Table of Contents Introduction 1 JP Morgan and Chase 1 Business Background 1 Competitors 2 Current Affairs 3 Financial analysis 3 Profitability 3 Net Interest Margin 3 Price-To-Sales Ratios 4 The price-to-earnings ratio 4 Price Earnings Growth (PEG) Ratio 4 Liquidity 5 Leverage Ratio 5 Debt/Equity ratio 5 Return on Equity 6 Operating ratio 7 Return on Average Assets (ROAA) 7 Stock Analysis 7 Dividend yield 8 Earing per share 8 Conclusion and Recommendation 9 Introduction The aim of this report is to recommend whether or not a publicly traded company has been is worth investing in. The company chosen in this case is JPMorgan & Chase which is a large financial institution. This report is going to use a financial rational formed by the analysis of various financial metrics. Financial statements for banks have uniquely different analytical problem than statements for manufacturing, service and most companies in general. Therefore this analysis of JPMorgan and Chase 's financial statements requires a different approach in order to recognize the banks worth as an investment. Banks take deposits from savers and pay interest on these accounts. They receive interest on loans when they pass these funds on to borrowers. The spread between the rate they pay for funds and the rate they receive from borrowers is where their profits are derived from. This practice of combining deposits from many sources which can be lent to many borrowers forms a interchange of funds
Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.
The banking industry is highly competitive. The financial services industry has been around for hundreds of years. Wells Fargo has many competitors itself. In this paper, I will be doing a comparison of Wells Fargo & Company (WFC) and one of its biggest competitors, Bank of America Corporation (BAC). By analyzing looking at the financial ratios, one can see whether the company is successful or not. In the following, I will try to analyze and make a comparison of Wells Fargo’s and Bank of America’s recent performance in growth, income, and efficiency. Using a these criteria, I will determine which bank is the better buy according my analysis. My analysis of WFC & BAC’s performances
Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:
Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.
Simply putting, banks accept deposits from public; keep some of those deposits with them and lend the rest to businesses and individuals. Businesses and individuals in turn pay interest on
Grow the pie: through human-centered, peer-driven communities and innovative tech products, make it easier for people everywhere to buy and sell goods made by people.
Making an investment decision is never easy, and should be done on the basis of careful evaluation of the company, its underlying conditions, its finances, and the company's current trading conditions on the secondary market. The Royal Bank is a leading Canadian bank, but it has struggled to maintain revenues and profits in the past five years, experiencing significant volatility. As with all banks, RBC's performance is strongly correlated to the state of the economy in general, something that will need to be taken into account in understanding the firm's financial performance. This paper will evaluate the Royal Bank in terms of its income statement, balance sheet, its qualitative condition and its current stock price. All figures are in CAD unless otherwise noted.
d as a mom and pop shop and now is one of the largest trend setting corporations in the world.
eBay is a growth company with low fixed costs associated with its business. The company's growth has been relatively stable, and it tends to track the broad economy and the development of e-commerce. With a beta of 0.92, the growth in eBay's business seems fairly reliable. The company is profitable and its growth is managed slowly. Based on this assessment, eBay can handle some debt as a means to lower its cost of capital, but should not have more than the 30% range. There are a few reasons for this. The first is that while eBay has the top market position in its industry, the industry itself is still growing. Thus, eBay might not be able to retain its leading market position. The company's current cash flow can support taking on debt, but the future cash flow is uncertain. Thus, eBay can expect to meet some debt obligations, but should not take on too much leverage. It is also worth mentioning that eBay should use more equity in its capital structure because it is oriented towards long-term growth. Equity will help the company to align its capital structure with the time frame of the investment, which is for the long run.
To start the analysis of the industry, firstly the identification of which industry Blackmores is should be made. Since Blackmores is the company which identified as the natural health company, so the industry that Blackmores involved is the health care sector. Based on the Global Industry Classification Standard (GICS), the health care sector could be broken into two broad industries: one is health care equipment and services and the other is pharmaceuticals, biotechnology and life science. And Blackmores would be classified as the pharmaceuticals, biotechnology and life science industry which is called biotech & pharma industry.
To start the analysis of the industry, firstly the identification of which industry Blackmores is should be made. Since Blackmores is the company which identified as the natural health company, so the industry that Blackmores involved is the health care sector. Based on the Global Industry Classification Standard (GICS), the health care sector could be broken into two broad industries: one is health care equipment and services and the other is pharmaceuticals, biotechnology and life science. And Blackmores would be classified as the pharmaceuticals, biotechnology and life science industry which is called biotech & pharma industry.
We researched analyzed various aspect of financial trends for JP Morgan Chase in the last five years and found interesting facts. First lets us look at the Annual Total Revenues of the last five years for JP Morgan Chase. In fiscal year 2011, JP Morgan chase had an interest expense of 13.91 billion dollars and an operating income of 31.73 billion dollars. After the taxes are added up chase finished with an 18.2 billion dollars in net income. According to “Investopedia.com” the net profit margin which is also net income average for banks in the last five years increased about 18%. In 2015 JP Morgan Chase interest expense was 7.46 billion dollars and its operating income was 30.7 billion dollars. After taxes are added up JP Morgan Chase ended with a 23.92 billion dollars in net income. JP Morgan Chase innovation to create an app to increase its online banking propelled its net income or net profit margin to a 31.42% increase, higher than the market average for
This paper focuses on a financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be issued. Specifically, the issue is whether "we" would lend Chevron 10% of its net assets. The net assets for Chevron are $209.474 billion, so the amount in question is $20.9 billion in new debt. The report will first analyze the financial statements of Chevron in general terms, focusing on trends and ratios, and drawing conclusions about the overall financial health of the company based on that analysis. The second part of the paper will outline some of the criteria that a lending institution would have for lending to a company, and then that criteria will be applied to Chevron specifically.
The economic analysis of a company is a crucial part of determining the profits for the company owners and stakeholders. Currently medical device manufacturers like Medtronic are quite profitable, the baby boomers are growing older and the healthcare industry is thriving. However, there are other key figures that also help to determine how successful an organization like Medtronic will be. Such as: how much capital does the company invest in its processes, new product development, and production capability. These figures are important; a company can generate a greater return in these investments than the sale of stocks, bonds, or PPE. A reliable way to conduct an economic analysis of a company is to simply, “follow the money.” Decision
One of the most important decisions for any business is an investment with the purpose of making profits in the future. Investment decisions are concerned with the use of resources, including purchasing or selling and every decision could be vital to a company. Any casual decision can result in a long-term loss or bankruptcy. Therefore, a comprehensive investigation is necessary for all quality investment decision process. This process is even more critical to investors who invest in stock of companies or as shareholders. A financial statement breakdown is crucial in making effective