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Essay / Research Paper Abstract
This 13 page paper examines the financial performance of FedEx between the years 2003 and 2007. The paper looks at the various profit margins, efficiency ratios, liquidity, and cash flow assessing the general trend seen within FedEx as well as comparing the results to the results of the industry in general. The bibliography cites 8 sources.
Page Count:
13 pages (~225 words per page)
File: TS14_TEfedex07.rtf
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Unformatted sample text from the term paper:
years is shown a higher level of growth than others. However, a company cannot be measured simply by looking at the level of revenue growth. It is possible to revenue
to increase while profits decrease even numerically or proportionately to the level of revenue. In order to assess the company it is important to look at its overall financial performance
in the current year, as well as the trends which may be seen as a period of years; this means looking at vertical and horizontal analysis. When examining company performance
the first margin which is commonly used is that of the gross profit margin. This is the level of income that remains when all of the direct costs of producing
the goods or services are deducted from the revenue, the remaining figure is presented as a margin. For FedEx in 2007 the gross profit margin was 93.3%, this indicates that
the direct cost of goods and services that this company is very low. Looking at the trend analysis over the last five years we would expect to see the gross
profit margin remain at a similar level, however some fluctuation is acceptable. If the gross profit margin increases than the level of the direct costs is reducing, if the gross
profit margin is decreasing then the cost of goods is increasing. In 2006 gross profit margin was 92.6%, in 2005 it was 92.1%, in 2004 it was 92.2%, and in
2003 it was 92% (Morning Star, 2007). This indicates that overall there has been a slight increase in the level of gross profit. As the company has grown it is
possible that there has been a great ability to benefit from economies of scope and scale, it is also possible that the company has simply been able to cut its
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