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Citigroup: Ratio analysis

1. From the Annual Report of the Company (see attachment), calculate all the ratios listed below.
2. What insights do these ratios provide about the company's performance?
3. What challenges / opportunities for improvement does the company appear to have based on the key financial ratios?
4. If you were a manager in this company, what recommendations would you make to address these challenges?

Profitability ratios:
Return on equity (%)
Return on assets (%)
Return on invested capital (%)
Profit margin (%)
Gross margin (%)
Price-to-earnings ratio (X)

Turnover-control ratios:
Asset turnover(X)
Fixed-asset turnover(X)
Inventory turnover (X)
Collection period (days)
Days' sales in cash (days)
Payables period (days)

Leverage and liquidity ratios:
Assets to equity (X)
Debt to assets (%)
Debt to equity (%)
Times interest earned (X)
Times burden covered (X)
Debt to assets (market value, %)
Debt to equity (market value, %)
Current ratio (X)
Acid test (X)


Solution Summary

Ratio analysis done in excel and interpreted for you.