... clares that they are very prepared for whatever is ahead of them in the future and will make the sacrifices to stay in business and continue to have content stock holders, employees and clients. Benjamin Edwards III, the CEO of the corporation states numerous times that the number one interest of the corporation is to look out for the customer and always be placing them first. The Organization of A. G. Edwards Inc.
is organized like most other corporations. The organization of A. G. Edwards Inc.
can be considered centralized. As it can be seen from the preceding chart the organization is hierarchical. There is Benjamin Edwards who is the president and resides over all the other positions in the corporation. The other pos i-t ions include subsidiary officer, treasure, vice chairman of the board, vice president, sec-retard, and controller assistant secretary. Under the people in these positions is the board of directors and then the stock holders.
The interesting aspect about A. G. Edwards Inc. is since A.
G. Edwards Inc. is composed of numerous small corporations each subsidiary has its own board of directors. Integration in a business sense has been described to me as in the vertical and hor i-zonal senses; vertical integration being defined as containing a general sense of one or more industries or being a full service corporation. So basically a corporation that sup-plies numerous services under one roof would be considered vertically integrated. With this in mind A.
G. Edwards Inc. is definitely a vertically integrated company. A. G. Ed-wards Inc.
is certainly a generalized company since is contains so many subsidiaries. Since A. G. Edwards Inc. oversees many other smaller companies, it also competes in numerous other markets. These markets are the markets for: stock, futures and com-modify brokerage, life insurance and annuities, mutual funds, corporate and municipal trusts, and investment banking.
This is the section of the paper where the financial aspects of the company are dis-cussed. A chart will mostly be used in order to express the companies standing and then the chart will be explained as to what the figures for the company signify. The following chat gives a good general outlook as to what is numerically happening financially to the company. Operating Results 1996 1995 1994 1993 1992 Revenues $1, 454, 467 $1, 178, 342 $1, 278, 641 $1, 074, 388 $938, 659 Net Earnings $170, 582 $124, 119 $154, 871 $119, 425 $105, 532 Net Earnings as a Percent of Revenues 11.
7% 10. 5% 12. 1% 11. 1% 11.
2%Earnings Per Share $2. 65 $2. 00 $2. 57 $2.
07 $1. 88 Stockholders' Equity $1, 088, 684 $919, 281 $790, 367 $615, 240 $492, 010 Return on Average Equity 17. 0% 14. 5% 22. 0% 21. 6% 24.
0%Total Assets $3, 102, 085 $2, 224, 282 $2, 236, 590 $2, 111, 192 $1, 577, 143 From this chart many conclusions can be drawn. Before what the actual numbers signify, the terms in the chart will be explained. Revenue is the total gross amount of money that the corporation brought in for that year. Net Earnings is the net income or the monetary value that the corporation brought in that year after expenses. The earnings per share is how much net earnings the corporation made for every share of the company. Earnings per share is more or less the earnings divided by the number of shares that have been issued by the corporation.
The stockholders equity is basically what return the public has gotten for investing in the company. Then the total assets is the monetary value of the company and everything that is connected to it. There is also the statistics of the shares of A. G. Edwards Inc. The return on average equity is the return on the money that is in-vested internally.
The current outstanding shares are 63, 430, 245. From that number the number of shares held by insiders is 2, 238, 256 and the number of shareholders is 21, 500. On January 31, 1997 the high for the price of the stock was 34. 625 and the low was 33. 125 and then closing at 34. 000 (CD, 1996, p.
8). The stock price for March 4, 1997 was a high for the day at 36 and low for the day at 35 3/8 and then closed at 35 3/8 which is the unchanged price from the previous day (America Online, 1996). The earning per share for that day was 3. 21 (America Online, 1996).
Based on what has been presented in the preceding paragraphs I think that A. G. Edwards would be a good investment. From what I have read in the all of the materials that have been at my disposal, A.
G. Edwards Inc. made a very good impression on me. They seem to be a corporation that is on a right track and once it can break away from the competition it will be huge. I also think that it is very possible for A. G.
