Finance Assignment

PART 2 FINANCIAL OVERVIEW OF JP MORGAN CHASE

a. Sales and Income Record:

------------- Fiscal Years -------------

2012 2013 2014 2015 2016 2017

Sales 97,031 97,367 95,112 93,543 95,668 99,624

Percent change in

Sales each year + 0.35 -2.32 -1.65 +2.27 +4.14

Net Income 21,284 17,886 21,745 24,442 24,733 24,441

Percent change in

Net income each year 15.97 +21.58 +12.4 +1.19 -1.18

GRAPH OF SALES & NET INCOME, FY 2012 – 2016

COMMENTS: sales and net income analyze the company’s profitability. The company has high sales compared to net income. However, there is a positive improvement over the years with an increase in both sales and net income.

b. Expense Distribution:

FY 2017

Interest expense: deposits 2,857

Federal funds purchase 0

Short term borrowing 481

Other expenses 10,937

Non-interest expense: Compensation and benefits 31,009

Occupancy expense 3,723

Tech, communication and equipment 7,706

Professional and outside services 6,840

Amortization of intangibles 0

Other expenses 9,156

PIE CHART OF EXPENSES, FY 2016

COMMENTS: the company’s non-interest expenses are higher than the interest expenses. This is a positive quality since helps in increasing the company’s profitability.

c. Assets Distribution:

Year-end FY 2017

Assets:

Cash 23,873

Accounts receivable 52,330

Inventory 365,762

Fixed Assets -

Other Assets 112, 076

PIE CHART OF ASSETS, Year-end FY 2017

COMMENTS: the company’s assets are used to determine its financial position. The company does not have much cash which is what attracts investors mostly and it has a lot of stock which means the company’s merchandise is not moving too fast and is not the most favorable for investors

c. Capital Structure:

Year-end FY 2017

Capital Structure:

Current Liabilities 1,879,785

Long-term & Other Liabilities 356,997

Preferred Stock (if any) 26,068

Common Equity 4,105

CAPITAL STRUCTURE PIE CHART, Year-end FY 2016

COMMENTS: the company’s capital structure is not so healthy since it shows a high level of debt and a low level of equity which has a negative effect on the company’s quality of investment.

sales 2013 2014 2015 2016 2017 97367 95112 93543 95668 99624 net income 2013 2014 2015 2016 2017 17886 21745 24442 24733 24441 Column1 interest expense noninterest expense 14275 58434 assets cash inventory accounts recievables fixed assets other assets 23873 365762 52330 0 112076 capital structure long term & other liabilities preferred stock common equity current liabilities 356997 26068 4105 1879785