Wells Fargo Financial Performance from Time to TimeWells Fargo Financial

Wells Fargo Financial Performance from Time to Time-Wells Fargo is an American Based Multinational company that has a major role in the USA and The World. Historically, it was founded by Henry Wells and William Fargo. Officially, this company has its main headquarters in San Francisco, California, and New York.

Wells Fargo Financial Performance from Time to Time- Performance of Wells Fargo

Now this company has 4,800 retail bank branches in the US, with 33 million digital active consumers, and 27.3 million actives users.  Based on the employee, the company employs 268 thousand people. In Wealth & Investment Management (WIM), this company has 12,300 advisors that serve 2.8 million clients. Overall, At the end of 2021, total client assets reached a record $2.2 trillion.

The Assets, Liabilities, and Equities of Wells Fargo

Years AssetsLiabilitiesEquities
Billion US Dollars Billion US Dollars Billion US Dollars
200648143546
200757552847
20081,3091,207102
20091,2431,129114
20101,2581,130128
20111,3131,172141
20121,4221,264158
20131,5271,356171
20141,6871,501186
20151,7871,593194
20161,9301,729201
20171,9571,743214
20181,8951,698197
20191,9271,739188
20201,9521,767185
20211,9481,757191
Source : Wells Fargo Annual Report, 2006-2021

Based on the financial positions, from Balance Sheets, this company is still in a good position. In 2006, the assets were around 481 billion US Dollars, with Equity of around 46 billion US Dollars. Meanwhile, in 2021, the assets become 1,948 billion US dollars and Equities become 191 billion US Dollars.

The Revenue and Net Income of Wells Fargo

Years RevenueNet income
Million US Dollars Million US Dollars
200739,5208,057
200841,8772,655
200988,68612,275
201085,21012,362
201180,94815,869
201286,08618,897
201383,78021,878
201484,34723,057
201586,05722,894
201688,26722,938
201788,39822,183
201886,40822,393
201986,8321,9715
202074,2463,377
202178,49221,548
Source : Wells Fargo Annual Report, 2006-2021

The business performance, obtained from the income statement from 2007-to 2021, showed constant revenue and income with slow growth in both.  In 2007, the revenue of Wells Fargo is just 39 billion US Dollars, with a net income of around 8 billion US Dollars. Meanwhile, in 2021, the revenue becomes 78 billion US Dollars and the net income becomes 21 billion US Dollars.

Wells Fargo Financial Performance - Debt to Equity Ratio (DER). Debt to Asset Ratio (DAR), and Net Profit Margin (NPM)

Based on the Financial Performance of the Balance Sheet and Income Statement from 2006 to 2021, some financial ratios can be calculated. Debt to Equity Ratio (DER), Debt to Asset (DAR), and Net Profit Margin (NPM). Debt to Equity (DER) and Debt to Asset (DAR) are parameters that can be measured the financial structure and fundamentals of the company. The less ratio of financial ratio of DER dan DAR, the healthier or stronger of the company. Based on the Balance sheet of the company from 2006 to 2021, the Debt equity ratio (DER) of Wells Fargo is about 9.0. Meanwhile, the Debt to Asset ratio (DAR) of Wells Fargo is about 0.9.

In the other aspect of the financial ratio, Net Profit Margin can measure the efficiency of the business performance of the company. The bigger value of the NPM ratio, the more effective the company doing its business because the cost that the company has sacrificed is very small. They can’t need more expenditure to get more profit / net income.  In this company, Wells Fargo, the average value of Net Profit Margin is about 0.2. Basically, this value means that the net income of this company is about 20% of the total revenue. Or in the other interpretation, every one dollar of revenue can become a net income of about 0,2 dollars.   


Bibliography of Wells Fargo Financial Performance from Time to Time

Wells Fargo. 2022. Annual Report and Proxy Statement. Accessed via

https://www.wellsfargo.com/about/investor-relations/annual-reports/  on April 5th, 2022.

Wikipedia. 2022. Wells Fargo. Accessed via https://en.wikipedia.org/wiki/Wells_Fargo  on April 5th, 2022

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