finmodeling 0.1 → 0.2

data/spec/company_spec.rb

@@ -3,71 +3,61 @@
 require 'spec_helper'
 
 describe FinModeling::Company  do
-  before(:each) do
-  end
-
   describe "initialize" do
-    it "takes a SecQuery::Entity and creates a new company" do
-      entity = SecQuery::Entity.find("aapl", {:relationships=>false, :transactions=>false, :filings=>true})
-      FinModeling::Company.new(entity).should be_an_instance_of FinModeling::Company
-    end
+    let(:entity) { SecQuery::Entity.find("aapl", {:relationships=>false, :transactions=>false, :filings=>true}) }
+    subject { FinModeling::Company.new(entity) }
+    it { should be_a FinModeling::Company }
   end
 
   describe "find" do
-    it "looks up a company by its stock ticker" do
-      FinModeling::Company.find("aapl").should be_an_instance_of FinModeling::Company
+    context "when given a valid stock ticker" do
+      subject { FinModeling::Company.find("aapl") } 
+      it { should be_a FinModeling::Company }
     end
-    it "returns nil if the stock symbol is invalid" do
-      FinModeling::Company.find("bogus symbol").should be_nil
+    context "when given a bogus stock ticker" do
+      subject { FinModeling::Company.find("bogus symbol") } 
+      it { should be_nil }
     end
   end
 
+  let(:company) { FinModeling::Company.find("aapl") }
+
   describe "name" do
-    it "returns the name of the company" do
-      c = FinModeling::Company.find("aapl")
-      c.name.should == "APPLE INC"
-    end
+    subject { company.name }
+    it { should == "APPLE INC" }
   end
 
   describe "annual_reports" do
-    before(:all) do
-      @company = FinModeling::Company.find "aapl"
-    end
-    it "returns a CompanyFilings object " do
-      @company.annual_reports.should be_an_instance_of FinModeling::CompanyFilings
-    end
-    it "returns an array of 10-K filings" do
-      @company.annual_reports.last.term.should == "10-K"
-    end
+    subject { company.annual_reports }
+    it { should be_a FinModeling::CompanyFilings }
+    specify { subject.all?{ |report| report.term == "10-K" }.should be_true }
   end
 
   describe "quarterly_reports" do
-    before(:all) do
-      @company = FinModeling::Company.find "aapl"
-    end
-    it "returns a CompanyFilings object " do
-      @company.quarterly_reports.should be_an_instance_of FinModeling::CompanyFilings
-    end
-    it "returns an array of 10-Q filings" do
-      @company.quarterly_reports.last.term.should == "10-Q"
-    end
+    subject { company.quarterly_reports }
+    it { should be_a FinModeling::CompanyFilings }
+    specify { subject.all?{ |report| report.term == "10-Q" }.should be_true }
   end
 
   describe "filings_since_date" do
-    before(:all) do
-      @company = FinModeling::Company.find "aapl"
-    end
-    it "returns a CompanyFilings object " do
-      @company.filings_since_date(Time.parse("2010-01-01")).should be_an_instance_of FinModeling::CompanyFilings
-    end
-    it "returns an array of 10-Q and/or 10-K filings filed after the given date" do
-      @company.filings_since_date(Time.parse("1994-01-01")).length.should == 11
-    end
-    it "returns an array of 10-Q and/or 10-K filings filed after the given date" do
-      @company.filings_since_date(Time.parse("2010-01-01")).length.should == 9
-    end
-    it "returns an array of 10-Q and/or 10-K filings filed after the given date" do
-      @company.filings_since_date(Time.parse("2011-01-01")).length.should == 5
+    let(:start_date) { Time.parse("1994-01-01") }
+    subject { company.filings_since_date(start_date) }
+    it { should be_a FinModeling::CompanyFilings }
+
+    context "when start date is 1994" do
+      let(:start_date) { Time.parse("1994-01-01") }
+      subject { company.filings_since_date(start_date) }
+      it { should have_at_least(11).items }
+    end
+    context "when start date is 2010" do
+      let(:start_date) { Time.parse("2010-01-01") }
+      subject { company.filings_since_date(start_date) }
+      it { should have_at_least( 9).items }
+    end
+    context "when start date is 2011" do
+      let(:start_date) { Time.parse("2011-01-01") }
+      subject { company.filings_since_date(start_date) }
+      it { should have_at_least( 5).items }
     end
   end
 end

