Financial Statement Analysis J P Morgan
FINANCIAL STATEMENT ANALYSIS
2001 2002 2003 2004 2005
Current ratio Current Asset 471,282.00 552,006.00 535,360.00 785,855.00 764,409.00 Current Liability 146,955.00 186,074.00 127,750.00 140,392.00 139,788.00 3.21 2.97 4.19 5.60 5.47
CURRENT RATIO. The current ratio (Sannella, 1991) above shows that in the year 2001 the current assets of J P Morgan (MIkdashi, 2001) are 3.21 times larger than the current liabilities. The current ratio went down to 2.97 times in the year 2002. The current assets were 4.19 times larger than the current liabilities during the year 2003. The current ratio went up further to 5.60 times in the year 2004. The current assets finally went up to 5.47 times the current liabilities in the year 2005. The current ratio is very important because the creditors prefer that the current assets must be larger than the current liabilities. 2001 2002 2003 2004 2005
Quick Ratio Current Assets Inventory 471,282.00 552,006.00 535,360.00 785,855.00 764,409.00 Current liability 146,955.00 186,074.00 127,750.00 140,392.00 139,788.00 3.21 2.97 4.19 5.60 5.47
QUICK RATIO. Under the quick ratio method, the current ratio of J P Morgan (Laulajaine, 2003)for the year 2001 is 3.21. Also, in the year 2002, the current assets is 2.97 times larger than current liabilities. In the year 2003, the current assets increased to 4.19 times higher than current liabilities. Again, in 2004, the current assets increased to 5.60 times larger than current liabilities. In the year 2005, the current ratio has gone done a little bit. Current assets are now 5.47 times larger than current liabilities. The results using the current ratio and
2001 2002 2003 2004 2005
Current ratio Current Asset 471,282.00 552,006.00 535,360.00 785,855.00 764,409.00 Current Liability 146,955.00 186,074.00 127,750.00 140,392.00 139,788.00 3.21 2.97 4.19 5.60 5.47
CURRENT RATIO. The current ratio (Sannella, 1991) above shows that in the year 2001 the current assets of J P Morgan (MIkdashi, 2001) are 3.21 times larger than the current liabilities. The current ratio went down to 2.97 times in the year 2002. The current assets were 4.19 times larger than the current liabilities during the year 2003. The current ratio went up further to 5.60 times in the year 2004. The current assets finally went up to 5.47 times the current liabilities in the year 2005. The current ratio is very important because the creditors prefer that the current assets must be larger than the current liabilities. 2001 2002 2003 2004 2005
Quick Ratio Current Assets Inventory 471,282.00 552,006.00 535,360.00 785,855.00 764,409.00 Current liability 146,955.00 186,074.00 127,750.00 140,392.00 139,788.00 3.21 2.97 4.19 5.60 5.47
QUICK RATIO. Under the quick ratio method, the current ratio of J P Morgan (Laulajaine, 2003)for the year 2001 is 3.21. Also, in the year 2002, the current assets is 2.97 times larger than current liabilities. In the year 2003, the current assets increased to 4.19 times higher than current liabilities. Again, in 2004, the current assets increased to 5.60 times larger than current liabilities. In the year 2005, the current ratio has gone done a little bit. Current assets are now 5.47 times larger than current liabilities. The results using the current ratio and
Bibliography: Sannella, A., The Impact of GAAP on Financial Analysis: Interpretations and Applications for Commercial and Investment Banking, Quorum Books, New York, 1991 MIkdashi, Z., Financial Intermediation in the 21st Century, Palgrave, New York. 2001 Laulajainen, R., Financial Geography: A Banker 's View, Routledge, New York, 2003 All tables above are taken from the stock market analysis firm : http://quicktake.morningstar.com/Stock http://quicktake.morningstar.com/Stock/Income10.asp?Country=USA&Symbol=JPM&stocktab=finance&pgid=qtqnnavfinstate