You are reviewing year-end performance for a mid-sized commercial lender and wealth management business ahead of an internal management discussion. Your managing director wants a concise ratio-based view of profitability, liquidity, leverage, and valuation using only the company’s reported GAAP figures. You are not being asked for a full model, but you do need to show the math and explain what the ratios imply about operating performance. Assume all balances are year-end balances and currency is USD.
| Metric | Amount |
|---|---|
| Revenue | $12,000,000,000 |
| Net income | $2,400,000,000 |
| Total assets | $240,000,000,000 |
| Shareholders' equity | $24,000,000,000 |
| Current assets | $36,000,000,000 |
| Current liabilities | $30,000,000,000 |
| Total debt | $18,000,000,000 |
| EBITDA | $4,000,000,000 |
| Enterprise value | $44,000,000,000 |
Which financial ratios would you calculate from these figures to assess the company’s performance, what are the resulting values, and what do they tell you about profitability, liquidity, leverage, and valuation? If one or two inputs moved modestly, how would your conclusion change?