Analyzing American Express’s Asset Balances
Rise in total assets
American Express (AXP) had total asset balances of $158.9 billion on December 31, 2016, and $167.0 billion on June 30, 2017. Its investment securities and total cash and cash equivalents were the major contributors to the increase in its total asset balances. On December 31, 2016, the company had investment securities of $3.2 billion, and on June 30, 2017, this figure stood at $3.4 billion.
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However, American Express had total cash and cash equivalents of $25.2 billion on December 31, 2016, and $30.4 billion on June 30, 2017, of which $26.4 billion was interest-bearing deposits and $1.4 billion was short-term investment securities. The remaining $2.7 billion represented cash on hand and cash due from banks.
On December 31, 2016, and June 30, 2017, American Express had card member loan balances of $64.0 billion and $64.7 billion, respectively, and other loan balances of $1.4 billion and $1.9 billion. It had investment securities of $3.2 billion on December 31, 2016, and $3.4 billion on June 30, 2017.
Return on invested capital
American Express’s return on invested capital stood at 1.4% on June 30, 2017. Other consumer financial companies’ (XLF) returns on invested capital that day were as follows: