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Financial Analysis: American Express Company - Essay Example
Executive summary 3
American Express’s liquidity 4
American Express’s leverage capacity 5
American Express’s profitability 6
American Express’s efficiency 8
Du Point Analysis 9
Company’s beta 9
Financial Analysis: American Express Company
Being a global service provider, American Express Company has been in the minds of many financial analysts and investors due to its ability to provide world class service and thereby sustain growth over long periods despite the continuous financial turbulence that has forced many companies to either shut their operations or cut the employment. With the principal business product services of credit payments as well as charge, the company has forged it operations to sustainable levels thereby giving back sufficient dividends to its investors (American Company Express, 2010, pg 79). The focus of this paper will be to establish the operational excellence within the company and the supporting financial capability behind the success of American Express. In this regard, the paper will employ the use of ratio analysis; liquidity ratios, leverage ratios, profitability ratios and efficiency ratios together with stock beta analysis of the company’s stock to provide an affirmative indication of the prevailing financial stability within American Express (Libby, Libby & Short, 2005, pg 143).
Company based financial analysis has been a predominant topic in the contemporary financial markets. Every investor is quick to evaluate and thereby clearly understand the fair and true standing of any company in which he/she intends to invest.