data/spec/comprehensive_income_statement_calculation_spec.rb

@@ -0,0 +1,54 @@
+require 'spec_helper'
+
+describe FinModeling::ComprehensiveIncomeStatementCalculation  do
+  before(:all) do
+    xray_2012_q2_rpt = "http://www.sec.gov/Archives/edgar/data/1288776/000119312511282235/0001193125-11-282235-index.htm"
+    filing_q2 = FinModeling::AnnualReportFiling.download xray_2012_q2_rpt
+    @prev_ci_stmt = filing_q2.comprehensive_income_statement
+
+    xray_2012_q3_rpt = "http://www.sec.gov/Archives/edgar/data/818479/000081847912000023/0000818479-12-000023-index.htm"
+    filing = FinModeling::AnnualReportFiling.download xray_2012_q3_rpt
+    @ci_stmt = filing.comprehensive_income_statement
+    @period = @ci_stmt.periods.last
+  end
+
+  describe ".comprehensive_income_calculation" do
+    subject { @ci_stmt.comprehensive_income_calculation }
+    it { should be_a FinModeling::ComprehensiveIncomeCalculation }
+    its(:label) { should match /comprehensive.*income/i }
+  end
+
+  describe ".is_valid?" do
+    subject { @ci_stmt.is_valid? }
+    it { should == (@ci_stmt.comprehensive_income_calculation.has_net_income_item? || @ci_stmt.comprehensive_income_calculation.has_revenue_item?) }
+  end
+
+  describe ".reformulated" do
+    subject { @ci_stmt.reformulated(@period, ci_calc=nil) } 
+    it { should be_a FinModeling::ReformulatedIncomeStatement }
+  end
+
+  describe ".latest_quarterly_reformulated" do
+    subject{ @ci_stmt.latest_quarterly_reformulated(@ci_stmt, @prev_ci_stmt, @prev_ci_calc) }
+    it { should be_a FinModeling::ReformulatedIncomeStatement }
+  end
+
+  describe ".write_constructor" do
+    before(:all) do
+      file_name = "/tmp/finmodeling-ci-stmt.rb"
+      item_name = "@ci_stmt"
+      file = File.open(file_name, "w")
+      @ci_stmt.write_constructor(file, item_name)
+      file.close
+
+      eval(File.read(file_name))
+      @loaded_cis = eval(item_name)
+    end
+
+    subject { @loaded_cis }
+    it { should have_the_same_periods_as(@ci_stmt) }
+    #it { should have_the_same_reformulated_last_total(:net_financing_income).as(@ci_stmt) }
+  end
+
+end
+

data/spec/comprehensive_income_statement_item_spec.rb

@@ -0,0 +1,56 @@
+require 'spec_helper'
+
+describe FinModeling::ComprehensiveIncomeStatementItem do
+
+  describe "new" do
+    subject { FinModeling::ComprehensiveIncomeStatementItem.new("Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest") }
+    it { should be_a FinModeling::ComprehensiveIncomeStatementItem }
+  end
+
+  describe "train" do
+    let(:item) { FinModeling::ComprehensiveIncomeStatementItem.new("Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest") }
+    it "trains the classifier that this ComprehensiveIncomeStatementItem is of the given type" do
+      item.train(:ooci_nci)
+    end
+  end
+
+  describe "classification_estimates" do
+    let(:item) { FinModeling::ComprehensiveIncomeStatementItem.new("Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest") }
+    subject { item.classification_estimates }
+    its(:keys) { should == FinModeling::ComprehensiveIncomeStatementItem::TYPES }
+  end
+
+  describe "classify" do
+    let(:cisi) { FinModeling::ComprehensiveIncomeStatementItem.new("Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest") }
+    subject { cisi.classify }
+    it "returns the ComprehensiveIncomeStatementItem type with the highest probability estimate" do
+      estimates = cisi.classification_estimates
+      estimates[subject].should be_within(0.1).of(estimates.values.max)
+    end
+  end
+
+  describe "load_vectors_and_train" do
+    # the before(:all) clause calls load_vectors_and_train already
+    # we can just focus, here, on its effects
+
+    it "classifies >95% correctly" do # FIXME: add more vectors to tighten this up 
+      num_items = 0
+      errors = []
+      FinModeling::ComprehensiveIncomeStatementItem::TRAINING_VECTORS.each do |vector|
+        num_items += 1
+        cisi = FinModeling::ComprehensiveIncomeStatementItem.new(vector[:item_string])
+        if cisi.classify != vector[:klass]
+          errors.push({ :cisi=>cisi.to_s, :expected=>vector[:klass], :got=>cisi.classify })
+        end
+      end
+
+      pct_errors = errors.length.to_f / num_items
+      if pct_errors > 0.05
+        puts "errors: " + errors.inspect
+      end
+      pct_errors.should be < 0.05
+
+    end
+  end
+
+end

