Revenue Performance: The Q4 2024 revenue of $6.651 billion reflects a robust growth trajectory with a year-over-year increase of 45.98% and a quarterly growth of 1.50%. This growth can be attributed to increased client engagement, higher trading volumes, and effective cost management.
Profitability Analysis: The gross profit stood at $5.329 billion with a gross profit margin of 80.12%. Operating income, while down 6.07% year-over-year to $2.305 billion, saw a significant sequential improvement of 25.14%, showing operational efficiencies being realized. Notably, net income increased impressively to $1.84 billion, resulting in an EPS of $0.94, 84.31% higher than the previous year.
Balance Sheet Health: The company maintains a solid balance sheet with cash and cash equivalents of $42.083 billion and total assets amounting to $479.843 billion. With a total debt of $45.134 billion, Schwab shows a debt-to-equity ratio of 0.950, indicating manageable leverage relative to equity.