Premium Essay

Advanced Fin Statement Analysis

In: Business and Management

Submitted By Kell1977
Words 6673
Pages 27
FI 575
2011

FINANCIAL STATEMENT ANALYSIS
J P MORGAN CHASE Vs. CITIGROUP

TO : PROF FRANK OWARISH

BY : RAYAN SEQUEIRA
ZHOUXIA WANG
HOMAR WRIGHT
DARA SIU WAN HO

TABLE OF CONTENTS
EXECUTIVE SUMMARY

3

INDUSTRY BACKGROUND

4

COMPANY PROFILE

6

RATIO ANALYSIS

8

ANALYSIS OF OPERATING ACTIVITIES

9

ANALYSIS OF INVESTING ACTIVITIES

11

ANALYSIS OF FINANCING ACTIVITIES

13

COMMON SIZE ANALYSIS

19

DEBT AND EQUITY FINANCING

20

INDUSTRY STANDARDS

22

FUTURE PROSPECTS

23

CONCLUSION

26

REFERENCES

27

APPENDIX

28

Page 2 of 33

EXECUTIVE SUMMARY
The financial statement analysis of JP Morgan Chase and Citigroup has been conducted and compared with each other to understand how one is performing in relation to the other.
Further, the two companies are also compared against the industry standards to know their positions. Since the two companies operate in the banking industry, they have similar

components in their financial statements, which facilitate better comparison of their financial health. For the purposes of the analysis, we have considered the cash flow statements, balance sheet, income statement and the notes to the 10K. Further, the ratio analysis has also been conducted to assess its financial efficiency.

JP Morgan Chase used in approximately $3.752 billion cash in its operating activities while the
Citigroup provided for $35.686 billion cash for its operating activities. In terms of the investing activities JP Morgan Chase had better cash flows as it provided for $54 billion in investing activities while the Citigroup provided for $43 billion in investing activities. As far as the financing activities are concerned, JP Morgan Chase used $49.2 billion and Citigroup used $77.4 billion. It is important to note that JP Morgan Chase paid a massive amount of…...

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