data/spec/debt_cost_of_capital_spec.rb

@@ -0,0 +1,19 @@
+require 'spec_helper'
+
+describe FinModeling::DebtCostOfCapital do
+  describe "#calculate" do
+    context "if given the after tax cost" do
+      let(:r) { FinModeling::Rate.new(0.05) }
+      subject { FinModeling::DebtCostOfCapital.calculate(:after_tax_cost => r) }
+      it { should be_a FinModeling::Rate }
+      its(:value) { should be_within(0.1).of(r.value) }
+    end
+    context "if given the after tax cost and marginal tax rate" do
+      let(:r) { FinModeling::Rate.new(0.05) }
+      let(:t) { FinModeling::Rate.new(0.35) }
+      subject { FinModeling::DebtCostOfCapital.calculate(:before_tax_cost => r, :marginal_tax_rate => t) }
+      it { should be_a FinModeling::Rate }
+      its(:value) { should be_within(0.1).of(r.value * (1.0 - t.value)) }
+    end
+  end
+end

data/spec/equity_change_calculation_spec.rb

@@ -0,0 +1,33 @@
+# equity_change_calculation_spec.rb
+
+require 'spec_helper'
+
+describe FinModeling::EquityChangeCalculation  do
+  before(:all) do
+    deere_2011_annual_rpt = "http://www.sec.gov/Archives/edgar/data/315189/000110465910063219/0001104659-10-063219-index.htm"
+    @filing = FinModeling::AnnualReportFiling.download(deere_2011_annual_rpt)
+    @ses_period = @filing.shareholder_equity_statement.periods.last
+
+    @equity_changes = @filing.shareholder_equity_statement.equity_change_calculation
+
+    bs_period_initial = @filing.balance_sheet.periods[-2]
+    bs_period_final   = @filing.balance_sheet.periods[-1]
+
+    @equity_plus_minority_int_initial = @filing.balance_sheet.reformulated(bs_period_initial).common_shareholders_equity.total + 
+                                        @filing.balance_sheet.reformulated(bs_period_initial).minority_interest         .total
+    @equity_plus_minority_int_final   = @filing.balance_sheet.reformulated(bs_period_final)  .common_shareholders_equity.total +
+                                        @filing.balance_sheet.reformulated(bs_period_final)  .minority_interest         .total
+  end
+
+  describe ".summary" do
+    subject{ @equity_changes.summary(:period => @ses_period) }
+
+    it { should be_an_instance_of FinModeling::CalculationSummary }
+
+    describe ".total" do
+      subject{ @equity_changes.summary(:period => @ses_period).total }
+      it { should be_within(1.0).of(@equity_plus_minority_int_final - @equity_plus_minority_int_initial) }
+    end
+  end
+end
+

