Wells Fargo Company Analysis - 861 Words

Wells Fargo Company was incorporated on the 24th of January, 1929 a bank holding company. Its main purpose is to serve as a holding company for its subsidiaries. It has three segments of operation: Community Banking, Wholesale Banking and Wealth, and Brokerage and Retirement. The Company provides all sort of banking services in the area of retail, commercial and corporate purposes through their numerous banking stores and offices, the worldwide web, and other channels to cater for the needs individuals, businesses and institutions. Their services are available in all the fifty states, the District of Columbia and in other countries. It operates in the Money Center Banking industry (SIC Code 6021). Companies in this industry provides†¦show more content†¦These practices such as good customer service, adopting to technology, effective management and the like have caused the decrease in operating costs which overshadowed the fall in revenue. Wells Fargo’s liquidity ratios are better than J.P. Morgan’s and but not impressive compared to the industry’s average. The debt to equity ratio for Wells Fargo stood at 1.13 compared to J.P. Morgan’s and the industry’s average of 1.42 and 1.09 respectively. This shows that Wells Fargo has been financing their growth with debts but not as aggressive as J.P. This shows that they are putting themselves at undue financial risk if the unexpected occurs. Morgan. A current ratio of 1.1 for Wells Fargo means that they can barely be able to cover their short term debts. J.P. Morgan on the will not be able to meet their short-term debt as they have a current ratio of 0.4. However, investing in Wells Fargo is risky because of its high debt to equity ratio which is greater than 1. This is bad as interest rates rise, additional interest must be paid out of another debt. Wells Fargo’s activity ratios such as the accounts receivable turnover (115 days) are in the same in J.P. Morgan’s and the industry’s average. What stands out is that, Wells Fargo is also efficiently using their assets to generate revenue than J.P. Morgan and the industry’s average. The assets turnover ratio for Well Fargo over the five-year period ending 2013 shows 0.70. On the other hand, JPMorgan and theShow MoreRelatedCareer And Company Analysis : Wells Fargo1284 Words   |  6 PagesCareer and Company Analysis We all have some skills and we are all good in different areas. For me I have always been good in math and that is what led me to choose a career in accounting. At the moment I currently work as an accounting intern and I am gaining experience in being in an office. I think it would be beneficial to further my work experience and I think a bank would be a good choice so I can learn even more skills to become a good accountant. This is why I choose Wells Fargo as my companyRead MoreCompany Analysis : Wells Fargo Essay1390 Words   |  6 PagesUnited States. 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We arrived at this conclusion through a process started from the analysis of the market prospect and based on long-term investitors’ profitability. First of all we compared all the four building blocks of the analysis making a selection and finding out that few companies were not as convenient as the others. Even though it isn t the BEST in most of these fieldsRead MoreKey Relationships Between Bank of America and Wells Fargo1040 Words   |  5 PagesKey Financial Relationships: Bank of America and Wells Fargo Bank of America and Wells Fargo are separate banks, however; both of these institutions share many similarities when reporting their financial statements. The inter-relationships of the data provided in the statements seem to exemplify the correlation of accounting practices between these two banks. 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