SCHW Q4 2019 Earnings Report — The Charles Schwab Corporation Revenue & Financial Results | Market Cap Arena

The Charles Schwab CorporationSCHW

Q4 2019 Earnings

Reported February 26, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2019	Q3 2019	Q4 2018	QoQ Change	YoY Change
Revenue	$2.8B	$3.0B	$3.0B	-6.7%	-6.2%
Op. Income	$1.1B	$1.2B	$1.2B	-10.0%	-8.1%
Gross Margin	93.9%	91.2%	90.3%	2.7pp	3.7pp
Net Margin	30.7%	32.0%	31.6%	-1.3pp	-0.9pp
EPS (Diluted)	$0.62	$0.70	$0.65	-11.4%	-4.6%
Free Cash Flow	$4.1B	$5.2B	$7.6B	-20.9%	-46.1%

Revenue Flow

Item	Amount
REVENUE	$2.8B
Cost of Revenue	$168M
GROSS PROFIT	$2.6B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$992M
Other Expenses	$502M
Operating Expenses	$1.5B
Cost & Expenses	$1.7B
OPERATING INCOME	$1.1B
Interest Income	$1.8B
Interest Expense	$168M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$260M
Net Income from Continuing Ops	$852M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$852M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$801M
D&A	$94M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$2.8B
Cost of Revenue	$168M
GROSS PROFIT	$2.6B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$992M
Other Expenses	$502M
Operating Expenses	$1.5B
Cost & Expenses	$1.7B
OPERATING INCOME	$1.1B
Interest Income	$1.8B
Interest Expense	$168M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$260M
Net Income from Continuing Ops	$852M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$852M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$801M
D&A	$94M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$852M
Depreciation & Amortization	$94M
Stock-Based Compensation	$52M
Deferred Income Tax	$0
Other Non-Cash Items	$238M
Change in Working Capital	$3.1B
OPERATING CASH FLOW	$4.3B
Capital Expenditure	-$193M
Acquisitions (Net)	$0
Purchases of Investments	-$11.7B
Sales/Maturities of Investments	$12.0B
Other Investing Activities	-$1.4B
NET CASH FROM INVESTING	-$1.3B
Net Debt Issuance	$0
Common Stock Repurchased	-$256M
Common Dividends Paid	-$252M
Other Financing Activities	$10.8B
NET CASH FROM FINANCING	$10.3B
FREE CASH FLOW	$4.1B
Net Change in Cash	$13.3B

Balance Sheet

Item	Amount
Cash & Equivalents	$29.3B
Short-Term Investments	$61.4B
Net Receivables	$23.1B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$113.9B
PP&E (Net)	$2.7B
Goodwill	$1.2B
Intangible Assets	$128M
Long-Term Investments	$197.5B
Tax Assets	$0
Other Non-Current Assets	$911M
TOTAL NON-CURRENT ASSETS	$202.4B
TOTAL ASSETS	$294.0B
Account Payables	$39.2B
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$220.1B
TOTAL CURRENT LIABILITIES	$264.8B
Long-Term Debt	$7.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$7.4B
TOTAL LIABILITIES	$272.3B
Common Stock	$15M
Additional Paid-In Capital	$4.7B
Retained Earnings	$20.0B
Treasury Stock	-$5.8B
Accum. Other Comp. Income	$88M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$21.7B
Minority Interest	$0
TOTAL EQUITY	$21.7B
TOTAL LIABILITIES & EQUITY	$294.0B
Total Debt	$7.4B
Net Debt	-$21.9B