data/spec/equity_change_item_spec.rb

@@ -0,0 +1,58 @@
+# equity_change_item_spec.rb
+
+require 'spec_helper'
+
+describe FinModeling::EquityChangeItem do
+
+  describe "new" do
+    subject { FinModeling::EquityChangeItem.new("Depreciation and amortization of property and equipment") }
+    it { should be_a FinModeling::EquityChangeItem }
+  end
+
+  describe "train" do
+    let(:item) { FinModeling::EquityChangeItem.new("Depreciation and amortization of property and equipment") }
+    it "trains the classifier that this EquityChangeItem is of the given type" do
+      item.train(:oci)
+    end
+  end
+
+  describe "classification_estimates" do
+    let(:item) { FinModeling::EquityChangeItem.new("Depreciation and amortization of property and equipment") }
+    subject { item.classification_estimates }
+    its(:keys) { should == FinModeling::EquityChangeItem::TYPES }
+  end
+
+  describe "classify" do
+    let(:eci) { FinModeling::EquityChangeItem.new("Depreciation and amortization of property and equipment") }
+    subject { eci.classify }
+    it "returns the EquityChangeItem type with the highest probability estimate" do
+      estimates = eci.classification_estimates
+      estimates[subject].should be_within(0.1).of(estimates.values.max)
+    end
+  end
+
+  describe "load_vectors_and_train" do
+    # the before(:all) clause calls load_vectors_and_train already
+    # we can just focus, here, on its effects
+
+    it "classifies >95% correctly" do # FIXME: add more vectors to tighten this up 
+      num_items = 0
+      errors = []
+      FinModeling::EquityChangeItem::TRAINING_VECTORS.each do |vector|
+        num_items += 1
+        eci = FinModeling::EquityChangeItem.new(vector[:item_string])
+        if eci.classify != vector[:klass]
+          errors.push({ :eci=>eci.to_s, :expected=>vector[:klass], :got=>eci.classify })
+        end
+      end
+
+      pct_errors = errors.length.to_f / num_items
+      if pct_errors > 0.05
+        puts "errors: " + errors.inspect
+      end
+      pct_errors.should be < 0.05
+
+    end
+  end
+
+end

data/spec/factory_spec.rb

@@ -6,13 +6,13 @@ describe FinModeling::Factory  do
   describe "BalanceSheetCalculation" do
     subject { FinModeling::Factory.BalanceSheetCalculation }
 
-    it { should be_an_instance_of FinModeling::BalanceSheetCalculation }
+    it { should be_a FinModeling::BalanceSheetCalculation }
   end
 
   describe "incomeStatementCalculation" do
     subject { FinModeling::Factory.IncomeStatementCalculation }
 
-    it { should be_an_instance_of FinModeling::IncomeStatementCalculation }
+    it { should be_a FinModeling::IncomeStatementCalculation }
   end
 end
 

data/spec/forecasts_spec.rb

@@ -6,7 +6,7 @@ describe FinModeling::Forecasts  do
   before (:all) do
     @company = FinModeling::Company.find("aapl")
     @filings = FinModeling::CompanyFilings.new(@company.filings_since_date(Time.parse("2010-10-01")))
-    @forecasts = @filings.forecasts(@filings.choose_forecasting_policy, num_quarters=3)
+    @forecasts = @filings.forecasts(@filings.choose_forecasting_policy(e_ror=0.10), num_quarters=3)
   end
 
   describe "balance_sheet_analyses" do
@@ -15,7 +15,7 @@ describe FinModeling::Forecasts  do
   end
 
   describe "income_statement_analyses" do
-    subject { @forecasts.income_statement_analyses(@filings) }
+    subject { @forecasts.income_statement_analyses(@filings, e_ror=0.10) }
     it { should be_a FinModeling::CalculationSummary }
   end
 end

