustat's integration with platforms like S&P Capital IQ enhances its utility by combining robust quantitative data with qualitative insights, such as management profiles, allowing analysts to perform holistic without switching tools. This seamless connectivity supports global decision-making in quantitative strategies, powering everything from to strategic advisory services.

In Academic and Research Contexts

Compustat has become a cornerstone of in and , primarily accessed by scholars through the Wharton Research Data Services (WRDS) platform, which facilitates large-scale of firm-level . As the de facto standard for , it underpins studies exploring corporate behaviors, including decisions—such as choices in response to —and earnings management practices that manipulate reported financials to meet benchmarks. Its comprehensive coverage enables researchers to construct robust, representative samples for testing theoretical models in and . Key methodologies in academic work leverage Compustat's depth for event studies, which assess reactions to corporate announcements, and long-horizon return analyses that track abnormal performance over extended periods. These often involve merging Compustat fundamentals with CRSP stock price data via the CRSP/Compustat Merged database, allowing precise alignment of metrics with market outcomes. Additionally, Compustat supports survivorship-bias-free samples by including historical records for delisted firms, essential for unbiased evaluations of long-term firm performance and avoiding overestimation of returns in portfolio studies. The database's historical span, extending back to the for U.S. firms, empowers PhD-level investigations into longitudinal trends, such as evolving structures or macroeconomic impacts on corporations. subscriptions to WRDS grant broad access, fostering its integration into graduate curricula and enabling reproducible empirical work across institutions. Compustat data features in many highly cited papers, with individual variables referenced in dozens to hundreds of studies, reflecting its foundational role in advancing scholarly understanding. Representative examples illustrate its versatility: researchers have matched Compustat records to U.S. from onward to quantify firm outputs and their links to financial health, revealing patterns in R&D and . Similarly, analyses of incorporation effects use Compustat to compare firm outcomes—like quality and valuation—across jurisdictions, demonstrating how legal environments influence reincorporation decisions and performance.

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