FedEx Corporation

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School

Columbia Southern University *

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Course

6301

Subject

Finance

Date

Jan 9, 2024

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docx

Pages

4

Uploaded by PresidentCrabPerson72

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FEDEX 1 FedEx Corporation Columbia Southern University FIN 6301 Corporate Finance Dr. Keith A. Wade Introduction
FEDEX 2 FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. It was founded in 1971 and offers shipping, printing, and business services in various countries. FedEx operates a global network of companies, including FedEx Express, FedEx Ground, FedEx Freight, and others. It is known for its reliable and fast delivery services and innovative use of technology. FedEx Corporation is a publicly traded company and regularly releases financial information (FedEx, 2023) . Some key financial metrics for the company include revenue, net income, earnings per share (EPS), and total assets. FedEx operates in a highly competitive and rapidly changing market, so it is important to regularly review its financial performance and compare it to industry averages and competitors. It's also important to consider broader economic conditions and their impact on the company. Ratios These financial metrics provide a snapshot of FedEx Corp's financial position and performance. However, to truly compare FedEx Corp to other corporations, these metrics need to be compared to industry averages and similar companies in the same industry. A debt-to-equity ratio of 0.86 indicates a moderate amount of debt compared to equity (FedEx Corp., Global Markets Direct SWOT Reports, 2022) . A current ratio of 1.43 (FedEx Corp., Mergent Online, 2023) means the company has sufficient current assets to cover its short-term obligations. A return on equity of 15.58% (FedEx Corp., Global Markets Direct SWOT Reports, 2022) shows the company is generating a reasonable return on shareholder investment (Birinyi Associates, 2023) . A quick ratio of 1.3 (FedEx Corp., Global Markets Direct SWOT Reports, 2022) shows the company can quickly pay off its short-term obligations. A negative working capital ratio of -2.7% (FedEx Corp., Global Markets Direct SWOT Reports, 2022) suggests the company may
FEDEX 3 have difficulty meeting its short-term obligations. A price-earnings ratio of 15.45 (FedEx Corp., Global Markets Direct SWOT Reports, 2022) is lower than the average for the S&P 500, which suggests the stock may be undervalued. An earnings per share of 14.54 (FedEx Corp., Mergent Online, 2023) indicates a positive profit for the company. It's essential to keep in mind that these metrics should be considered in the context of the company's specific industry and broader economic conditions. Conclusion These financial ratios provide some insight into FedEx's current financial position and performance. Still, it's important to keep in mind that they are just one part of the picture and don't provide a complete view of the company's future prospects. While a moderate debt-to-equity ratio, sufficient current assets, and a reasonable return on equity suggest that FedEx is financially stable, the negative working capital ratio and lower price-earnings ratio may indicate potential challenges in the future. However, a positive earnings per share suggests the company is profitable and generating revenue. It's important to consider various factors, including economic conditions, competition, industry trends, and the company's strategic plans and initiatives, when predicting FedEx's future. It's also important to keep in mind that financial markets and conditions can be volatile and unpredictable, and any predictions are uncertain. Reference
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FEDEX 4 Birinyi Associates. (2023). WSJ Markets . Retrieved from https://www.wsj.com/market-data/stocks/peyields FedEx. (2023). Investor Relations . Retrieved from FedEX.com: https://investors.fedex.com/home/default.aspx FedEx Corp. (2022). Global Markets Direct SWOT Reports . (GlobalData Ltd.) Retrieved from Gale Business: https://link-gale-com.libraryresources.columbiasouthern.edu/apps/doc/ AAA000068743/GBIB?u=oran95108&sid=bookmark-GBIB&xid=cc60137a FedEx Corp. (2023). Mergent Online . Retrieved from https://www-mergentonline- com.libraryresources.columbiasouthern.edu/companydetail.php?compnumber=95544