Sample Essay

In 1998, the year of the merger, the average price earning ratio was at 20.70, with the share price & sales ratio at 1.49. The share price and book value ratio for the company was at 2.63, with a net profit margin of 12.3. The book value per share in 1998 was at $9.46.

Two years after the merger in 2000 the average price earning ratio was at 20.20, with the share price & sales ratio at 2.61. The share price and book value ratio for the company was at 3.87, with a net profit margin of 19.3. The book value per share in 2000 was at $13.18.

Return on Equity

Two years before the merger, the ROE for the Citibank and Travelers Group was at 4.78 percent and 4.91 percent respectively. In 1998, the year of the merger, the debt equity ratio for the company was at 3.41. The return on equity ratio stood at 16.3% with the interest coverage in 1998 was 1.4. Two years after the merger, the debt equity ratio for the company in 2000 was at 4.14, and the return on assets ratio at 1.4%. The return on equity ratio stood at 18.5% with the interest coverage in 2000 was 1.5. Since the deal closure of the merger, the ROE of the Citicorp has fluctuated dramatically going as high as 19.86 percent 18 months after the merger to arrive at a relatively stable position of 5.76 percent in 2000.

These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.

Essay: Financial Ratios of Citigroup
Tagged on: