BB&T Company’s financial analysis for 2007 and 2015 report indicates that the company got a lot of funding from the loans and leases. In 2007 it got 59.19 % of the total funding while in 2015 it got 36.39% of its funds from the same (Clinton 450). The retained earnings stood at 4.5% in 2007 and 3.6% in 2015. Most of its financing comes from loans. The table below illustrates the calculations;
Table 1. Funding Sources.
The company’s asset composition revealed that in 2007, it had 75.59% Goodwill. Held-to-maturity securities were 62.67% while Goodwill was 27.60%. Other investing activities performed poorly (Hastings 60). The asset composition grew by 350.75%. The following table gives the information in detail;
Table 2. Asset Composition.
In 2007 the unearned income was 91.43% of the total revenue while in 2015 Interest checking was 80.77% (Hughes 280). There was a drop in revenue of 68.36% by 2015.
Table 3. Revenue Composition.
In 2007, the company had 66.8% income from sales and disposals (Lee 216). It increased this to 69.83% in 2015. The table below illustrates the profit composition.
Table 4. Profit Composition.
Issuance of loans dominated the assets portfolio and earned the company interest incomes (Paul, Clarke, and Grill 150). The company also financed most of its activities using loans (Robinson 40). The financing activities improved the company’s income. Losses were realized from the investing activities.
References
Clinton, Bill. Back to Work. New York, NY: Alfred A. Knopf, 2011. Print.
Hastings, N. A. J. Physical Asset Management. London, UK: Springer, 2010. Print.
Hughes, Peter. Tax Planning For Businesses and their Owners. London, UK: Thorogood Pub., 2009. Print.
Lee, Jay. Engineering Asset Management 2011. London, UK: Springer, 2014. Print.
Paul, Christopher, Colin P Clarke, and Beth Grill. Victory has a Thousand Fathers. Santa Monica, CA: RAND, 2010. Print.
Robinson, Thomas R. International Financial Statement Analysis. Hoboken, N.J.: John Wiley & Sons, 2009. Print.