Friday, August 07, 2009
Alex Dumortier,CFA :: Townhall.com Columnist
How Does Goldman Make So Much Money?
by Alex Dumortier,CFA
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You've probably heard by now that Goldman Sachs (NYSE: GS) shot the lights out last quarter. In its 10-Q, released earlier this week, the investment bank shows just how successfully it's navigating current markets. During the second quarter, Goldman made more than $100 million in trading revenue in each of a record 46 days, with just two losing days out of 65 – for an astonishing hit rate of 97%!

How do they stack up?
In the quarter, Goldman's powerful Fixed Income, Currencies & Commodities (FICC) division alone put up record revenue of $6.8 billion – more than the total revenue for its closest competitor Morgan Stanley (NYSE: MS), and ahead of some of the world's largest, most successful companies:

Company/Division

Q2 Revenue

Goldman's FICC

$6.8 billion

Merck (NYSE: MRK)

$5.9 billion

McDonald's (NYSE: MCD)

$5.6 billion

Philip Morris International (NYSE: PM)

$6.1 billion

Morgan Stanley (NYSE: MS)

$5.4 billion Continued...

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About The Author

Alex Dumortier, CFA, is a Motley Fool Contributor.

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