U.S. Bancorp Ratio analysis

About U.S. Bancorp

  • Parent company of U.S. Bank
  • Provides line of banking, investment, mortgage, trust and payment services products to individuals, businesses, and institutions
  • 3,122 banking offices in 25 states
  • $438B in assets

Liquidity

  • Current ratio: 36.53% (2015)
  • Deposits are liabilities and loans are assets
  • Able to pay approximately $120B of its $330B in deposits

Solvency

  • Debt to total assets: 88.90% (2015)
  • Debt and assets are liquid, more debt than manufacturing companies
  • Large asset line as well; $377B of assets are likely to be converted to cash in the next 10 years

Financial Leverage

  • Long-term debt to equity: 68.52% (2015)
  • Not only can equity be used to pay down debt, deposits are able to be used as well if needed

Asset Efficiency

  • Asset turnover: 8.55 (2015)
  • Total asset turnover: 0.051 (2015)
  • Efficient with buildings and other assets, total assets include loans

Profitability

  • Gross profit margin: 14.34% (2015)
  • Increased in the last three years because sales (interest income) has increased more than cost of selling (interst paid on deposits etc.)

Market Value

  • EPS has increased, price earnings ratio has decreased
  • Income has increased, but the dividends have not kept up with stock price increase
  • Possible reasons: equity being used to fund expansion or U.S. Bancorp does not want to raise dividends to an unsustainable level

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Created with images by Gabriel F, SE - "Blue"

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