Wells Fargo Financial Performance from Time to Time

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.

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	Assets	Liabilities	Equities
	Billion US Dollars	Billion US Dollars	Billion US Dollars
2006	481	435	46
2007	575	528	47
2008	1,309	1,207	102
2009	1,243	1,129	114
2010	1,258	1,130	128
2011	1,313	1,172	141
2012	1,422	1,264	158
2013	1,527	1,356	171
2014	1,687	1,501	186
2015	1,787	1,593	194
2016	1,930	1,729	201
2017	1,957	1,743	214
2018	1,895	1,698	197
2019	1,927	1,739	188
2020	1,952	1,767	185
2021	1,948	1,757	191
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	Revenue	Net income
	Million US Dollars	Million US Dollars
2007	39,520	8,057
2008	41,877	2,655
2009	88,686	12,275
2010	85,210	12,362
2011	80,948	15,869
2012	86,086	18,897
2013	83,780	21,878
2014	84,347	23,057
2015	86,057	22,894
2016	88,267	22,938
2017	88,398	22,183
2018	86,408	22,393
2019	86,832	1,9715
2020	74,246	3,377
2021	78,492	21,548
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.