Thursday, June 20, 2019

Evaluate the Financial Performance of US Financial Services Company to Essay

Evaluate the Financial Performance of US Financial Services Company to determine if they are able to invest in India - taste ExampleTo determine whether USFSC can invest in India one must analyze the recent financial performance of the company.The net income of USFSC in 2011 was $3.76 billion. The companys net income change magnitude by 339% in semblance with the previous year. The company believes in giving back to its shareholders. In 2011 USFSC declared dividends of $665 million. The total assets of the company are $197.7 billion. In comparison with the previous year the total assets of USFSC have increased by 158%. The total loans and leases of the company amount to $138.9 billion. This total represents an increase of 205% in comparison with 2010. The debt to equity dimension of USFSC in 2011 was 1.12. This financial metric measures the amount of assets being provided by creditors for each dollar of assets being provided by stockholders (Garrison & Noreen, 2003). A proportion that calculates how leveraged the company is is the debt ratio. USFSC has a debt ratio of 0.53. Its debt ratio is relatively low which is favorable. Based on the analysis performed the company shows a lot of good signs. The profitability of the company has grown over the quondam(prenominal) year due in part to its 205% growth on loans. USFSC has also grown its total assets. The company is in sound financial condition to die hard an expansion strategy, thus investing in India is

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