Analysis of Financial Statements
FedEx was established by Fredrick W. Smith in 1971 as Federal Express Corporation. The company is the largest in the world with operations in more than 220 territories and countries (Ferrell & Hartline, 2011). FedEx Express provides air service within the United States as well as at international markets. FedEx Express is the largest express transportation company in the world (FedEx, n.d) FedEx Express carries more freight when compared to other airlines. In addition, the company has the largest fleet of wide bodied civil aircraft and the largest civil aircraft fleets across the globe (Ferrell & Hartline, 2011). FedEx’s financial performance in the last five years has been excellent because the company has made profits. The paper provides an analysis of the financial statements of FedEx express for the last three years to make decisions on the strength and adaptability of a business.
Income Statement provides the financial position of the company in terms of earning per share, profits, and revenues. With regard to FedEx, the revenues and earnings increased in the last three years as a result of improved international export volume, U.S. domestic, and package yields. Though the FedEx was not hit by the 2008 financial crisis, the company successfully set a number of goals to increase its profits. For example, the FedEx’s long-term goals has been to increase profitable revenue, realize more than10% operating margin, and achieve 10%–15% annual earnings per share(EPS) growth (Schmidt, 2015). Financial performance for FedEx between 2013 and 2015 is provided in Figure 1 below.
Ratings
