New Constructs reviews every detail of a company's annual 10K and
10Q reports to "to deliver quality fundamental analysis at scale"
(Wang & Thomas, 2021). I believe that eventually Microsoft would
be willing to use New Constructs to measure economic earnings and
profitability to compare to those that are their competition like Apple
and Google. Finding data points from the footnotes and the MD&A
of Microsoft's financial annual reports would help analysts and the
Microsoft accounting team make the appropriate balance sheet and
income statement adjustment's. The adjustments that are extracted
and compiled from New Constructs can be over-ridden if necessary,
with the idea nd hopes that company's are able to make better
informed business decision's. I think that it is inevitable that most
companies would use this new technology in the future, because
human analysts can only sift through so much data at any given
moment or day. A computer program designed for sifting through
mountains of data and picking only the relevant quantitative points
could be a great solution to employees wasting time on analyzing
mountains of data.
Reference:
Wang, C., & Thomas, K. (2021, June). New Constructs: Disrupting
Fundamental Analysis with Robo-Analysts (No. 9–118–068). Harvard
Business
School. https://learn.snhu.edu/d2l/le/content/1114809/viewConten
t/18955851/View
