Revenue Analysis
Total and Operating Revenue: CFG’s Operating Revenue has shown a steady increase over the examined period, starting from $1,980,000,000 in September 2023 quarter to $1,956,000,000 by March 2024. This suggests a slight dip towards the end of the period.
Cost Management
Operating Expense: The Selling General and Administration expense increased from $714,000,000 in June 2023 to $802,000,000 by March 2024, indicating higher operational costs. General and Administrative expenses also grew from $658,000,000 to $767,000,000 over the same period.
Profitability Analysis
Pretax Income: CFG’s Pretax Income showed growth from $612,000,000 in June 2023 to $664,000,000 in March 2023 and then slightly decreased to $430,000,000 by March 2024.
Net Income: Net Income also reflects an upward trend initially from $478,000,000 in June 2023 to $511,000,000, before significantly falling to $334,000,000 by March 2024.
Cash Flow Indicators
Reconciled Depreciation: CFG’s Reconciled Depreciation has risen from $112,000,000 in June 2023 to $118,000,000 by March 2023 and then reduced to $102,000,000 by March 2024.
Interest Expense: Interest Expense decreased from $943,000,000 in June 2023 to $759,000,000 by March 2023 and climbed back up to $1,168,000,000 by March 2024.
Taxation
Tax Rate: The tax rate saw variations, peaking at 0.2297 in March 2023 and then reducing to 0.2228 by March 2024.
Tax Provision: The Tax Provision rose from $134,000,000 in June 2023 to $153,000,000 by March 2023, dropping significantly to $96,000,000 by March 2024.
Shareholder Metrics
Diluted and Basic EPS: Earnings per Share showed an improvement initially from $0.92 diluted in June 2023 to $1.00 by March 2023 and then sharply dropped to $0.65 by March 2024. The basic EPS follows a similar trend.
Net Income Available to Common Stockholders: This measure experienced substantial variations, beginning at $444,000,000 in June 2023 and escalating to $488,000,000 by March 2023, before descending to $304,000,000 by March 2024.
Conclusion
CFG has demonstrated fluctuating financial performance over the past three years. While there was growth in revenue and net income until early 2023, there was a notable decline by March 2024. Rising operational costs and significant interest expenses could be factors impacting profitability. Tax provisions have also fluctuated, possibly affecting net income. Recommendations include focusing on reducing operating expenses and managing debt more efficiently to enhance profits and shareholder value.