Earnings Analysis for SYF

Revenue Analysis

Total and Operating Revenue: SYF’s revenue has seen fluctuations over the past periods. From Q1 2023 ($3,199,000,000) to Q1 2024 ($4,798,000,000), there has been a notable increase in total revenue, representing growth as the company advances through the fiscal year.

Cost Management

Operating Expenses: The data shows a variable trend in selling, general and administrative expenses, with an increase observed from $582,000,000 in Q1 2023 to $621,000,000 in Q1 2024. This suggests rising operational costs.

Profitability Analysis

Pretax Income: There was significant growth in pretax income, from $790,000,000 in Q1 2023 to $1,708,000,000 by Q1 2024. This indicates improved profitability before taking tax into account.

Net Income: Net income also showed impressive growth, moving from $601,000,000 in Q1 2023 to $1,293,000,000 by Q1 2024, emphasizing an enhanced bottom line.

Cash Flow Indicators

Reconciled Depreciation: Depreciation expenses have stayed relatively stable, slowly increasing from $111,000,000 in Q1 2023 to $119,000,000 by Q1 2024. This indicates ongoing asset depreciation without major acquisitions or disposals.

Interest Expense: The interest expense has climbed markedly from $735,000,000 in Q1 2023 to $1,163,000,000 in Q1 2024, which could reflect increased borrowing or higher interest rates impacting the firm.

Taxation

Tax Rate: The effective tax rate for SYF has varied, from 23.9% in Q1 2023 to 24.3% in Q1 2024.

Tax Provision: The tax provision has grown from $189,000,000 in Q1 2023 to $415,000,000 by Q1 2024, in line with increased pretax income. This rise reflects the company’s growing fiscal obligations as it earns more.

Shareholder Metrics

Diluted EPS: There has been a substantial increase in diluted EPS, from $1.35 in Q1 2023 to $3.14 by Q1 2024, showing enhanced earnings per share for stockholders.

Net Income Available to Common Stockholders: This metric has grown significantly from $590,000,000 in Q1 2023 to $1,282,000,000 in Q1 2024, highlighting increased profitability available to common shareholders.

Conclusion

SYF has demonstrated strong growth and enhanced profitability over the reported periods. Increased revenue, management of operational costs, and rising net income available to common stockholders are indicative of successful strategies being deployed. However, growing interest expenses and higher tax burdens suggest areas where financial management should remain vigilant. Continued strategic oversight will be essential to maintain and accelerate this growth trajectory.

Appendices

Data used in this analysis is sourced directly from SYF’s financial reports over the last three years.