Understanding the Error in R’s finreportr Package

The finreportr package, used for accessing financial data from the SEC (Securities and Exchange Commission), has encountered an error with version 3.6.3 of R. The issue arises when attempting to retrieve balance sheets, income statements, or cash flow statements using functions like GetBalanceSheet(), GetIncome(), or GetCashFlow(). This problem has puzzled users, including the individual who posted on Stack Overflow.

In this article, we will delve into the details of the error message and explore possible reasons behind it. We’ll discuss potential solutions, including modifications to the finreportr package itself and utilizing a Virtual Private Network (VPN).

The Error Message

The error message typically looks like this:

> GetBalanceSheet("SQ",2019)
  ...
  > Error in fileFromCache(file) : 
    Error in download.file(file,
      cached.file, quiet = !verbose) :
      cannot open URL
      'https://www.sec.gov/Archives/edgar/data/1512673/000151267319000003/https://xbrl.sec.gov/dei/2018/dei-2018-01-31.xsd'
  ...

In the provided example, the error occurs while trying to retrieve the balance sheet for Square Inc. The function attempts to open a URL using download.file(), but the server returns a ‘404 Not Found’ response.

Possible Causes

Several potential causes could lead to this error:

1. SEC Blocking IP Addresses: The SEC might block access from certain IP addresses, possibly due to security concerns or bandwidth limitations.
2. Invalid URL: A mistake in the URL passed to GetBalanceSheet() could result in an invalid request.
3. Server Maintenance: The SEC website may be undergoing maintenance, causing downtime for these services.

Solutions and Workarounds

Modifying the finreportr Package

One potential solution involves modifying the finreportr package itself to handle exceptions more elegantly or implement a timeout mechanism. However, this requires knowledge of R programming language, package development, and potentially, web scraping techniques.

# Code snippet that could be modified in the finreportr package
get_balance_sheet <- function(ticker, year) {
  # original code here
  
  # Example modification: add a retry mechanism with timeout
  max_retries = 5
  retry_delay = 2
  
  for (i in seq_len(max_retries)) {
    result <- download.file(file)
    if (!is.null(result)) {
      return(result)
    }
    cat(paste0("Retrying attempt", i+1, "...\n"))
    Sys.sleep(retry_delay)
  }
  stop("Failed to retrieve balance sheet after max retries")
}

Utilizing a Virtual Private Network (VPN)

Another possible solution is using a VPN service. Some users have reported that connecting via a VPN resolves the issue:

# Update on using a VPN
if you're having issues with edgar data, try using a vpn service like nordvpn or expressvpn...
some people report success after enabling vpn and trying again.

Keep in mind that this workaround relies on the assumption that your IP address is being blocked by the SEC. Using a VPN does not guarantee access to the SEC website but can help resolve issues related to network-level blocking.

Conclusion

The error with the finreportr package has been puzzling users, including the Stack Overflow poster. The message points towards an issue with accessing the SEC’s financial data due to invalid URLs or IP address blocking. Modifying the package itself could provide a solution, but this requires deeper knowledge of programming and web scraping techniques.

If you’re experiencing issues with finreportr while using R 3.6.3, attempting to connect via a VPN might be worth trying as a workaround. Nevertheless, it’s crucial to understand that utilizing a VPN does not guarantee access to the SEC website. Always verify any information obtained through this channel for accuracy and authenticity.

As new updates are released by the finreportr package developers or the SEC website itself, we can expect further clarification on the root cause of these issues.

Last modified on 2024-12-17