My Finance 571 paper (unedited)

Shareholder analysis: FAQ Charles Schwab

David Vaughn

Phoenix University



James Traylor

Shareholder analysis: FAQ Charles Schwab

            For the financial interest of all the stakeholders within the Charles Schwab company. I feel that the numbers that I pulled from the previous years are strong enough that this company will be a worthy addition to their portfolios. But despite that as we move forward I am going to report the years 2017 and 2016 and use the information for the purposes of discussing financial information. This will include trends and possible events that may have effected the company and investments in those years. So the purpose of this paper is to go over the financial statements and present a FAQ to create an analysis for shareholders.

Introduction to risk

            “Risk and uncertainties effecting supply chains are associated with demand, suppliers, cost, delivery, natural disasters, human failures, technical boundaries and cyber incidents that can result in significant losses to society.” (Fagundes, (2020))  I find this more pertinent to current economic situations than say 2017, but I feel that the entire concept of risk and the connections between supply chain and economy are there. I feel that because Charles Schwab is influenced by the actions of consumers, the effect can be that when there are conditions that effect other faucets of the economy (supply chain) Charles Schwab investors may feel It as well. Explaining it in this way means “if one company does not sell well it could effect the revenue or profitability of Charles Schwab by effecting finance”. This can be referenced by looking at the numbers from 2017 and 2020 (2020 $10.348B) and (2017 $8,168B) (Annual Financials for Charles Schwab Corp.-Revenue for Charles Schwab 2016 and 2017, 2020). Even though in some cases we can say correlation does not mean causation the numbers make a strong point. So let us move on to economic conditions which may show possible indicators.

Economic factors

            Let us begin with the definition, “Economic conditions refer to the state of macroeconomic variables and trends in a country at a point in time. Such conditions may include GDP growth potential, the unemployment rate, inflation, and fiscal and monetary policy orientations” (Economic Conditions – Investopedia, 2020).

            While I feel that all of these are important factors that effect the economy, Fiscal and monetary policy will be what this FAQ will focus on more. The decision is based upon changes that may have effected finance during the 2016 and 2017 year. But before I begin I want to briefly cover the necessary information concerning GDP (the total value of goods produced and services provided in a country during one year) (gross domestic product, 2020) and the unemployment rate.

            The totals of revenue in 2016 for Charles Schwab were 7.63B and 2017 8.96B respectively (Annual Financials for Charles Schwab Corp.-Revenue for Charles Schwab 2016 and 2017, 2020). Gross Domestic product in the year 2016 was at $17,867.19 billon U.S. dollars at years end and in (2017) $17,977.299 in the beginning of the year and at years end $18,359.432. The unemployment rate for both years were (2016 (4.9%)) and (2017 (4.7%)) (Gross domestic product, 2020) (Unemployment rate, 2020). These are factors that effect all of the economy. These large scale factors make a redundant point and may correlate but so many different aspects could be involved it may be pointless to discuss. Thus, I do feel that these effected Charles Schwab but I feel that GDP may not necessarily be responsible for all of the changes in their finances*Charles Schwab looked to make roughly half of GDP those years (possibly inaccurate). Maybe the Unemployment rate may have influenced revenue but once again too many outside factors for this to be a plausible argument. Moving on…

            With a new administration in office I thought it would be interesting to look over any fiscal policies for those years. Fiscal meaning relating to government revenue, especially taxes or legal or treasury official in some countries. (Bing search query Fiscal, 2020). So, looking over the fiscal policies for the years (2016-2017) maybe I can see some of the things that effected the company those years. I then noticed in a late edition of Forbes (Holmes, 2017-2020). “For the third time in two years, the Federal Reserve lifted interest rates 0.25 percent last week following the previous week’s phenomenal jobs report  (Holmes, 2017-2020).” Coincedence, in those years 2016 and 2017 those policies may have just been enacted and in turn effecting finance. And according to (Brealy, 2020), which states when interest rates rise bond prices fall. So, for me that concluded most of what I needed to surmise what I suspected.

            What this all says is that there are closer correlations in Fiscal policies that may be responsible for the loss of revenue in those years.


            Next we can do the overall analysis of those numbers that were shown in the previous presentation. Beginning with revenues, in (2016) Charles Schwab recorded $7.63B and in 2017 $8,168B which should be positive numbers but were decreases than in previous years. Currently Charles Schwab shows revenues of $10.348B which is an increase from (2016-2017) but still not as strong as last year based on the reports (Revenue Charles Schwab revenue 2006 – 2020, 2020). I then Looked over the growth of the company Charles Schwab and growth looks to negative this year. In comparison to the down years (2016-2017) which still showed some promise. (Revenue Charles Schwab revenue 2006 – 2020, 2020)

            Other ratios such as return on assets calculated as

 (Brealy, 2020) this particular formula shows the profitability of a company. Charles Schwab ROA at years end was .85% in (2016) and in (2017) was .95% at years end. In 2020 it is now .92% (Charles Schwab ROA, 2020). Currently prices for a piece of Charles Schwab stock is 36.03 an annual change of -24.24%, in (2016) 29.9858 and in (2017) 42.4600 a annual change of 30.15% in those two years (Charles Schwab 31 year stock history, 2020).


            What does this mean for an investor? In my opinion it may mean nothing for the stakeholders of Charles Schwab. This conclusion is based upon this, During those years researched (2016-2017) Charles Schwab investors may have been effected by newer Fiscal policies (Global economic conditions). For this current year (2020) the pandemic (global economic conditions) (Fagundes, (2020)) These economic conditions may have caused market volatility and risk to be higher causing poorer numbers for this year.

            Not including a recession which this presentation does not cover.  I think that Charles Schwab is a very solid investment. Unless a global emergency arises, this company may remain profitable. Most analyst would say to hold this particular piece of stock and I would agree.


Annual Financials for Charles Schwab Corp.-Revenue for Charles Schwab 2016 and 2017. (2020, 9 20). Retrieved from Bing search query-Marketwatch:

Bing search query Fiscal. (2020, 9 20). Retrieved from Bing:

Brealy, D. (2020). Fundamentals of corporate finance. McGraw-Hill.

Charles Schwab 31 year stock history. (2020, 9 20). Retrieved from Macrotrends:

Charles Schwab ROA. (2020, 9 20). Retrieved from Macrotrends:

Economic Conditions – Investopedia. (2020, 9 19). Retrieved from investopedia:

Fagundes, M. T. ((2020)). Decision making models and Support systems for supply chain Risk: Literature Mapping and Future Research Agenda. European Research on Managment and business Economics, 26(2). 63-70.

gross domestic product. (2020, 9 20). Retrieved from bing search :

Gross domestic product. (2020, 9 20). Retrieved from Fred economic research:

Holmes, F. (2017-2020). Americas new emphasis on fiscal policy. Forbes market, 1-2.

Revenue Charles Schwab revenue 2006 – 2020. (2020, 9 5). Retrieved from Macrotrends:

Unemployment rate. (2020, 9 20). Retrieved from Fred Economic research:

Published by David Vaughn

I am finished with my Graduate degree now I am hoping to enter into Doctoral college this fall now after starting and restarting transferring then starting again, but now unsure of my funds. I am in College now for my Phd and doing ok. This was my first website and now I have a radio station connected to it. The radio station is fanbaseradio and is apart of another website I now own. I am hoping to continue to grow my network and develop a marketing firm. kewlbeer'd marketing affiliate of fanbase.

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