Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
FedEx Express Financial Performance
The financial performance of any organization can be determined through the analysis of its financial statements. Comprehensive income statement, statement of financial position and cash flow statement are the main financial statements. Every end of fiscal year, a company is expected to report its business operations and financial performance throughout the year for the users of its financial statements. These financial statements are utilized to examine and evaluate not only the financial performance, but also the financial position of a company. Suitable and effective analysis of these financial statements makes it conceivable to accomplish valuable financial information, which can be efficiently made use of for decision making. The purpose of this paper will be to analyze the financial performance of FedEx Express.
With respect to revenue generated, in the past three years, the company's revenue amount steadily and gradually increased from $44.3 billion in 2013 to $45.6 billion in 2014 and further up to $47.5 in 2015. Statistics indicate that the revenue of the company increased by approximately 37% in the past five years (FedEx, 2014). This growth in revenue has been in proportion to the economy recovery in the industry as well as the nation in overall. One of the...
In particular, in recent periods, the company has been effective and successful in executing its economizing and process restructuring endeavors, fleet upgrading, as well as other initiatives. As a result, these initiatives assisted the company to grow its attuned operating margins to 9% towards the end of last year. In accordance to the information unveiled in the annual reports of FedEx, the company adjusted operating margins increased from 7.8% in 2013 to 7.9% in 2014 and further rose up to 9.0% in 2015. This indicates the level of effectiveness of the company's business operations to generate returns in the fiscal years (FedEx, 2015).
The return on assets ratio is a financial ratio that indicates the profitability of the company in utilizing its assets. Similar to the return on equity, the ROA of FedEx has improved in the past six years from 0.4% in 2009 to 8.7% in 2015. Nonetheless, it is imperative to note that in the past year, the unadjusted return on assets ratio of FedEx declined to 3% as a result of the mark to market pension expenditures (Schmidt, 2015). In addition, FedEx in the past three years has been effective in terms of generating positive and strong cash flows. Statistics indicate that in the last six years,…
References
FedEx. (2015). 2015 Annual Report.
FedEx. (2014). 2014 Annual Report.
Schmidt, A. (2015). What Are FedEx's Major Costs? Market Realist. Retrieved 2 April 2015 from: http://marketrealist.com/2015/06/FedExs-major-costs/
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL
Local networks in Poland and in the United Kingdom have also been built up and an utter focus has been laid on Asia. By reinvesting the funds generated, the company sustains growth through acquisitions, the development of new products and the improvement of the services provided. A result of the reinvesting process is the Package Flow Technology. This is a multi-year re-engineering of their pickup and delivery of packages. It
Organizational Analysis Models of organizational performance Organizational performance relates to how successfully an organized group of people with a particular purpose perform a function. It comprises an actual output of an organization measured against its intended outputs. It encompasses three areas of firm outcomes which include; financial performance, product market performance and shareholder return (Charles, Hill and Jones, 2004). There are various models of organizational performance which include strategic Triangle Model, SWOT
Each employee therefore plays a role in revenue generation. Just as important is the fact that a key organizational objective is to be as efficient and productive as possible. Revenue per employee is a key productivity ratio, and the higher this figure the more productive the company. Many employees can directly see themselves in this ratio, which orients personal responsibility for its improvement, another value of having a metric
For the first 2010/2011 fiscal quarter ending Aug 31, FedEx Freight generated revenue of $1.26 billion, up 28% from last year's $982 million, but made a loss of $16 million -- down from an income of $2 million a year ago (2010, FedEx). FedEx Corp. reported gross revenue of $9.46 billion in the quarter, up 18% from $8.01 billion the previous year; operating income of $628 million, a 99% increase from
1. What happened to the two company’s stock price in 2004? Why did it rise? Did one company outpace another and if so why do you think that happened? How should we interpret any increases? Mid-year 2004, China and the United States attained a revolutionary air-transportation covenant that increased the number of commercial cargo trips between the two nations four-fold. In addition, the agreement encompassed the permission for air-cargo hubs to