data/spec/income_statement_analyses_spec.rb

@@ -8,55 +8,57 @@ describe FinModeling::IncomeStatementAnalyses do
     @summary.title = "Title 123"
     @summary.rows = [ ]
     @summary.rows << FinModeling::CalculationRow.new(:key => "Revenue Growth", :type => :oa, :vals => [  4])
-    @summary.rows << FinModeling::CalculationRow.new(:key => "Sales / NOA", :type => :oa, :vals => [  4])
-    @summary.rows << FinModeling::CalculationRow.new(:key => "Operating PM", :type => :oa, :vals => [  4])
-    @summary.rows << FinModeling::CalculationRow.new(:key => "FI / NFA", :type => :oa, :vals => [  4])
-    @summary.rows << FinModeling::CalculationRow.new(:key => "Row", :type => :fa, :vals => [109])
-    @summary.rows << FinModeling::CalculationRow.new(:key => "Row", :type => :oa, :vals => [ 93])
-    @summary.rows << FinModeling::CalculationRow.new(:key => "Row", :type => :fa, :vals => [  1])
+    @summary.rows << FinModeling::CalculationRow.new(:key => "Sales / NOA",    :type => :oa, :vals => [  4])
+    @summary.rows << FinModeling::CalculationRow.new(:key => "Operating PM",   :type => :oa, :vals => [  4])
+    @summary.rows << FinModeling::CalculationRow.new(:key => "FI / NFA",       :type => :oa, :vals => [  4])
+    @summary.rows << FinModeling::CalculationRow.new(:key => "Row",            :type => :fa, :vals => [109])
+    @summary.rows << FinModeling::CalculationRow.new(:key => "Row",            :type => :oa, :vals => [ 93])
+    @summary.rows << FinModeling::CalculationRow.new(:key => "Row",            :type => :fa, :vals => [  1])
   end
 
   describe ".new" do
     subject { FinModeling::IncomeStatementAnalyses.new(@summary) }
 
     it { should be_a_kind_of FinModeling::CalculationSummary }
-    its(:title) { should == @summary.title }
-    its(:rows) { should == @summary.rows }
-    its(:header_row) { should == @summary.header_row }
-    its(:rows) { should == @summary.rows }
-    its(:num_value_columns) { should == @summary.num_value_columns }
-    its(:key_width) { should == @summary.key_width }
-    its(:val_width) { should == @summary.val_width }
-    its(:max_decimals) { should == @summary.max_decimals }
+    its(:title)              { should == @summary.title }
+    its(:rows)               { should == @summary.rows }
+    its(:header_row)         { should == @summary.header_row }
+    its(:rows)               { should == @summary.rows }
+    its(:num_value_columns)  { should == @summary.num_value_columns }
+    its(:key_width)          { should == @summary.key_width }
+    its(:val_width)          { should == @summary.val_width }
+    its(:max_decimals)       { should == @summary.max_decimals }
     its(:totals_row_enabled) { should be_false }
   end
 
-  describe ".print_extras" do
-    subject { FinModeling::IncomeStatementAnalyses.new(@summary) }
+  let(:isa) { FinModeling::IncomeStatementAnalyses.new(@summary) }
+
+  describe ".print_regressions" do
+    subject { isa }
 
-    it { should respond_to(:print_extras) }
+    it { should respond_to(:print_regressions) }
   end
 
   describe ".revenue_growth_row" do
-    subject { FinModeling::IncomeStatementAnalyses.new(@summary).revenue_growth_row }
+    subject { isa.revenue_growth_row }
     it { should be_a FinModeling::CalculationRow }
     its(:key) { should == "Revenue Growth" }
   end
 
   describe ".operating_pm_row" do
-    subject { FinModeling::IncomeStatementAnalyses.new(@summary).operating_pm_row }
+    subject { isa.operating_pm_row }
     it { should be_a FinModeling::CalculationRow }
     its(:key) { should == "Operating PM" }
   end
 
   describe ".sales_over_noa_row" do
-    subject { FinModeling::IncomeStatementAnalyses.new(@summary).sales_over_noa_row }
+    subject { isa.sales_over_noa_row }
     it { should be_a FinModeling::CalculationRow }
     its(:key) { should == "Sales / NOA" }
   end
 
   describe ".fi_over_nfa_row" do
-    subject { FinModeling::IncomeStatementAnalyses.new(@summary).fi_over_nfa_row }
+    subject { isa.fi_over_nfa_row }
     it { should be_a FinModeling::CalculationRow }
     its(:key) { should == "FI / NFA" }
   end

data/spec/income_statement_calculation_spec.rb

@@ -14,53 +14,28 @@ describe FinModeling::IncomeStatementCalculation  do
     @period = @inc_stmt.periods.last
   end
 
