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 Canada
Source of Finance (millions)
Balance sheet value as of: 28 Feb 2011
Market value as of:____6/5/2011
Proportion in total financing
Cost of capital (WACC)
Product of (4)x (5)
Short-term debt
1,685,000
D/E Ratio: 11.07
Long-term debt 1
1,667,000
Long-term debt 2
Long-term debt 3
Preferred shares
Common equity
Total
1,716,000
Revenue
39.30B
34.73B
35.49B
37.95B
35.21 B
-Purchase of Office Supplies
-Direct and indirect labor
-Marketing expense
- Depreciation
1.91 B
1.90 B
1.89 B
1.70 B
1.52 B
EBIT
2.34 B
1.97 B
2.11 B
3.35 B
-Taxes
Net income
1.45 B
1.18 B
98.00 M
1.12 B
2.02 B
+ Depreciation
Operating cash flow
4.04 B
3.14 B
2.75 B
3.48...
Throughout the globe there has been an economic downturn that has affected many sectors including both large and small businesses. With this understood the company has to evaluate the effect of small and large businesses closing or reducing in size on FedEx' bottom line. More specifically financial managers will have to examine fluctuations in fuel price which is one global price fluctuation that has a profound effect on the company's bottom line because FedEx has to fuel so many aircraft and vehicles. In addition the company will likely face foreign currency exchange risks. According to the company's annual report, "The principal foreign currency exchange rate risks to which we are exposed are in the euro, Chinese yuan, Canadian dollar, British pound and Japanese yen. Historically, our exposure to foreign currency fluctuations is more significant with respect to our revenues than our expenses, as a significant portion of our expenses are denominated in U.S. dollars, such as aircraft and fuel…
Works Cited
FedEx Corporation Income Statement. Retrieved from; http://finance.yahoo.com/q/is?s=FDX+Income+Statement&annual
FedEx Annual Report. Retrieved from; (2010)http://files.shareholder.com/downloads/FDX/1313050925x0x395636/5b8f7453-b960-4f0f-92cd-ec27cab06760/FedEx_2010_AR.pdf
WACC Discount Rate Analysis - FedEx (FDX). Retrieved from; http://www.wikiwealth.com/research:fdx
Long-Term Financial Planning FedEx Corporation FedEx Corporation was established in 1971 and the company has four distinct business segments that include FedEx Express, FedEx Ground, FedEx Office and FedEx Freight. Over the years, the company has obtained 6-year of CAGR (compounded annual growth of 5%). However, the company is likely to obtain similar CAGR of 5.9% over the next 8 years based on current economic environment. (FedEx Corporation .2010. The WACC (weighted average
FedEx Corporation offers worldwide delivery services in the overnight and ground businesses, along with other related logistics services. The company operates around the world, utilizing either wholly-owned subsidiaries or service partners to gain market entry. If the company is considering making an investment in a foreign country, it can start by determining the cost of capital. Most of the company's business is in the U.S., so the domestic cost of
Business Expansion FedEx is a corporation offering worldwide delivery services to other corporations, government entities, individuals and anyone who is interested in quick, efficient and safe delivery of documents and other packages throughout the world. As such, FedEx is constantly looking to expand into additional marketplaces and geographies. Understanding the local economies and cultures of the areas of expansion are key to a successful launch and ongoing profitability when servicing the
JOHNSON & JOHNSON The Fundamental Analysis of Johnson & Johnson Inc. (J& J, 2005) Economic and Market Analysis Globalization Industry Analysis Company Analysis Brief History of the Company Analysis of Capital Asset Pricing Model Intrinsic Value Valuation Measures Trading Information Competitors Awards & Recognition Our modern business world consists of an extremely competitive global economy where manufactures search for opportunities to strategically reduce costs and increase market share and profitability. Historically, the most often chosen solution for holding down costs was to systematically reduce
85). Newly independent countries joined in the shipping industry as a way of demonstrating their economic independence, leading to an increase in the number of open registers as owners in the traditional maritime countries could now register in countries with less demanding tax laws and lower costs for workers. Shipbuilding, which had long been dominated by Europe and North America, moved instead to East Asia. Other changes also took place
Another issue is the legal/political power that Southwest has (or does not have, in relation to its rivals). Ultimately, the company has suffered as the result of the Wright Amendment, and it needs to leverage its current size to fight back against American Airlines over this legislation. Not only should Southwest fight for the amendment to be repealed in its entirety and immediately, but it should fight for punitive