The Goldman Sachs Group, Inc (NYSE:GS), a financial institution, provides range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management.
Goldman Sachs generates $4.5 billion in net earnings in the fourth quarter, a huge increase over the fourth quarter of 2019. Net revenue was $11.7 billion in the quarter, an 18% year-over-year increase. The company’s revenue is $44.5 billion, a 22% year-over-year increase. Goldman Sachs grows all of its business lines, led by investment banking. This segment generates a record $9.42 billion in revenue for the full year, driven by a record level of equity underwriting and the second-highest level ever of debt underwriting. It has the most completed mergers and acquisitions (M&A) of any firm last year. The M&A expects to increase in 2021.
Investment banking only represents about 21% of Goldman Sachs’ revenue. Global markets, the fixed income and equity trading arm, makes up 48%, while asset management accounts for 18% and consumer and wealth management represents 13%..
With market-leading positions in two segments, investment banking and global markets, and a focus on growing its banking business, Goldman Sachs will continue to grow over the long term. It has a great balance sheet with plenty of cash, about $155 billion and excellent return on equity (ROE). Goldman Sachs is the best value stock in the financial service sector.
GS is top dog in finance.
Top dog of Financial firm