Goldman Sachs Revenues And Revenue Growth From 2012 To 2016

Revenue growth is the most commonly analyzed financial metric. Revenue Growth is the percent increase (or decrease) of a company’s revenue between two time periods. It is computed by using the following formula: ((revenues during the time period two – revenues during the time period one) / revenues during the time period one)*100. If the time periods are two consecutive years, then the revenue growth is referred to as the annual revenue growth year-over-year. If the time periods are two consecutive quarters, then the revenue growth is referred to as the quarterly revenue growth quarter-over-quarter. If the time periods refer to the same quarter in the two consecutive years, then the revenue growth is referred to as quarterly revenue growth year-over-year. In case the time periods are two non-consecutive years, then the revenue CAGR (Commutative Annual Growth Rate) is computed.

Revenue growth analysis is important for a number of reasons. First, it helps in understanding how a business is performing. If the revenue growth rates are positive, it means the business is performing well and the revenues are increasing. If the revenue growth rates are negative, it means the revenues are declining and the company needs to take measures to increase them. If they don’t, the company will continue to shrink. Second, a company’s historical revenue growth analysis along with the market size and market share analysis helps in forecasting the future revenues of a company. Third, a comparison of a company’s growth rates with its competitors helps in determining who is winning more business. A revenue growth higher than the industry average translates into increasing market share. Companies with very high revenue growth rates have the potential to be the industry disrupters.

GOLDMAN SACHS RANKING

With $30.6 billion revenues, Goldman Sachs ranked number 85 in the R&P; Research list of top-3000 public companies in the US by revenues during 2016. Each one of the top-3000 companies generated more than $50 million of annual revenues during 2016.

The top-20 companies in the US by revenues during 2016 were:

1. Walmart ($482.1 billion)
2. ExxonMobil ($226.1 billion)
3. Berkshire Hathaway ($223.6 billion)
4. Apple ($215.6 billion)
5. McKesson ($190.9 billion)
6. UnitedHealth Group ($184.8 billion)
7. CVS Health ($177.5 billion)
8. General Motors ($166.4 billion)
9. AT&T; ($163.8 billion)
10. Ford Motor ($151.8 billion)
11. AmerisourceBergen ($146.8 billion)
12. Amazon ($136 billion)
13. Verizon ($126 billion)
14. General Electric ($123.7 billion)
15. Cardinal Health ($121.5 billion)
16. Costco ($118.7 billion)
17. Walgreens Boots Alliance ($117.4 billion)
18. Chevron ($114.5 billion)
19. Kroger ($109.8 billion)
20. Express Scripts Holding ($100.3 billion)

For the purpose of performance benchmarking of a company with a sector or industry average, R&P; Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

For example, Healthcare sector group is comprised of Life Sciences sector and Healthcare Services sector. Life Sciences sector is comprised of following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments. Healthcare Services sector is comprised of following industries: Medication Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services.

Goldman Sachs is associated with Financials Sector Group, Financial Services Sector and Investment Services Industry.

With $30.6 billion revenues, Goldman Sachs ranked number 12 of all the companies in the US Financials sector group. There were a total of 705 public companies in the US Financials sector group that had revenues greater than $50 million during 2016.

The top-10 companies in the US Financials sector group by revenues during 2016 were:

1. Berkshire Hathaway ($223.6 billion)
2. JPMorgan Chase ($95.7 billion)
3. Wells Fargo ($84.5 billion)
4. Bank of America ($83.7 billion)
5. Citigroup ($69.9 billion)
6. MetLife ($63.5 billion)
7. Prudential Financial ($58.8 billion)
8. AIG ($52.4 billion)
9. Allstate ($36.5 billion)
10. Morgan Stanley ($34.6 billion)

Financials sector group is comprised of the following sectors: Banking; Insurance; Financial Services; Real Estate & REITs.

With $30.6 billion revenues, Goldman Sachs ranked number 2 of all the companies in the US Financial Services sector. There were a total of 210 public companies in the US Financial Services sector that had revenues greater than $50 million during 2016.

The top-10 companies in the US Financial Services sector by revenues during 2016 were:

1. Morgan Stanley ($34.6 billion)
2. Goldman Sachs ($30.6 billion)
3. American Express ($30.1 billion)
4. Capital One Financial ($19 billion)
5. Bank Of New York Mellon ($15.2 billion)
6. Visa ($15.1 billion)
7. INTL FCStone ($14.8 billion)
8. Ameriprise Financial ($11.7 billion)
9. First Data ($11.6 billion)
10. BlackRock ($11.2 billion)

Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:

• Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
• Consumer Finance industry includes companies providing credit services and mortgage finance services.
• Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
• Financial News, Research and Data industry includes companies providing payments and transaction processing services.

