in finance home work due 3 pm monday 26

SAUD ALEBRAHIM

TERM PROGECT REPORT

FINANCE 331

Citigroup

Citigroup is one of the largest financial institutions in the world if not the largest. It was shaped from the merger combing the Travelers group and Citicorp in 1898. Now it operates on 140 countries and has 200,000,000 customers. But like its rivals it suffers from the financial crises

ROA : Return on Assets

This ratios is to measure how assets are efficiently utilized.

Citigroup ROA was back on 2006 %1.14 and on 2011% .95 But to show the effect of the crises on 2008 (%-1.40 ) this decrease on its earring to assets increase later on by the Fed and the government policy of pushing lots of money into the financial system to increase solvency and money circulation .

ROE : Return on Equity

A measure of the returns earned on the owners' both preferred and common stockholders investment.

By this ratio we could see that the return earned on investment in Citigroup was back on 2006 17.98% and 2011 6.16% on 2008 was a negative -19.55% this negative number show the suffer of Citigroup in their profit ratio during the crisis.

DEPT TO EQUITY:

This ratio is to measure the dept on shareholder to finance the company and that been said we see on citigrgrup which been bailout by the government big time after the crises. Their ration wad on 2006 14.73 and on 2008 was 12.69 and it declines all the way to 2011 to be 9.44

Net Profit Margin

This ratio is very important to compare a company profitability compare to the industry and it rivals. it tells you how much the company profits from each dollar. The citigroup have sufferd on 2008 very much that its net profit margin was -25.96% compare to 22.32% on 2006 but it getting back there by improving to 15.23% on 2011. In this ratio always the higher the better .