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How Does Charles Schwab’s Balance Sheet Look?

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Rise in total assets

Charles Schwab (SCHW) saw a rise in total assets from $223.3 billion as of December 31, 2016, to $230.7 billion as of September 30, 2017. The company reported receivables from dealers, clearing organizations, and brokers of $665 million as of September 30, 2017, compared to $728 million as of December 31, 2016.

Notably, Charles Schwab posted net receivables of $18.4 billion from brokerage clients as of September 30, 2017, compared to $17.1 billion as of December 31, 2016. The company reported other assets of $1.5 billion as of September 30, 2017, compared to $1.4 billion as of December 31, 2016. It reported net intangible assets of $115 million as of September 30, 2017, compared to $144 million as of December 31, 2016.

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Liabilities excluding equity

Total liabilities (excluding equity) of Charles Schwab stood at $212.6 billion as of September 30, 2017, compared to $206.9 billion as of December 31, 2016. The company’s bank deposits stood at $165.2 billion as of September 30, 2017, compared to $163.4 billion as of December 31, 2016.

Charles Schwab reported accrued expenses and other liabilities of $2.2 billion as of September 30, 2017, compared to $2.3 billion as of December 31, 2016. It posted long-term debt of $3.2 billion as of September 30, 2017, compared to $2.8 billion as of December 31, 2016.

Over the last 12 months (LTM), Charles Schwab posted an earnings before interest, tax, depreciation, and amortization (or EBITDA) margin of 43.9%, while peers (XLF) LPL Financial Holdings (LPLA), Bank of New York Mellon, (BK) and Wells Fargo (WFC) posted margins of 14.3%, 45%, and 47.0%, respectively.

Next, let’s compare Charles Schwab’s valuations with its peers.

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