With $30.6 billion revenues, Goldman Sachs ranked number 2 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Investment Services industry by revenues during 2016 were:

1. Morgan Stanley ($34.6 billion)
2. Goldman Sachs ($30.6 billion)
3. Bank Of New York Mellon ($15.2 billion)
4. INTL FCStone ($14.8 billion)
5. Ameriprise Financial ($11.7 billion)
6. BlackRock ($11.2 billion)
7. State Street ($10.2 billion)
8. Charles Schwab ($7.5 billion)
9. Franklin Templeton Investments ($6.6 billion)
10. Intercontinental Exchange ($6 billion)

COMPANIES SEGMENTATION

To identify and analyze high/low growth or most/least profitable similar-size companies in different sectors or industries, R&P; research classifies all companies into different segments based upon their revenues, revenue growth, and net profit margins.

Based upon their annual revenues, the companies are classified into one of the following four segments:

1. Mega companies, having revenues greater than $50 billion.
2. Very Large companies, having revenues between $10 billion and $50 billion.
3. Large companies, having revenues between $1 billion and $10 billion.
4. Mid-size companies, having revenues between $50 million and $1 billion.

With $30.6 billion revenues, Goldman Sachs was in the Very Large companies revenue segment during 2016. There were a total of 239 companies in the Very Large companies revenue segment during 2016.

Based upon their annual revenue growth, the companies are classified into one of the following eight segments:

1. Very High positive growth companies, having annual revenue growth greater than 50%.
2. High positive growth companies, having annual revenue growth between 20% and 50%.
3. Medium positive growth companies, having annual revenue growth between 5% and 20%.
4. Low positive growth companies, having annual revenue growth between 0% and 5%.
5. Low negative growth companies, having annual revenue growth between -5% and 0%.
6. Medium negative growth companies, having annual revenue growth between -20% and -5%.
7. High negative growth companies, having annual revenue growth between -50% and -20%.
8. Very High negative growth companies, having annual revenue growth less than -50%.

With -9.5% revenue growth year-over-year, Goldman Sachs was in the Medium negative revenue growth segment during 2016. There were a total of 448 companies in the Medium negative revenue growth segment during 2016. Of the US top-3000 companies, 1985 (nearly two-third of the total) had positive revenue growth and 1015 (nearly one-third of the total) had negative revenue growth during 2016.

Based upon their annual net profit margin, the companies are classified into one of the following eight segments:

1. Very High positive margin companies, having net profit margin greater than 50%.
2. High positive margin companies, having net profit margin between 20% and 50%.
3. Medium positive margin companies, having net profit margin between 5% and 20%.
4. Low positive margin companies, having net profit margin between 0% and 5%.
5. Low negative margin companies, having net profit margin between -5% and 0%.
6. Medium negative margin companies, having net profit margin between -20% and -5%.
7. High negative margin companies, having net profit margin between -50% and -20%.
8. Very High negative margin companies, having net profit margin less than -50%.

With a net margin of 24.2%, Goldman Sachs was in the High positive net profit margin segment during 2016. There were a total of 397 companies in the High positive net profit margin segment during 2016. Of the US top-3000 companies, 2244 (nearly three-fourth of the total) had positive net profit margin and 756 (nearly one-fourth of the total) had negative net profit margin during 2016.

COMPANY BUSINESS SUMMARY

The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other prime brokerage services, as well as markets in and clears client transactions on primary stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans to provide financing to clients; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured loans to individuals through its online platform. The Investment Management segment offers investment management products and services; and wealth advisory services consisting of portfolio management and financial counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

DATA SOURCE

The chart and the data on this page are sourced from the R&P; Research Industry Intelligence Platform. The platform provides the key financial metrics for all the public companies in the United States. The platform empowers users to compare last five or 15 years financial data of a company with the other companies or the industry averages. This benchmarking exercise yields powerful insights that can drive better business decisions.

INDUSTRY PEERS AND COMPETITORS OF GOLDMAN SACHS

Morgan Stanley (MS) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

Morgan Stanley with $35 billion revenues in the year 2016 was the number 1 Investment Services company. Read this report to know the top competitors of Morgan Stanley and identify growth and cost optimization opportunities of Morgan Stanley

Bank Of New York Mellon (BK) Business Analysis – Analyze Historical…

Bank Of New York Mellon Corp with $15 billion revenues in the year 2016 was the number 3 Investment Services company. Read this report to know the top competitors of Bank Of New York Mellon and identify growth and cost optimization opportunities of Bank Of New York Mellon

INTL FCStone (INTL) Business Analysis – Analyze Historical Performance, Strategic Priorities,…