Financial Analysis for Fedex Corporation

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Topics: FedEx
Financial Analysis for FedEx Corporation

EXECUTIVE SUMMARY

The modern air/ground express industry was pioneered with the founding of Federal Express in 1971; the corporation was created in 1998 as FDX Corporation and became FedEx Corporation in January 2000 (FedEx, 2013).
FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services, offering integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. FedEx inspires its more than 290,000 employees to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities (FedEx, 2013).
FedEx showed real grit in FY12. FedEx’s earnings per share increased 40 percent, and annual revenues exceeded $42 billion, a 9 percent increase, despite political gridlock in the United States, financial turmoil in Europe, a slowing Asian economy and volatile fuel prices. FedEx Ground delivered an 18.4 percent operating margins and accounting for more than half of FedEx operating profit. Online shipments spurred record volumes. More than one quarter of FedEx Ground lanes are now faster in terms of transit times than the competition, boosting service and customer satisfaction to unprecedented levels. As a result, including FedEx SmartPost, FedEx’s overall U.S. ground parcel-market share has increased to nearly 30 percent, doubling over the last decade. The rapid transformation of FedEx Freight paid off with a strong return to profitability. Revenues grew 8 percent year over year. Offering both priority and economy service options and industry-leading transit times have made FedEx Freight a market share leader (FedEx, 2013).
This paper addresses current status of FedEx Corporation and how they are performing. The paper addresses FedEx’s SWOT analysis giving their strengths, threats,



References: Amsler, M., Cullen, J., and Erdmenger, J. C. (2010). Strategic Report for FedEx. Vector Strategy Group. Retrieved from http://economics-files.pomona.edu/jlikens/SeniorSeminars/vector2010/pdf/fdx.pdf Clark, W Collins, J. (1999). How to Create a Capital Expenditure Budget retrieved from http://www.ehow.com/how_7897488_create-capital-expenditure-budget.html#ixzz2KeJ3hBBY Elliott, S FedEx Corporation (2013). About FedEx: Company Information retrieved from http://about.van.fedex.com/company-information Gross, C Guenette, R. (2012). FedEx Corporation: Strengths, Weaknesses, Opportunities, Threats. Retrieved from http://beta.fool.com/makinmoney2424/2012/11/13/fedex-corporation-strengths-weaknesses-opportuniti/16286/ MBASkool.com (2012) Morgan, L. (2012). Labor Cost Cutting Strategy retrieved from http://www.ehow.com/way_5787719_labor-cost-cutting-strategy.html#ixzz2KpDwaHyu Power, M Shadunsky, A. (2011). Does Lowering Financial Leverage Involve a Lower Risk? Retrieved from http://www.ehow.com/info_11416188_lowering-financial-leverage-involve-lower-risk.html Smith, D

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