Limitations

SEC EDGAR API Constraints

Data Freshness

The SEC Company Facts API may contain outdated data, sometimes ranging from 5-15 years old. This means the analysis might not reflect the company's current financial state. Always verify the fiscal year of the data being analyzed.

Tag Variations

Companies use different tags for the same financial concepts. While we support multiple alternative tags, some companies may use non-standard tags that aren't captured, resulting in incomplete data extraction.

Company Type Restrictions

Financial Institutions

Banks, insurance companies, and other financial institutions use different financial statement structures that don't align with our standard ratio calculations. These companies are excluded.

Analytical Constraints

Historical Data Only

Our analysis is based on historical 10-K filings and does not account for recent market events, management changes, or pending transactions that could significantly impact a company's prospects.

Industry Context

The scoring system applies uniform thresholds across all industries. Some industries naturally operate with different leverage ratios, profitability margins, or cash flow patterns that may skew results.

Qualitative Factors

Financial ratios cannot capture qualitative factors such as management quality, competitive positioning, brand value, or industry disruption risks that are crucial for investment decisions.