Business Analysis of Goldman Sachs

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Goldman Sachs

GOLDMAN SACHS

Business Overview

The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. It operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, such as debt and equity underwriting of public offerings and private placements of various securities and other financial instruments, as well as derivative transactions with public and private sector clients. The Institutional Client Services segment is involved in client execution activities related to making markets in cash and derivative instruments for interest rate products, credit products, mortgages, currencies, commodities, and equities; and provision of securities services comprising financing, securities lending, and other prime brokerage services, as well as markets in and clears client transactions on primary stock, options, and futures exchanges. The Investing & Lending segment invests in and originates longer-term loans to provide financing to clients; and makes investments in debt securities and loans, public and private equity securities, and infrastructure and real estate entities, as well as provides unsecured loans to individuals through its online platform. The Investment Management segment offers investment management products and services; and wealth advisory services consisting of portfolio management and financial counseling, and brokerage and other transaction services. The company serves corporations, financial institutions, governments, and individuals. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

Goldman Sachs

Goldman Sachs


R&P Rank: 85
Sector: Financial Services
Industry:Investment Services
H.Q Location:New York
Website: www.goldmansachs.com
Company Address:
200 WEST STREET, NEW YORK NY 10282
Ph:212-902-1000

Business Analysis of Goldman Sachs

The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Goldman Sachs compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Goldman Sachs to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Goldman Sachs with an interactive chart.

  1. Revenue Growth: Goldman Sachs reported a revenue growth of -9.5% year-on-year during 2016. Investment Services Industry grew at -6.5% in the same period
  2. COGS share of Revenues: Goldman Sachs COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Goldman Sachs R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Goldman Sachs spent 66.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Investment Services industry average SG&A spending in the same period was 54.3%
  5. Inventory share of Revenues: Goldman Sachs Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Goldman Sachs invested 615.7% of its total revenues on Accounts Payable (A/P) Investment Services industry average Accounts Payable investment in the same period was 214.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Goldman Sachs invested 215.1% of its total revenues on Accounts Receivable (A/R). Investment Services industry average Accounts Receivable investment in the same period was 79.0%
  8. PP&E share of Revenues: Goldman Sachs PP&E share of Revenues details are not available because either company does not share the data or we do not have it
  9. Intangibles share of Revenues: Goldman Sachs Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Goldman Sachs Net Margins in the year 2016 were 24.2%. Investment Services industry average Net Margins in the same period were 17.8%

Sector and Industry Association of Goldman Sachs

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Goldman Sachs is associated with Financials Sector Group, Financial Services Sector, and Investment Services Industry.

Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:

  • Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
  • Consumer Finance industry includes companies providing credit services and mortgage finance services.
  • Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
  • Financial News, Research and Data industry includes companies providing payments and transaction processing services.

Industry Ranking of Goldman Sachs

With $30.6 billion revenues, Goldman Sachs ranked number 2 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Investment Services industry by revenues during 2016 were:

  1. Morgan Stanley ($34.6 billion)
  2. Goldman Sachs ($30.6 billion)
  3. Bank Of New York Mellon ($15.2 billion)
  4. INTL FCStone ($14.8 billion)
  5. Ameriprise Financial ($11.7 billion)
  6. BlackRock ($11.2 billion)
  7. State Street ($10.2 billion)
  8. Charles Schwab ($7.5 billion)
  9. Franklin Templeton Investments ($6.6 billion)
  10. Intercontinental Exchange ($6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Goldman Sachsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of goldman-sachs

Morgan Stanley (MS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Morgan Stanley with $35 billion revenues in the year 2016 was the number 1 Investment Services company. Read this report to know the top competitors of Morgan Stanley and identify growth and cost optimization opportunities of Morgan Stanley

Bank Of New York Mellon (BK) Business Analysis – Analyze Historical...

Bank Of New York Mellon Corp with $15 billion revenues in the year 2016 was the number 3 Investment Services company. Read this report to know the top competitors of Bank Of New York Mellon and identify growth and cost optimization opportunities of Bank Of New York Mellon

INTL FCStone (INTL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

INTL FCStone Inc. with $15 billion revenues in the year 2016 was the number 4 Investment Services company. Read this report to know the top competitors of INTL FCStone and identify growth and cost optimization opportunities of INTL FCStone

Ameriprise Financial (AMP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Ameriprise Financial Inc with $12 billion revenues in the year 2016 was the number 5 Investment Services company. Read this report to know the top competitors of Ameriprise Financial and identify growth and cost optimization opportunities of Ameriprise Financial

BlackRock (BLK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

BlackRock Inc. with $11 billion revenues in the year 2016 was the number 6 Investment Services company. Read this report to know the top competitors of BlackRock and identify growth and cost optimization opportunities of BlackRock

State Street (STT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

State Street Corp with $10 billion revenues in the year 2016 was the number 7 Investment Services company. Read this report to know the top competitors of State Street and identify growth and cost optimization opportunities of State Street

Revenues Analysis

Goldman Sachs (GS) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Goldman Sachs Group Inc (GS) from 2012 to 2016. Goldman Sachs generated a total of $30.6 billion revenues during 2016. Goldman Sachs reported a revenue growth of -9.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Goldman Sachs (GS) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Goldman Sachs Group Inc (GS) from 2002 to 2016. Goldman Sachs generated a total of $30.6 billion revenues during 2016. Goldman Sachs reported a revenue growth of -9.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Goldman Sachs (GS) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Goldman Sachs Group Inc (GS) revenue growth with Investment Services industry growth during the last five years from 2012 to 2016. Goldman Sachs reported a revenue growth of -9.5% year-over-year during 2016. The Investment Services industry growth was -6.5% year-over-year during 2016. Goldman Sachs growth was slower than the industry during 2016.

Profit Analysis

Goldman Sachs (GS) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Goldman Sachs Group Inc (GS) from 2012 to 2016. Goldman Sachs reported a total net income of $7.4 billion during 2016. Goldman Sachs generated a total of $30.6 billion revenues during 2016. Goldman Sachs net profit margin was 24.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.