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JP Morgan Chase Co is a global financial services firm that operates as Investment bank Treasury and securities services Commercial banking and Asset and wealth management It also participates in Retail financial services and Card services In examining the companys Liquidity Ratios the current ratio is 1162 which means its Current Assets are slightly higher than its Current Liabilities making it easier to liquidate since there are enough assets to pay away the liabilities if they need to This is supported by the Working Capital of 153484 Million dollars However compared to the industrys average Current Ratio of 15 JP Morgan Chase is not considerably high in liquidity The company has significantly increased its Working Capital from 85945 in 2003 to nearly double that amount in 2004 meaning that its Current Assets has been growing in a much faster speed then its current liabilities which is good for the company The Current Cash Debt Coverage Ratio is negative but it is so close to zero it should be viewed as insignificant However it is clear that JP Morgan Chase lacks the ability to pay off all their short-term debts Because companies in the financial industry do not have inventories we cannot calculate any Activity Ratios for them However a look in the Profitability Ratios gives us great insight of how the company is doing The company has a Net Operation Margin Percentage of 0710 showing that 71 of the companys Revenues are from Operating Activities This number has been very stable in both years decreasing only 001 from 0720 showing that they have stable management procedures and considerable Operating Profits Simply putting this ratio in consideration it is desirable since they are stable in ratios while expanding Another Profitability Ratio the Cash Return on Sales has decreased a big amount from 0437 to -0506 This is because even though Net Sales has increased net operating cash decreased by a substantial amount It seems to
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