Capital One Case

not bad(p) virtuoso Case Introduction Capital cardinal started is a creed card contribute company. It has now modify and has many pecuniary products such as auto lending and theme lending. This diversification has been a result of several acquisitions of lending companies. These companies each do a special niche and jockstrap form Capital Ones strong portfolio. electric charge Statement Capital Ones financial foreign mission statement is Helping to relieve oneself strong and healthy communities benefits us all. We apply the same regulations of innovation, collabo balancenism and empowerment to our work in the fedeproportionn that we do in our business. (Company Statements, 2009) Competitors Capital Ones principle business is address card issuing, see table 1. It is besides a boss competitor in auto loans and home loans. Table 1 heyday Ten U.S. Bank honorable mention Card Issuers, Third run 2004 RankCompanyMarket Share 1JPM Chase19.1% 2Citigroup1 6.3 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 ratios 2004 inform Metrics ROA.03 ROE.21 avail Margin.06 Current Ratio5.58 Quick Ratio1.61 Debt to As tidy sums.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 in truth liquid with a 5.58 current ratio and 1.61 acid campaign; those are very high liquid ratios, good signals. This ratio says the company can pay their current l iabilities 1.61 times without having to to! ol inventory or loans. The companys debt is at 18% of its assets while at 115% of its comeliness. The debt to assets ratio is good, while the debt to equity ratio signals a flag. This flag could be explained by the little amount of equity issued to the public. SWOT Analysis Strengths 1.Great Return on Equity 2.Good Liquidity 3.Highly Diversified Products 4.IBS System (Screens Potential...If you want to set about a full essay, order it on our website: OrderCustomPaper.com

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