Running head: FINANCIAL ANALYSIS ANALYSIS JPMORGAN CHASE
Financial Analysis JPM!gan Chase Na"e Ins#i#u#in
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Financial Analysis JPM!gan Chase
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Financial Analysis JPM!gan Chase In #he inc"e s#a#e"en# % #he "a&! i#e"s %! #he %inancial analysis a!e #he ne# !e'enues( )e!a#ing e*)enses and #he ne# inc"e+ ,he ne# !e'enues cnn#e #he sales 'lu"e %! #he c")any #ha# -uld hel) in unde!s#anding #he -hles"e g!-#h % #he c")any ecn"ically .JPM!gan Chase / C+( $012+ ,he ne# )e!a#ing e*)enses )!'ides #he in%!"a#in % h- #he "anage"en# has 3een cn#!lling #he cs# # enhance ecn"ic g!-#h %! JPM!gan chase+ ,he ne# inc"e !e'eals h- #he JPM!gan chase "anage"en# "a*i"i4es #he -eal#h % #he sha!ehlde! each yea!+ ,he s#a#is#ics n #hese #h!ee )e!%!"ance since $011 # $01 has 3een su""a!i4ed n #he 3el- g!a)h+ G!a)h 1+0: Performance Metrics from Income Statement.
Performance metrics Income statement $120,000.00 $100,000.00 $80,000.00 Millions ($)
$60,000.00 $40,000.00 $20,000.00 $-
2011
201 2
2013
2014
20 15
Yea r
Tota l Net Revenue Revenue
Net Income
Tota l Non Inter Inte res t Exens e
F!" #he a3'e g!a)h( #he!e has 3een a s#eady %l- in ne# !e'enues -hich !anges %!" 560 3illin # 5 100 3illin+ ,his "eans #he "anage"en# has 3een n #he %!e%!n# in ensu!ing s#a3ili#y in #he sales 'lu"e+ ,he )e!a#ing e*)enses ha'e 3een n #he decline since yea! $011+ ,he ne# inc"e n #he #he!( has 3een inc!easing since $011+ F!" #his analysis( i# is e'iden# #ha#
Financial Analysis JPM!gan Chase
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JPM!gan chase has had highe! ecn"ic g!-#h 'e! #he yea!s -hich has cul"ina#ed in# #he g!-#h in i#s ne# )!%i#s .8eu#le!( $0192+ On #he 3alance shee#( #he #h!ee "ain i#e"s used in #his analysis a!e #he ##al asse#s( lng #e!" de3# and c""n sha!ehlde!s ca)i#al+ ,hese #h!ee i#e"s a!e ;ui#e 'i#al in unde!s#anding #he ne# -!#h % #he c")any+ c")an y+ ,he lng #e!"s de3# sh-s le'e!age #ha# #he c")any has and h 3es# #he in'es#!s can !ely n i# %! "!e )!%i#a3ili#y )!%i#a3ili#y .Healy( / Pale)u( $01$2+ ,he sha!ehlde! e;ui#y sh-s h- #hei! -eal#h has g!-n 'e! #he yea!s and #he cn#!l #he sha!ehlde!s ha'e n #he %i!"s "anage"en# %! Chase C")any+ ,he %ll-ing cha!# )!'ide an insigh#%ul in%!"a#in a3u# #he #!ends 3!ugh# n 3a!d 3y #he c")any #h!ugh #h!ee )e!%!"ance "e#!ics .JPM!gan Chase / C+( $012+
Balance Sheet Performance Metrics $3,000,000.00 $2,500,000.00 $2,000,000.00 Millions
$1,500,000.00 $1,000,000.00 $500,000.00 $-
2 011
2 012
2 013
2 014
20 15
Yea r
Tota l !sse ts
"on# term e%t e%t
&'arre'o l(ers E)u*t+ &'a
F!" #he a3'e cha!#( i# is e'iden# e' iden# #ha# #he %i!" has high a"un#s % asse#s %!" #he yea! $011 -hich has 3een inc!easing un#il #he yea! $019+ ,he %i!" has als inc!eased in #e!"s % #he sha!ehlde!s e;ui#y+ ,he ,he de3#s ha'e 3een !educing since #he yea! $011 3u# a# a sl- !a#e+ S %a!
Financial Analysis JPM!gan Chase
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#he!e a!e n %luc#ua#in in #he a"un#s % de3# % #he c")any "eaning #he %i!" "anage"en# is cnse!'a#i'e in #e!"s % de3# "anage"en# .JPM!gan Chase / C+( $012+ ,he!e a!e #h!ee "a&! su!ces % %unds acc!ding ac c!ding # #he C")any Cash %l- s#a#e"en#+ ,he!e su!ces % %unds en#ail #he !e#ained ea!nings( #he lng #e!"s de3# and #he sha!ehlde!s sha!ehlde !s c""n e;ui#y .Healy( / Pale)u( $01$2+ ,he !e#ained ,he c")any has assu"ed a cnse!'a#i'e di'idend )licy -hich all-s %! #he ince)#in % l- a"un# di'idends -hich inc!easing #he a"un#s #ha# a!e )lughed in# #he c")any+ Ms# % #he su!ces % %unds c"e %!" #he c""n sha!ehlde!s+ ,he de3# ca)i#al is l-e! #han #he c""n sha!ehlde! ca)i#al .JPM!gan Chase / C+( $012+ ,he c")any #ha# is !es)nsi3le %! #he issuance and #he cn#en# % Chase %inancial s#a#e"en#s is Pni#ed S#a#es+ In cnclusin( JPM!gan Chase / C has a gd %inancial 3ase+ i#s )e!%!"ance in #e!"s % sales is n# a%%ec#ed 3y #he n#in % high )!ice 'la#ili#y % s#c= in #he "a!=e#+ Again #he %i!"
Financial Analysis JPM!gan Chase
has "anaged i#s lng #e!"s de3# in #he #h e "s# e%%ec#i'e -ay )ssi3le and #his has hel)ed i# )!'ide a gd %inancial 3ase %! i#s ecn"ic ecn "ic g!-#h+ ,he gene!al heal#h % #he c")any c ")any is gd %! a )#en#ial in'es#!+
Financial Analysis JPM!gan Chase
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Re%e!ences 8eu#le!( I+ F+ .$0192+
Healy( P+ M+( / Pale)u( + G+ .$01$2+ Business Analysis Valuation: Valuation: Using Using Financial Statements+ Cengage Lea!ning+ JPM!gan Chase / C+( C+ .$01( Augus# 1$2+ Annual Re)!# and P!*y B JPM!gan Chase / C+ Re#!ie'ed Oc#3e! 1( $01?( %!" h##)s:---+&)"!ganchase+c"c!)!a#ein'es#!D h##)s:---+&)"!ganchase+c"c!)!a#ein'es#!D!ela#insannualD!e)!#D)!*y !ela#insannualD!e)!#D)!*y+h#" +h#"
