Economics Homework Help

For your assignment, you will begin by evaluating the balance sheets of JP Morgan Chase and Wells Fargo (provided in excel format in this week’s resources). Next, download the handout to complete this assignment deliverable.

Using the handout, determine if each institution’s balance sheet is in the correct order of most liquid to least liquid. Identify the items that generate the most revenue. Generate a separate Word document that identifies, defines, and analyzes what each item on the balance sheet is. If information is not found on the handout, utilize Yahoo Finance or SEC’s Edgar to analyze the 10-K filings.

Be sure to include the following in your assignment:

Ratios:

Net interest margin

Efficiency ratio

Liquidity coverage ratio

1. Leverage ratio
2. Provision for credit losses
3. Assets = Liabilities + Shareholder’s Equity
4. Total Current Ratio
5. Return on Assets
6. Return on Equity
7. Rate Paid on Funds
8. Loans to Assets Ratio
9. Leverage Ratio
10. Equity-to-Loans
11. Debt-to-Equity Ratio
12. Price to Earnings Ratio (Use the Wells Fargo share price)
13. Length:
14. Be sure your explanations and interpretations address the following:
15. Write a summary of explanation for what each ratio indicates for the viability of the bank.