-  describe "net_income_calculation" do
-    it "returns a NetIncomeCalculation" do
-      @inc_stmt.net_income_calculation.should be_an_instance_of FinModeling::NetIncomeCalculation
-    end
-    it "returns the root node of the net income calculation" do
-      @inc_stmt.net_income_calculation.label.downcase.should match /net.*income/
-    end
+  describe ".net_income_calculation" do
+    subject { @inc_stmt.net_income_calculation }
+    it { should be_a FinModeling::NetIncomeCalculation }
+    its(:label) { should match /net.*income/i }
   end
 
-  describe "is_valid?" do
-    context "when no node contains the term 'tax'" do
-      #before(:all) do
-      #  @inc_stmt_no_taxes = FinModeling::Factory.IncomeStatementCalculation(:sheet => 'google 10-k 2011-12-31 income statement',
-      #                                                                       :delete_tax_item => true)
-      #end
-      it "returns false if none of the net income leaf nodes contains the term 'tax'" do
-        #@inc_stmt_no_taxes.is_valid?.should be_false
-        pending "no good way of setting up this test..."
-      end
-    end
-    context "when no node contains the terms 'sales' or 'revenue'" do
-      #before(:all) do
-      #  @inc_stmt_no_sales = FinModeling::Factory.IncomeStatementCalculation(:sheet => 'google 10-k 2011-12-31 income statement',
-      #                                                                       :delete_sales_item => true)
-      #end
-      it "returns false if none of the net income leaf nodes contains the term 'tax'" do
-        #@inc_stmt_no_sales.is_valid?.should be_false
-        pending "no good way of setting up this test..."
-      end
-    end
-    context "otherwise" do
-      subject { @inc_stmt.is_valid? }
-      it { should be_true }
-    end
+  describe ".is_valid?" do
+    subject { @inc_stmt.is_valid? }
+    it { should == (@inc_stmt.net_income_calculation.has_tax_item? && @inc_stmt.net_income_calculation.has_revenue_item?) }
   end
 
-  describe "reformulated" do
-    subject { @inc_stmt.reformulated(@period) } 
-    it { should be_an_instance_of FinModeling::ReformulatedIncomeStatement }
+  describe ".reformulated" do
+    subject { @inc_stmt.reformulated(@period, ci_calc=nil) } 
+    it { should be_a FinModeling::ReformulatedIncomeStatement }
   end
 
-  describe "latest_quarterly_reformulated" do
-    subject{ @inc_stmt.latest_quarterly_reformulated(@prev_inc_stmt) }
-    it { should be_an_instance_of FinModeling::ReformulatedIncomeStatement }
+  describe ".latest_quarterly_reformulated" do
+    subject{ @inc_stmt.latest_quarterly_reformulated(ci_calc=nil, @prev_inc_stmt, prev_ci_calc=nil) }
+    it { should be_a FinModeling::ReformulatedIncomeStatement }
   end
 
-  describe "write_constructor" do
+  describe ".write_constructor" do
     before(:all) do
       file_name = "/tmp/finmodeling-inc-stmt.rb"
       item_name = "@inc_stmt"
@@ -69,19 +44,12 @@ describe FinModeling::IncomeStatementCalculation  do
       file.close
 
       eval(File.read(file_name))
-
       @loaded_is = eval(item_name)
     end
 
-    it "writes itself to a file, and when reloaded, has the same periods" do
-      expected_periods = @inc_stmt.periods.map{|x| x.to_pretty_s}.join(',')
-      @loaded_is.periods.map{|x| x.to_pretty_s}.join(',').should == expected_periods
-    end
-    it "writes itself to a file, and when reloaded, has the same net financing income" do
-      period = @inc_stmt.periods.yearly.last
-      expected_nfi = @inc_stmt.reformulated(period).net_financing_income.total
-      @loaded_is.reformulated(period).net_financing_income.total.should be_within(1.0).of(expected_nfi)
-    end
+    subject { @loaded_is }
+    it { should have_the_same_periods_as(@inc_stmt) }
+    it { should have_the_same_reformulated_last_total(:net_financing_income).as(@inc_stmt) }
   end
 
 end

data/spec/income_statement_item_spec.rb

@@ -3,54 +3,42 @@
 require 'spec_helper'
 
