留学生Essay写作—比较高盛与Close Brothers的年报

1、http:/ 留学生论文专业定制代写网站留学生Essay写作比较高盛与Close Brothers的年报Description of activities and source and type of revenuesGoldman Sachs has three main types of activitiesInvestment banking.This covers services like merger and acquisition advice,helping clients raise debt.Trading and principal investments.This covers trading and investing in fixed income and equity products,currencies and commodities.This is the largest division in terms of net revenues and generated 66%of net revenues in 2005.Asset managemen

2、t and security services.This division provides advisory and financial planning services including brokerage and advisory services to wide range of clients like pension fund and hedge funds.Table 1 shows the net income of the above three divisions in 2005.Table 1Goldman Sachs:Net income in the year ended November 20051Close Brothers provides following main activitiesInvestment banking.Close Brothers has three main divisions under investment banking:Asset management.This division manages assets of

3、 private clients,trust funds and offshore funds.Corporate finance provides merger and acquisition,financial restructuring and debt advisory services to corporate clients.Market-making division specialises in providing liquidity to the London retail market-making markets in UK and many international shares.Banking division normal banking services like deposits and foreign exchange facilities to personal and professional clients.Table 2 shows the distribution of operating income,as a measure of re

4、venues,of different divisionsTable 2Close Brothers:Operating income in the year ended 31 July 20052Profitability of the two companies from the company and shareholders perspectivesThe table 3 shows the profitability of Goldman Sachs in the years ended November 2004 and 2005Table 3Goldman Sachs:Profitability3Goldman Sachs increased its net revenues by 20.6%in 2005 whereas pre-tax earnings increased by 23.8%in the corresponding period.This shows that the company achieved not only higher profits in

5、 2005 but also increased the profitability by limiting growth in expenses.This is supported by the fact that pre-tax earnings as a percent of net revenues were 33.4%in 2005 compared to 32.5%in 2004.Net earnings also increased by 23.7%in the year 2005 in line with growth in pre-tax earnings.The higher growth in net earnings compared to net revenues shows that higher sales were not achieved at the expense of lower margins.Profitability for shareholders is measured in terms of diluted earnings per

6、share.The growth in diluted earnings per share was 25.7%in 2005.This was even higher than the growth in net-earnings.Shareholdersprofitability is also measured in terms of return on shareholders equity which is net earnings divided by the shareholders equity.This increased by 10%from 19.8%in 2004 to 21.8%in 2005.Higher return indicates Goldman Sachs is using equity to earn higher profits.The table 4 shows the profitability of Close Brothers for the years ended July 2004 and 2005Table 4Close Brot

7、hers:Profitability4Close Brothers increased its operating income by 11.7%in 2005 whereas pre-tax earnings increased by 7.2%only in the corresponding period.This shows that the increase in pre-tax profits was countered by a much higher increase in expenses.The operating margin dropped by 1%from 25.3%in 2004 to 24.2%in 2005.Operating margins of Close Brother were about 9%lower than that of Goldman Sachs indicating that Close Brothers operates in a more competitive environment.Similarly profit afte

8、r tax as a percent of revenues were 7%lower in case of Close Brothers15.8%for Close Brothers compared to 22.7%for Goldman Sachs.The growth in diluted earnings per share was only 4.4%in 2005.This is much lower than the growth in Goldman Sachs earning per share.The return on common shareholder equity was only 12.70%in case of Close Brother which means that from shareholders point of view return in Goldman Sachs is higher than Close Brothers.Long-term financial structure of two companiesTable 5 sho

9、ws the financial structure of Goldman Sachs looking at its short and long-term borrowings along with shareholders equity.Table 5Financial structure of Goldman Sachs5The%of long-term borrowings has increased from 59%to 64%in the year 2005.This has mainly come from the increase in unsecured long-term borrowings.The company is highly geared and its net debt to total capital ratio is 84%.As of November 2005,84%of Goldman Sachs was financed through net debt,i.e.,out of every$1 of its capital,84 cents came from debt.The table 6 shows the financial structure of Close Brothers.Table 6Financial Structure of Close Brothers6Companys long-term borrowings have increased significantly from 60%to 85%in the year 2005.Close Brothers gearing are more on long-term borrowings as compared to Goldman Sachs.The net debt to total capital ra

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