Morgan Stanley delivered a solid end to 2024 with revenue of $25.98 billion in Q4, up 7.4% year over year, supported by strength in capital markets activity and advisory services. Net income of $3.71 billion and earnings per share of $2.25 reflected a pronounced improvement in profitability, with operating income expanding to $4.91 billion and an operating margin of 18.9%. Gross margins remained healthy at 57.46%, underscoring a favorable mix and disciplined cost control. Free cash flow reached $10.92 billion, and total cash and investments stood at $401.59 billion, positioning the firm to fund dividends, buybacks, and strategic initiatives.
Key Performance Indicators
Revenue
Increasing
25.98B
QoQ: -1.31% | YoY: 7.40%
Gross Profit
Increasing
14.93B
57.46% margin
QoQ: 4.68% | YoY: 24.11%
Operating Income
Increasing
4.91B
QoQ: 16.23% | YoY: 134.06%
Net Income
Increasing
3.71B
QoQ: 16.50% | YoY: 144.83%
EPS
Increasing
2.25
QoQ: 17.80% | YoY: 161.63%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $25.982 billion in Q4 2024, up 7.40% YoY and down 1.31% QoQ. Gross Profit: $14.928 billion; gross margin 57.46% (YoY +24.11%, QoQ +4.68%). Operating Income: $4.906 billion; margin 18.88% (YoY +134.06%, QoQ +16.23%). Net Income: $3.714 billion; margin 14.29% (YoY +144.83%, QoQ +16.50%). EPS: $2.25 basic, $2.22 diluted (YoY +161.63%, QoQ +17.80%). EBITDA: $6.551 billion; EBITDARatio 0.252. Operating cash flow: $11.800 billion; free cash flow: $10.921 billion. Balance sheet: total assets $1.216 trillion; total liabilities $1.110 trillion; total stockholders’ equity $104.511 billion. Cash and cash equivalents $75.743 billion; cash and short-term investments $401.589 billion; total debt $360.488 billion; net debt $284.745 billion. Liquidity and efficiency metrics indicate a strong capacity to fund activities and return capital. Key returns: ROE 3.55%; net margin 14.29%; payout ratio 42.7%; dividend yield 0.80%. Valuation: P/E 13.28x; P/B 1.89x; P/S 13.11x; P/FCF 18.06x.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
25.98B
7.40%
-1.31%
Gross Profit
14.93B
24.11%
4.68%
Operating Income
4.91B
134.06%
16.23%
Net Income
3.71B
144.83%
16.50%
EPS
2.25
161.63%
17.80%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Net Profit Margin
Excellent
24.70%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
0.31%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.55%
Return on equity suggests inefficient capital allocation
Debt to Equity
High Risk
2.97
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
13.28x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.89x
Price-to-book ratio reasonable for profitable companies
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