 describe FinModeling::IncomeStatementItem do
-
-  before(:all) do
-    #FinModeling::IncomeStatementItem.load_vectors_and_train(FinModeling::IncomeStatementItem::TRAINING_VECTORS)
-  end
+  let(:isi) { FinModeling::IncomeStatementItem.new("Cost of Goods Sold") }
 
   describe "new" do
-    it "takes a string and returns a new IncomeStatementItem" do
-      isi = FinModeling::IncomeStatementItem.new("Cost of Goods Sold")
-      isi.should be_an_instance_of FinModeling::IncomeStatementItem
-    end
+    subject { isi }
+    it { should be_a FinModeling::IncomeStatementItem }
   end
 
   describe "train" do
     it "trains the classifier that this ISI is of the given type" do
-      FinModeling::IncomeStatementItem.new("provision for income tax").train(:tax)
+      isi.train(:tax)
     end
   end
 
   describe "classification_estimates" do
-    it "returns a hash with the confidence in each ISI type" do
-      isi = FinModeling::IncomeStatementItem.new("Cost of Services")
-
-      FinModeling::IncomeStatementItem::TYPES.each do |klass|
-        isi.classification_estimates.keys.include?(klass).should be_true
-      end
-    end
+    subject { isi.classification_estimates }
+    it { should be_a Hash }
+    its(:keys) { should == FinModeling::IncomeStatementItem::TYPES }
   end
 
   describe "classify" do
+    subject { isi.classify }
     it "returns the ISI type with the highest probability estimate" do
-      isi = FinModeling::IncomeStatementItem.new("provision for income tax")
       estimates = isi.classification_estimates
-      estimates[isi.classify].should be_within(0.1).of(estimates.values.max)
+      estimates[subject].should be_within(0.1).of(estimates.values.max)
     end
   end
 
   describe "load_vectors_and_train" do
-    # the before(:all) clause calls load_vectors_and_train already
-    # we can just focus, here, on its effects
-
-    it "loads vectors from a given file, trains on each example, and correctly classifies tax" do
-      isi = FinModeling::IncomeStatementItem.new("provision for income tax")
-      isi.classify.should == :tax
+    context "tax" do
+      subject { FinModeling::IncomeStatementItem.new("provision for income tax").classify }
+      it { should == :tax }
     end
 
-    it "loads vectors from a given file, trains on each example, and correctly classifies revenue" do
-      isi = FinModeling::IncomeStatementItem.new("software licensing revenues net")
-      isi.classify.should == :or
+    context "or" do
+      subject { FinModeling::IncomeStatementItem.new("software licensing revenues net").classify }
+      it { should == :or }
     end
 
     it "classifies >95% correctly" do
@@ -74,12 +62,12 @@ describe FinModeling::IncomeStatementItem do
   end
 
   describe "tokenize" do
+    subject { FinModeling::IncomeStatementItem.new("Cost of Goods Sold").tokenize }
     it "returns an array of downcased 1-word, 2-word, and 3-word tokens" do
-      isi = FinModeling::IncomeStatementItem.new("Cost of Goods Sold")
       expected_tokens  = ["^", "cost", "of", "goods", "sold", "$"]
       expected_tokens += ["^ cost", "cost of", "of goods", "goods sold", "sold $"]
       expected_tokens += ["^ cost of", "cost of goods", "of goods sold", "goods sold $"]
-      isi.tokenize.sort.should == expected_tokens.sort
+      subject.sort.should == expected_tokens.sort
     end
   end
 

data/spec/liabs_and_equity_calculation_spec.rb

@@ -12,9 +12,12 @@ describe FinModeling::LiabsAndEquityCalculation  do
   end
 
   describe "summary" do
-    it "only requires a period (knows how debts/credits work and whether to flip the total)" do
-      @lse.summary(:period=>@period).should be_an_instance_of FinModeling::CalculationSummary
-    end
+    subject { @lse.summary(:period=>@period) }
+    it { should be_a FinModeling::CalculationSummary }
+  end
+
+  describe ".has_equity_item" do
+    pending "Find a test case..."
   end
 end