Site: American Express Company $-$ Financials $-$ Annual

Reports & Proxy Statements

Analysis Areas

Liquidity Analysis: Calculate the Current Ratio, Quick Ratio, and Cash Ratio for $2022$ and $2023.$ Analyze the trends and discuss what they indicate about AMEX's ability to meet short$-$term obligations.

Solvency Analysis: Assess the Total Debt Ratio, Debt$/$Equity Ratio, Equity Multiplier, and Longterm Debt Ratio. Discuss their implications for AMEX's financial leverage and long$-$term stability.

Profitability Analysis: Determine the Profit Margin, Return on Assets $($ROA$),$ and Return on Equity $($ROE$).$ Evaluate AMEX's efficiency in generating profits from its sales and assets.

DuPont Identity Analysis: Break down the ROE using the DuPont Identity $($ROE $=$ Profit Margin $*$ Total Asset Turnover $*$ Equity Multiplier$).$ Analyze each component's contribution to the overall ROE.

Market Value Analysis: If data is available, calculate the Price$/$Earnings $($P$/$E$)$ ratio and Market$-$to$-$Book ratio for $2023.$ Discuss what these ratios reveal about market perceptions of AMEX's value and growth potential.

Comparative Analysis: Briefly compare AMEX's key financial ratios against industry averages. Discuss its competitive position within the industry.