If you're an investor or analyst of a public company, you'll want to get your hands on the revenue breakdown for each segment the company operates in. This information is essential in understanding how well a company is performing and where it's making money. In this guide, we'll show you how to get revenue breakdowns for any public company.
What is segment revenue breakdown, and why is it important for investors to track?
A segment revenue segments breakdown is a report that details the revenue generated by each business segment of a company. This information is essential for investors to track because it allows them to see how well a company is performing in each of its businesses.
For example, Apple Inc. (AAPL) has three main business segments: iPhone, iPad, Mac, Services, Wearables and Home Accessories. If you're an investor in Apple, you'll want to know how each of these businesses is performing. Are sales of the iPhone growing or shrinking? What about the iPad and Mac?
The segment revenue breakdown will give you this information. It will show you how much revenue each business segment is generating and whether that revenue is growing or decreasing over time.
How to get segment revenue breakdowns for public companies?
There are two ways to get segment revenue segments breakdowns for public companies:
- Financial reports
- Company websites
- Stock analysis tools
Financial reports
The typical way to get segment revenue breakdowns for public companies is to look at their financial reports. This is because all public companies are required to file financial reports with the Securities and Exchange Commission (SEC).
These reports will contain segment revenue information. You can find them on the SEC's website or on the company's investor relations website.
Company websites
Another way to get segment revenue breakdowns for public companies is to look at their websites. Many companies will disclose this information on their website, usually in their investor relations section.
If you can't find the segment revenue information you're looking for on a company's website, you can try contacting the company directly. They may be able to provide you with the information you need.
Stock analysis tools
Often the best option is to use a stock analysis tool like Wisesheets. With Wisesheets, you can get segment and geographic revenue segment breakdowns historically for many years at once. Whereas the other methods only allow you to see a few years or quarters of data at the time Wisesheets, you can get this information going back up to 10 years. Better yet, you can get all this information directly on your Excel or Google Sheet spreadsheet using the WISE function like this:
=WISE("ticker", "segment revenues", year/s).
For example, to get Apple's segment revenue from 2018 to 2021, you would use the following formula:
=WISE("AAPL", "segment revenues", {2021,2020,2019})
As you can see, this is a great way to get segment revenue information for public companies.
What to look for when analyzing segment revenue breakdowns?
There are a few things you'll want to look for when analyzing segment revenue breakdowns:
- Growth rates
- Margins
- Business mix
Growth rates
One of the most important things to look for is the growth rate of each segment. In addition, you'll want to see if the revenue from each segment is growing or shrinking.
Margins
Another thing to look for is the margin of each segment. This is the revenue from each segment as a percentage of the total revenue.
Business mix
Finally, you'll want to look at the business mix. This is the percentage of revenue generated by each segment. So, for example, if a company has three segments and one generates 80% of the revenue, that's a very different business mix than if all three segments generate equal revenue.
Example of how to use segment revenue breakdowns in investment decision-making
Let's say you're looking at two companies: Company A and Company B. Both companies are in the same industry, and both have similar revenue.
However, when you look at their segment revenue breakdowns, you see a big difference. Company A has all its revenue coming from one business segment, while company B has its revenue coming from three different segments.
If you're investing in Company A, you're putting all your eggs in one basket. So if that business segment goes bad, the company's revenue and the stock price will go down with it. However, if you're investing in company B, you're diversified across three different segments. So even if one of them goes bad, the other two can offset the losses.
In this example, you would probably want to invest in company B because it's a safer investment. But this is just one example. There are many factors to consider when making investment decisions and segment revenue breakdowns is just one of them.
Conclusion
There are many ways to get revenue segments breakdowns for public companies. The best way is to use a stock analysis tool like Wisesheets. With Wisesheets, you can get segment revenue information going back up to 10 years. You can also get all this information directly on your Excel or Google Sheets spreadsheet using the WISE function.
When analyzing segment revenue breakdowns, you'll want to look for growth rates, margins, and business mix.
Investing in companies with diversified revenue streams is generally a safer investment than investing in companies with all their revenue coming from one business segment.
To your investment success!
