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Analyzing FedEx Express Financial Performance Chapter

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,…

Sources used in this document:
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/
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