On the morning of Tuesday, Dec. 12, global investment bank and securities management firm Goldman Sachs (NYSE:GS) released fourth-quarter 2006 earnings for the period ending Nov. 24, 2006.

  • Goldman Sachs is one of the companies that stand to benefit from the increased IPO, merger, and leveraged buyout activity in the markets. The rocketing net revenues are a testament to that fact.
  • Both revenues and earnings outpaced the growth in managed assets, which tells us that the company squeezed more juice than before out of every tasty fruit handed to it. Management isn't putting its feet on the table and resting on its laurels in these boom times.
  • Did you know that the Motley Fool CAPS community rates Goldman Sachs a solid four stars? Weigh in with your take on the stock -- or any stock -- right here. It's fun, free, and financially fructifying.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Net Revenues

$9,407

$6,403

46.9%

Net Profit

$3,152

$1,632

93.1%

EPS

$6.77

$3.35

102.1%

Diluted Shares

470.7

485.2

(3.0%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Net Revenue Margin

51.90%

52.72%

(0.82)

Operating Margin

27.50%

20.41%

7.09

Net Margin

17.39%

13.44%

3.95

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Avg. Assets Under Mgmt

$652.5

$526.0

24.0%



Learn the ways of the balance sheet.

Related Companies:

  • Merrill Lynch (NYSE:MER)
  • Citigroup (NYSE:C)
  • Morgan Stanley (NYSE:MS)
  • Lehman Brothers (NYSE:LEH)
  • Bear Stearns (NYSE:BSC)
  • JP Morgan Chase (NYSE:JPM)

Related Foolishness:

JP Morgan Chase is an Income Investor selection. You can find out why with a 30-day free trial .

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.