THE TIMES 100 : How This Section Was Put Together
This eighth edition of the Times 100, our annual inquiry into the performance of companies headquartered in California, was produced using data collected and analyzed by Market Guide Inc., a financial information services firm in Lake Success, N.Y.
Market Guide provided The Times with information on 759 California-based companies whose stock is publicly traded, relying on its databases, corporate 10-Q and 10-K reports, annual reports, a mail survey and phone calls to companies. In some charts as indicated, the data was provided by other companies or by government institutions.
The tables, created by The Times, were reviewed by Market Guide and Times editors and reporters. Criteria for the rankings were developed jointly by The Times and Market Guide.
Annual figures for this section may not match the latest fiscal year numbers reported by companies. If a company’s fiscal year did not end in November or December, 1994, or January, 1995, then the latest 12-month period ending in one of those months was used to calculate an annual figure.
For year-to-year comparisons, the 1994 figures are compared to the corresponding four quarters a year earlier.
A few companies have majority owned subsidiaries that are traded as separate entities. The financial results for these subsidiaries are presented independently as well as on a consolidated basis in the accounts of the parent companies. Some classes of shares are not followed by Market Guide and, in a small number of cases, companies were eliminated from certain charts as a result. Data is sometimes reported late and the section reflects the best available information at the time of publication.
Market Guide Inc., founded in 1983, compiles and sells comprehensive financial and descriptive information on about 7,000 public companies trading on the New York, American and Nasdaq stock exchanges. Its analysts comb through thousands of quarterly and annual SEC filings, news periodicals, news feeds and other sources to maintain its database. Market Guide markets its services to institutional, professional and individual investors through more than 25 financial information vendors. Most recently, it became the supplier for company reports on Prodigy’s on-line Strategic Investor service. Market Guide can be reached at 2001 Marcus Ave., Lake Success, N.Y. 11042-1011. Telephone (516) 327-2400.
General Criteria
All companies must be publicly traded on one of the major exchanges--New York, American or Nasdaq--and be headquartered in California.
Income is defined as income available to common stockholders from continuing operations and excludes extraordinary items and gains or losses from discontinued operations.
Sales exclude excise taxes, extraordinary income, revenue from discontinued operations and other income, such as interest. For banks and savings and loans, revenue equals the interest income. (Bank revenues are often measured in other ways.) For insurance firms, revenue equals the sum of earned premiums, realized gains or losses from investments, and net investment income. For all charts except the Return on Equity 100 and stock market performance charts, companies must have had at least $10 million in 1994 sales.
In a few cases, price and market capitalization information is incomplete because currently Market Guide tracks only the largest trading isusue of a company with multiple classes of common stock outstanding.
Section Notes
Return on equity measures the profit a company earns for every dollar common stockholders have invested in the firm. Return on equity is defined as income available to common shareholders divided by the average common shareholder’s equity. Income available to common shareholders is calculated by subtracting preferred dividends (if any) from income from continuing operations. The Times 100 table ranks companies by the average return on common equity for the past two years.
For the Return on Equity 100 table, companies must have met these criteria: publicly traded in 1994; sales in 1994 greater than $50 million; a profit from continuing operations in 1993 and 1994; and no negative common equity for each of the past two fiscal years.
Companies in the Top 25 and Bottom 25 in Absolute Profits must have been publicly traded in 1994. Just as the Top 25 in Absolute Profits ranks companies by dollar amount of profits from continuing operations, the Bottom 25 ranks companies by dollar amount of loss.
The Top Financial Institutions table shows assets and, where available, net income. This chart includes banks, savings and loans, and thrifts operating in California and does not have the same restrictions as other charts in the section.
Real estate investment trusts and limited partnerships were not eligible for inclusion in the profit charts because income for these companies, which is not taxed at the company level, is not comparable to after-tax income for corporations.
For the Charging Ahead and Falling Behind tables, a company’s stock price on April 13, 1995, and April 13, 1994, must have exceeded $2.
For the Lowest Priced and Highest Priced lists, a firm’s market value must have exceeded $100 million.
The Divvying It Up list of dividend yields ranks companies on the ratio of their current indicated annual dividend to their stock price. In most cases this figure is the latest quarterly dividend multiplied by four. There is no guarantee that the same amount of cash dividend will be declared for subsequent quarters this fiscal year or that a dividend will be declared every quarter. Dividends of real estate investment trusts and master limited partnerships often include a return of capital.
The Great Expectations list of analysts’ earnings estimates was provided by Zack’s Investment Research Inc. of Chicago.
The table of Top Performing Initial Public Offerings ranks companies that had their initial public common stock offering in 1994 by the stock price appreciation between the IPO date and April 13, 1995, and was supplied by IPO Crossroads in San Francisco.
For the Growth 100, sales growth can come either by generating new business or acquiring other firms.
California-headquartered companies are ranked by the number of employees worldwide at year-end, excluding consultants and contractors. Employment figures are estimates provided by the company. If year-end results were not available, employee estimates are from the latest completed quarter. The table excludes companies that are large employers in the state but are headquartered elsewhere.
