Financial Analysis

Description

Go to sec.gov and click on “Filings”; you will see a drop-down box. Click on “Company Filings Search.”  In the Fast Search box (right side), type in USB to get the SEC filings for U.S. Bancorp AND PNC Bank. Find the most recently filed 10K (interactive data), and then click on “financial statements.”  From here you can open the firm’s Consolidated Balance Sheet and the Consolidated Statement of Income. Notice that you can access 2 to 3 years of data. Compute the following ratios (using exhibit 3.6 on page 92 of the text as a guide) for the most recent two years, showing your numerator and denominator, as well as the ratio result:   Return on equity Return on assets Tax ratio Expense ratio Asset utilization ratio (total revenue/total assets) Equity multiplier (total assets/total stockholders’ equity). Complete the following:   Create a table that shows the final results of all these ratios for the past two years for both U.S. Bancorp and PNC Bank. Write an essay analyzing the ratios,  indicating strengths and weaknesses discovered when examining the ratios over time, as well as the ratios compared to a competitor.