Financial Analysis: Profitability (Strong/Average/Weak)-Strong Explanation: Looking at Return on Sales(ROS), Return on Assets(ROA) and Return on Equity(ROE) and comparing it with the industry average, we can say that the company’s Profitability ratio is on the stronger side Efficiency (Strong/Average/Weak)-Weak Explanation: Liquidity (Strong/Average/Weak)-Strong Explanation: Solvency (Strong/Average/Weak)-Average Explanation: In Financial Domain, 56 other companies have achieved higher asset turnover ratio than JPMorgan Chase. The Industry average is 0.06 whereas JPMC has an average of 0.04 which is on the lower side. The company’s ability to pay its current liability is very strong as their current ratio is much …show more content…
DuPont Analysis of ROE RatioROIROAROE TypeProfitabilityEfficiencySolvency FormulaNI/RevRev/ANI/AA/SENI/SE Your Company0.84%0.04%0.74%11.448.49% Your Industry1%0.05%0.60%12.857.86% *Asset*Financial TurnoverLeverage Significant Events: 1. Trading Revenue Lifts JPMorgan Chase back to profit in 3rd Quarter JPMorgan Chase has earned $5.57 Billion in Q3 compared with the loss of $380 million it made in the same quarter last year. On per share basis the company has earned $1.36 per share in this quarter. 2. JPMorgan: Results Suggest $66 Fair Value Fair value being $66 suggests that the unbiased estimate of the potential market value of company is positive. Consumer banking segment’s growth in revenue by 2% (year-over-year to $11.3 billion) Companies focus on delivering serious dividends shows that companies operations are focused on consumers and stockholders. Investment decision: JPMorgan Chase. : Invest 1. Last year company underperformed in the New York Stock Exchange. This year the results are positive and suggests that the investors can invest in companies stocks. All the segments