Example research essay topic: Net Profit Margin Current Liabilities - 568 words

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City Group Bank City Group Bank is the largest American bank and the largest corporation in the world, if measured by the assets. The U. S. bank has more than 3, 000 bank branches and more than 2, 000 locations in over 100 world countries.

The current ratio is calculated by dividing current assets by current liabilities. Although it is quite difficult to find exact figures for City Group Inc, the latest figures available are taken from web 31 -Dec- 2006 31 -Dec- 2005 Current Assets Cash And Cash Equivalents 462, 961, 000 351, 097, 000 Short Term Investments 282, 817, 000 217, 464, 000 Net Receivables 44, 445, 000 42, 823, 000 Inventory - - Other Current Assets - - Total Current Assets 790, 223, 000 611, 384, 000 Current Liabilities Accounts Payable 85, 119, 000 70, 994, 000 Short/Current Long Term Debt 450, 068, 000 309, 322, 000 Other Current Liabilities 857, 928, 000 713, 703, 000 Total Current Liabilities 1, 393, 115, 000 1, 094, 019, 000 According to these figures, current ratio is 790, 223, 000 / 1, 393, 115, 000 = 0. 5672 (31 -Dec- 2006) and 611, 384, 000 / 1, 094, 019, 000 = 0. 5588 (31 -Dec- 2005). Quick ratio, calculated as (Current Assets Inventories) / Current Liabilities is 0. 5672 According to Reuters, Citigroup's Net Profit Margin (TTM) is 4. 78, while Net Profit Margin - 5 Yr. average is 19. 55. Return On Equity (TTM) is 3. 08 while Return On Equity - 5 Yr. Avg.

is 14. 49 (Citigroup Inc C (NYSE) ) Return On Assets (TTM) is 0. 19, while Return On Assets - 5 Yr. Avg. is 1. 02 Price-earnings ratio (P/E Ratio (TTM) ) for the company is 36. 59 (while for the industry it is 16. 35). Times Interest Earned Ratio = (net income + interest) / interest. It indicates the extent of which earnings are available to meet interest payments. According to web it is equal to NI from Continuing Ops+Taxes from Containing+Interest Expense+Minority Interest divided by Interest Expense = (2, 212, 000 + 538, 000 + 20, 804, 000 + 20, 000) / 20, 804, 000 = 1. 13 Debt-to-equity is calculated as Total Liabilities/ Shareholders Equity = 1, 764, 535, 000 / 119, 783, 000 = (web 31 -Dec- 2006) = 14. 73109; as per 2007 it is 2, 069, 108. 00 / 113, 598. 00 = 18. 21429 (web) Total asset turnover for Citigroup Inc is 0. 05 (web) According to the latest information available, Citi reports a 4 Q net loss of $ 9. 83 billion, or $ 1. 99 per share.

Results include write-downs, increased credit costs, and strong business volumes. (CitiGroup). Overall, the company's position weakened significantly, due to global financial crisis, U. S. sub-prime crisis, etc. , and the company reports increase in credit costs predominantly due to higher current and estimated losses on consumer loans. However, despite reports losses, the company's position is relatively strong if compared to the other financial institutions in the U. S.

and international market. References CitiGroup. (n. d. ). Retrieved February 17, 2008, from web CitiGroup - Balance Sheet. (n. d. ). Retrieved February 17, 2008, from web Citigroup Inc C (NYSE). (n.

d. ). Retrieved February 17, 2008, from web

Research essay sample on Net Profit Margin Current Liabilities