AMERICAN EXPRESS
AMERICAN EXPRESS
Industry Analysis
• Flag bearer company for credit card business.
• Headquartered in Three world financial Center,
Manhattan, New York City, New York, United States and dates back to 1850.
• It allows secured transaction, more portability of money, easy purchase and increased business volume. • Uses its own payment gateway names Amex Secured
Pay.
• Almost 24% of the total dollar value of transaction in
USA is credited to Amex cards.
• Top 20 most admired brands of the world.
• Most innovative company with the largest travel network that helps customers and businesses yield the max.
• Amex deals with the niche clientele in the Indian consumer market with cards attracting annual pay.
• India is increasing at a rapid rate, adding more than
20 million cards in the last financial year.
• Highest number of card has been issued by HDFC closely followed by SBI and Axis bank
Capital Structure
• Capital structure defines how a firm finances its overall operations and growth through various sources of funds.
• Capital structure consists of a mix of long term debts, short term debts and common and preferred equity of the company.
• Total debt to Total equity: 309.56
• Total debt to Total capital: 75.58.
• Total debt to Total asset: 38.71.
• Long term debt to Equity: 233.28
• Long term debt to Total equity: 56.96
CAPITAL BUDGETING
• Capital Budgeting (or investment appraisal) is the planning process used to determine whether an organization’s longterm investments such as new machinery, replacement machinery, new plants, new products and research and development projects are worth pursuing.
• Investment plans of American Express:
• Making membership mobile
• Serve Software Platform
• Joint Venture with Global Business Travels (GBT)
ANALYSIS
• Total revenues have increased by 4% from last year whereas net income has showed the increase of 20% which is indeed a good sign of growth for the company. • Return on Equity is highest in 2013 which tells us that
Industry Analysis
• Flag bearer company for credit card business.
• Headquartered in Three world financial Center,
Manhattan, New York City, New York, United States and dates back to 1850.
• It allows secured transaction, more portability of money, easy purchase and increased business volume. • Uses its own payment gateway names Amex Secured
Pay.
• Almost 24% of the total dollar value of transaction in
USA is credited to Amex cards.
• Top 20 most admired brands of the world.
• Most innovative company with the largest travel network that helps customers and businesses yield the max.
• Amex deals with the niche clientele in the Indian consumer market with cards attracting annual pay.
• India is increasing at a rapid rate, adding more than
20 million cards in the last financial year.
• Highest number of card has been issued by HDFC closely followed by SBI and Axis bank
Capital Structure
• Capital structure defines how a firm finances its overall operations and growth through various sources of funds.
• Capital structure consists of a mix of long term debts, short term debts and common and preferred equity of the company.
• Total debt to Total equity: 309.56
• Total debt to Total capital: 75.58.
• Total debt to Total asset: 38.71.
• Long term debt to Equity: 233.28
• Long term debt to Total equity: 56.96
CAPITAL BUDGETING
• Capital Budgeting (or investment appraisal) is the planning process used to determine whether an organization’s longterm investments such as new machinery, replacement machinery, new plants, new products and research and development projects are worth pursuing.
• Investment plans of American Express:
• Making membership mobile
• Serve Software Platform
• Joint Venture with Global Business Travels (GBT)
ANALYSIS
• Total revenues have increased by 4% from last year whereas net income has showed the increase of 20% which is indeed a good sign of growth for the company. • Return on Equity is highest in 2013 which tells us that