Financial Statement Analysis J P Morgan - 1943 Words

FINANCIAL STATEMENT ANALYSIS 2001 2002 2003 2004 2005 Current ratio Current Asset 471,282.00 552,006.00 535,360.00 785,855.00 764,409.00 Current Liability 146,955.00 186,074.00 127,750.00 140,392.00 139,788.00 3.21 2.97 4.19 5.60 5.47 CURRENT RATIO. The current ratio (Sannella, 1991) above shows that in the year 2001 the current assets of J P Morgan (MIkdashi, 2001) are 3.21 times larger than the current liabilities. The current ratio went down to 2.97 times in the year 2002. The current assets were 4.19 times larger than the current liabilities during the year 2003. The current ratio went up further to 5.60 times†¦show more content†¦This shows that J P Morgan will have a continuous good profit for the coming years unless, of course, a fortuitous or unexpected event occurs. 2001 2002 2003 2004 2005 Return on total assets Profits after taxes 1,719.00 1,663.00 6,719.00 4,466.00 8,483.00 Total assets 693,575.00 758,800.00 770,912.00 1,157,248.00 1,198,942.00 0.00248 0.00219 0.00872 0.00386 0.00708 RETURN ON TOTAL ASSETS. Under the return on assets method, the profits after taxes is .248 percent of the total assets in 2001. In the year 2002, the profit after taxes has decreased to only .219 percent of the total assets. In the year 2003, the net profit after tax has greatly increased to .872 percent of the total assets. Net profit before tax in 2004 has again decreased to .386 percent of the total assets. Finally, the net profit after tax in the year 2005 has increased to .708 percent of the total assets. This is again a very good sign that business has improved during the year 2005. 2001 2002 2003 2004 2005 Return on stock- Profits after taxes 1,719.00 1,663.00 6,719.00 4,466.00 8,483.00 holders equity Stockholders equity 41,099.00 42,306.00 46,154.00 105,653.00 107,211.00 0.04 0.04 0.15 0.04 0.08 RETURN ON STOCKHOLDERS EQUITY.Show MoreRelatedSwot Analysis for Bank of America Essay1553 Words   |  7 Pagesthe SWOT analysis for Bank of America one I performed a SWOT analysis for the Bank of America. I assumed the role of a mutual fund manager work for First Investment Inc Investment Inc. With the information I gathered in part one of my paper I made the decision to invest in Bank of America. In part two of these papers I will further explain why I chose to invest in Bank of America. 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