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Financial Analysis For A Publicly Traded Company

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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

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