Part One: Company Analysis
The following is a summary of performance data of FedEx over a three-year period:
(in millions) | Year 1 | Year 2 | Year 3 |
Sales | 34,734 | 39,304 | 42,680 |
Cost of Goods Sold | 33,550 | 37,852 | 40,648 |
Net Income | 1,184 | 1,452 | 2,032 |
Assets | 25,654 | 27,385 | 29,903 |
Total Debt | 11,695 | 10,498 | 13,926 |
Equity | 15,654 | 15,220 | 14,727 |
Operating Cash Flow | 1,998 | 2,378 | 3,186 |
Investment Cash Flow | -2,781 | -3,419 | -4,049 |
Financing Cash Flow | -692 | -287 | -244 |
Required:
Given the information in the table above, calculate the following:
- Profit margin on sales
- Return on assets
- Return on equity
- Total debt to total assets
- Total asset turnover
Explain and evaluate your results as they pertain to profitability, debt, and asset turnover for the company over a three-year period.
Part Two: Final Project Week 4: Issues and Interests of Investors and Other Stakeholders; Analysis of Company Performance
Required:
- Identify two items or issues that cannot be derived from the financial statements of the two companies that you selected for your research. Explain why these items or issues would be of concern to investors and other stakeholders. In your rationale, address the specific interests of the different users of financial statements.
- Compare and contrast the two companies in terms of how well or how poorly they are performing in the areas of profit, debt, and asset turnover. Use appropriate ratios in your analysis. Indicate strategies for possible improvement in each area.
Deliverables:
- By
Week 4, Day 6, submit your answers to the
questions in Part One, using an MS Excel document, to the
W4: Assignment 2 Dropbox. Use good form, and show
all your calculations and conclusions.
Name your document SU_FIN4060_W4_A2_Part1_LastName_FirstInitial
- By
Week 4, Day 6, address the issues for the Final
Project, Week 2 outlined in Part Two, using an MS Excel document.
Show all your calculations and conclusions. Submit your document to
the
W4: Assignment 2 Dropbox. Use good form, and cite
all sources using APA format.
Name your document SU_FIN4060_W4_A2_Part2_LastName_FirstInitial











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