Edwards to be-come a great company if it continues with the upward trend in earnings that it has been displaying for the past decade. From the chart I can draw these conclusions just by look-ing at the net earnings and how they have increased almost 70 thousand dollars. This shows that the company has been doing something right and thus could potentially be good investment. A. G. Edwards Inc.
has done very well in the industry this year making it a record year for 1996, although much of the credit was because of the big jump in the Dow Jones average (1996 Report. 1996, p. 3). A. G. Edwards Inc.'s net earnings reached an all time high and resulted in the paying of more that 100 million dollars in current year income taxes for the first time (1996 Report, 1996, p.
3). Related to the jump in net earnings was the fact that the stockholder's net worth went to 1. 1 billion dollars, or 17 dollars per share (1996 Report, p. 3). A. G.
Edwards Inc. has undoubtedly experienced a great year weather or not they can be credited with their success. Because of the increase in earnings that A. G. Edwards has experienced the corporation was able to expand their office locations (1996 Report, 1996, p.
3). In the fourth fiscal quarter A. G. Edwards Inc.
opened offices in Harrisburg, PA; Galesburg, Ill; Griffin, GA; granting A. G. Edwards a total of 536 locations (1996 Re-port, 1996, p. 3). Including these office locations, there were twenty more other office locations added around the United States for the year of 1996 (1996 Report, 1996, p. 23).
A. G. Edwards was also able to increase its number of investment brokers to 5, 757 by the end of the year, an increase of 5% from the prior year (1996 Report, 1996, p. 23).
Also in the past twenty years A. G. Edwards has grown to 483 offices in 48 states (Siconolfi, 1993, p. 23).
The broker sales force more than doubled since the year of 1984 (Siconolfi, 1993, p. 24). These are great changes for the corporation and shows investors that the company has a sure footing in the industry. There has also been the past changes in the corporation with the continuous adding of smaller subsidiary corporations which all per-form separate tasks under the name of A. G. Edwards Inc.
From this paper the reader should have learned a great deal about A. G. Edwards Inc. A. G.
Edwards Inc. is an interesting corporation because of numerous reasons. Probably the number one reason for this is the fact that its main subsidiary is a brokerage firm and brokerage firms are fast paced people working together with other people. When you have this combination the future can never be predicted with great accuracy. The corporation is so big considering that it contains so many other companies, and any corp o-ration with numerous other corporations underneath it is always fun to learn about. From this paper it is my hope that the reader has become more knowledgeable about -ration A.
G. Edwards. Not only how much money the corporation has pulled in or what it does, but also about how it is run and what the attitude of the company is. References Anthony, Van 'Securities Firms' 1993, September) The Securities and Exchange Com-mission Report.
Hoover's Company & Industry Database. CD-ROM. September 1993. A. G. Edwards Inc.
(1996, February 29). 1996 Annual Report Siconolfi, Michael. (1993 December). 'The Brokers's mart Money, 23-26.' Complete Company Records' (1996, February) Compact Disclosure. CD-ROM. February 1996.' Quotes and Portfolios.' (1997 March 5).
America Online. Online. America Online. Keyword: Quotes. Flagg, Jonas. (1994 August/September) 'A.
G. Edwards: A 107-Year-OldLegacy's securities Industry Management Magazine, 56. Other References 1). I made the graph myself from data in:' Complete Company Records' (1996, February) Compact Disclosure. CD-ROM.
February 1996. 2). I made the graph myself from data in: A. G.
Edwards Inc. (1996, February 29). 1996 Annual Report Table of Contents. Industry OverviewA. History of the industry.
Identification of the corporation. Competition in the industry. Interesting Information about the industry II. Company OverviewA. History of the company. Company Information.
Organization of the company III. Financial Information. Financial Statistics. Financial Analysis IV. Corporate Culture & Trends A. Key Recent Events.
How the company is holding upC. Improvements on the company. Conclusion VI. References.