1. DISCOVER FINANCIAL Services- analysis

2. Current financial situation
The revenue of the company is $9,897 in year 2017 in comparison to $9,099 in year and the revenue of the company is increasing year on year basis.
The earning per share is 5.42 per share in year 2017 and the earnings and value for shareholder is increasing year on year basis.
The EBT margin of the company is 35.74% in year 2017 whereas 40.18% in year 2016 which shows that the profitability of company has been reduced in current year.
The company is high levered and debt equity ratio of the company is 2.55 which shows that the company is having high debt and the debt burden has been increased in recent years.
The company operating cash flow growth has been increased and is 17.69% in year which shows that the company has generated operating cash flows during the year 2017 in comparison to previous years.

3. Competitor analysis
There are various competitors of Discover financial services such as Bank of America Corp, Visa Inc., Citigroup Inc. and American express Co. The detailed analysis of Q3, 2018 is as below:
Rev Y/Y
Rev. Seq.
Inc. Y/Y
Inc. Seq.
Discover financial services
7.08%
6.5%
19.6%
7.62%
Bank of America Corp.
4.3%
0.74%
28.28%
5.65%
Citigroup Inc.
1.19%
-0.43%
11.93%
2.41%
Visa Inc.
3.7%
32.94%
22.16%
American Express Co.
-17.42%
-10.11%
-3.66%
-3.41%
Mastercard Inc.
14.71%
6.36%
32.8%
21.03%
Western Union Co.
-1.2%
-1.65%
-11.46%
-4.14%

4. Ratio analysis
Valuation: The P/E ratio of the company is times, Price to sales ratio is 2.49 times, Enterprise value to EBITDA is 9.18 times and total debt to Enterprise value is 0.62 times.
Profitability: The operating margin of company is 31.40%, Pretax margin is 30.63%, Net margin is 17.91%, Return on Assets is 2.14%, Return on equity is 18.62% and Return on Invested capital is 6.50%.
Capital structure: Total debt to total equity is , Total debt to capital is 70.73, Total debt to total assets is and Long-term debt to equity is
Efficiency: Total asset turnover ratio is 0.12 times and income per employee is $125,333.

5. FUTURE FINANCIAL PLANNING
The company will continue to invest heavily in leading digital and analytical tools and technologies and in 100% U.S based customer service.
The company will focus on four priorities: driving profitable growth across all of products and services; enhancing capabilities and operating models; increasing efficiency; and maintaining focus on risk management.
The company will introduce new technologies and features in its existing services to provide more personalized experience to its customers.

6. Thanks