Capital One Case

not bad(p) virtuoso Case Introduction Capital wizard started is a creed card bestow company. It has now diversify and has many pecuniary products such as auto contribute and infrastructure lending. This diversification has been a result of several acquisitions of lending companies. These companies each do a special niche and help oneself form Capital Ones strong portfolio. thrill Statement Capital Ones financial direction statement is Helping to relieve oneself strong and healthy communities benefits us all. We apply the same normals of innovation, collabo balancenism and empowerment to our work in the confede balancen that we do in our business. (Company Statements, 2009) Competitors Capital Ones principle business is address card issuing, see table 1. It is overly a boss competitor in auto loans and home loans. Table 1 heyday Ten U.S. Bank realization Card Issuers, Third run 2004 RankCompanyMarket Share 1JPM Chase19.1% 2Citigroup16.3 3MBNA11.8 4Amer. Exp.9.3 5Bank of America8.0 6Discover7.2 7Capital One6.8 8HSBC2.9 9Providian2.6 10Wells Fargo1.2 (Cardweb, 2007) Financial proportions 2004 describe Metrics ROA.03 ROE.21 avail Margin.06 Current Ratio5.58 Quick Ratio1.61 Debt to As focalises.18 Debt to truth1.15 Ratio Analysis Capital Ones return on candor is 21%. This is higher than the average of 12 15%. The company has a 6% profit margin. The company is actually liquid with a 5.58 current ratio and 1.61 acid mental test; those are very high liquid ratios, good signals. This ratio says the company can pay their current liabilities 1.61 times without having to squatting inventory or loans. The companys debt is at 18% of its assets while at 115% of its paleness. The debt to assets ratio is good, while the debt to equity ratio signals a flag. This flag could be explained by the wee amount of equity issued to the public. SWOT Analysis Strengths 1.Great Return on Equity 2.Good Liqui dity 3.Highly Diversified Products 4.IBS S! ystem (Screens Potential...If you want to set about a full essay, order it on our website: OrderCustomPaper.com

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