Bank of America
* Bank of America’s profit Margin stayed consistently on top of the Industry from the beginning of 2000 until the end of 2008. This shows that compared to similar firms, Bank of America had a greater control over its cost when compared to its rivals. From 2000-2008, Bank of America held a 5.439% higher profit margin than the whole Industry. Inversely, during 2009 Bank of America took a huge dip in its profit margin due to the economy having its worst recession in over 70 years. Thankfully, we were able to recover due to TARP (Troubled Assets Relief Program) stabilizing our financial system. Accordingly, Bank of America Shareholder’s took a big hit due to the fees associated with the government support.
* Return of Equity is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
* Bank of America’s Average Return on Equity (ROE) from 2000-2008 was substantially at an equilibrium with that of the Industry. Bank of America showed a consistent ability to gain a profit based on the Shareholder’s investment. Bank of America also showed that on average from 2000-2008 it had a higher Return of Equity compared to the Industry as a whole. Bank of America’s higher Profit Margin compared to the Industry, supported the higher average return on investments from 2000-2008. In the beginning of 2009, Bank of American had a rapid downward sloping year compared to that of the Industry. This had been caused by the financial institution poor management on the invested fund from shareholder’s equity, such as, default, and delinquencies on high risk investments. Due to Bank of America’s efficient management on their (ROA), they were able to be aligned or above the Industry on average.
* Equity Multiplier is a measure of financial leverage. It is calculated as Total Assets / Total
* Return of Equity is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
* Bank of America’s Average Return on Equity (ROE) from 2000-2008 was substantially at an equilibrium with that of the Industry. Bank of America showed a consistent ability to gain a profit based on the Shareholder’s investment. Bank of America also showed that on average from 2000-2008 it had a higher Return of Equity compared to the Industry as a whole. Bank of America’s higher Profit Margin compared to the Industry, supported the higher average return on investments from 2000-2008. In the beginning of 2009, Bank of American had a rapid downward sloping year compared to that of the Industry. This had been caused by the financial institution poor management on the invested fund from shareholder’s equity, such as, default, and delinquencies on high risk investments. Due to Bank of America’s efficient management on their (ROA), they were able to be aligned or above the Industry on average.
* Equity Multiplier is a measure of financial leverage. It is calculated as Total Assets / Total