The Charles Schwab Corporation (SCHW) financial analysis and rating

Comparison analysis based on SEC data

Company Name The Charles Schwab Corporation
Industry (SIC) 6211 - Security Brokers, Dealers, and Flotation Companies
Latest report 12/31/2020 (filed 2/24/2021)
Revenue $11,691 million (ranked #5 out of 111 companies in the industry)
Assets $549,009 million (ranked #3)

Financial position and performance

Compared with industry ratios Change during the year

worse

unchanged
Compared with all industry ratios

better

Compare with a competitor

Financial ratios benchmarking

Finanancial ratio Compared
with industry ratios
(62 - Security And Commodity Brokers, Dealers, Exchanges, And Services)
with all industry ratios
Solvency Ratios
Debt ratio 
0.90
0.31
0.90
0.61
Debt-to-equity ratio 
8.79
0.59
8.79
1.07
Interest coverage ratio 
11.29
7.62
11.29
1.22
Liquidity Ratios
Current Ratio 
5.34
2.53
5.34
1.94
Cash Ratio 
5.34
2.33
5.34
0.82
Profitability Ratios
Profit margin 
28.2%
17.6%
28.2%
1.5%
ROE (Return on equity), after tax 
8.5%
9.2%
8.5%
-2.1%
ROA (Return on assets) 
0.8%
2.8%
0.8%
-0.1%
Activity Ratios
Asset turnover (days) 
13196
1434
13196
869
Resulting score -0,3 +0,4

Additional ratios (not used to calculate the resulting score)

Finanancial ratio Compared
with industry ratios
(62 - Security And Commodity Brokers, Dealers, Exchanges, And Services)
with all industry ratios
Profitability Ratios
Gross margin 
99.9%
51.8%
99.9%
41.5%
Operating margin (Return on sales) 
40.4%
21.1%
40.4%
4.8%
Activity Ratios
EBIT $4,718M
EBITDA $6,494M
Price Ratios
Dividend Payout Ratio 
0.39
0.34
0.39
0.27
Earnings per Share (basic) $2.13
Earnings per Share (diluted) $2.12

Auditor's conclusion

We have conducted a comparative analysis of the balance sheet and the income statement of The Charles Schwab Corporation (hereafter – the "Company") for the year 2020 submitted to the U.S. Securities and Exchange Commission (SEC). The primary business activity of the company is Security Brokers, Dealers, and Flotation Companies (SIC code 6211). During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. The averages are calculated using the data from financial statements for the year 2020 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. Calculations and summary conclusions are made in a computerized way using software and methods developed by Consulting financial and analytical company Ankon.

As a result of the analysis of the key financial ratios of the company, we have established the following. The financial condition of The Charles Schwab Corporation in 2020 is worse than the financial condition of half of all companies engaged in the activity "Security Brokers, Dealers, and Flotation Companies"

When compared with the averages for all U.S. industry sectors, the Company shows much better results. This is due to the relatively high performance of businesses engaged in this type of activity relative to the average for all industries. The financial position of The Charles Schwab Corporation is better than that of most listed companies that submit financial statements to the U.S. Securities and Exchange Commission.

Financial position and performance history


Additional data about The Charles Schwab Corporation

Closest competitors

Company USD ($), in Millions
Revenue Assets
BlackRock, Inc. 16,205 176,982
Goldman Sachs Group, Inc. (The) 14,376 1,163,028
JONES FINANCIAL COMPANIES LLLP 10,165 28,320
Raymond James Financial, Inc. 8,368 53,657

See also all industry leaders

Financial data source and analysis principles

The above is a comparative analysis of the financial position and performance of the company. The comparison is based on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). The comparison is performed using the eleven key financial ratios (see table above). Company's financial ratios are compared with the median values of ratios of all companies and of companies within the same industry, and also with the quartiles of those ratios. Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles (-2 – below the first quartile; -1 – between the first and the second quartile; +1 – between the second and the third quartile; +2 – above the third quartile; 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and the quartile closest to the ratio value). To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2.

much better (+1 - +2incl)
better (from 0.11 to +1incl)
about the same (from -0.11incl to +0.11incl)
worse (from -1incl to -0.11)
much worse (from -2incl to -1)
"Change during the year" calculation

Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. The result of the comparison may be as follows:

improved considerably (positive change of more than 1 point)
improved (positive change of less than 1 point)
unchanged (little or no change in score, no more than 0.11 points)
deteriorated (the score has decreased by less than 1 point during the year)
deteriorated considerably (the score has decreased by more than 1 point during the year)


Please note: The presented analysis does not indicate a poor or good financial position of the company, but gives its description relative to other U.S. businesses. For a detailed financial analysis please use "ReadyRatios Financial Analysis" - load the data into the program>>

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