Research for Final

RESEARCH FOR FINANCIAL ANALYSIS OF CITIGROUP COMPANY

Introduction

Financial analysis refers to the examining of financial statements or financial reports . Financial statements are formal records kept in the business to track down the income and expenditure activities . Financial statements provide a general overview of how the business is doing and these statements are normally four in number namely the balance sheet the income statement , statement of retained earnings and statement of cashflows

Citibank Company is a company located in the United States and deals with banking sector . It is known

for its excellence in the sales sector and as we look at this company its imperative that its success has been due to the organization of the companies ' financial statements

Analysis of Corporate Financial statements

Balance sheet

Citibank plc Balance sheet (Amounts in Millions

February 2008 Feb 2007

Fixed assets 10 ,038 8 ,527

Current assets 1 ,694 1 ,342

Short-term creditors (4 ,389 (3 ,487

NET CURRENT LIABILITIES (2 ,695 (2 ,145 )Long-term creditors (1 ,927 (1 ,565

Provisions (24 (19 )Equity shareholders ' funds 5 ,356 4 ,769

Minority interests 36 29 4 ,798

Citibank Financial Journal , 2008

Profit and Loss account in `000

2007 2008

Revenue 12 ,500 10 ,000

Cost of Sales 7 ,500 6 ,000

Gross Profit 5 ,000 4 ,000

Gross profit margin (gross profit / revenue ) 40 40

Operating Costs Sales and distribution 1...