FedEx's Financial Overview
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Fedex Financial Overview
Using FedEx's financial statements, investor presentations, industry reports, newspaper/magazine articles, consumer reviews write a three-page paper and analyze FedEx's competitive advantages, including the Sellers framework. Analyze FedEx's stock value. This will include analysis of the company's present P/E, PEG, P/B, and P/S multiplies versus competitors (UPS/DHL) in the industry and versus historic multiples going over the past 1,3, and 5-year periods. Offer an opinion as to the current pricing of the company's stock. Assess FedEx's fixed-income makeup. Please identify the bonds that the company has issued, the amounts of those bonds, their structure, their various due dates, and their various interest rates. Use the breakeven and payback analyses to elevate FedEx from a variety of different angles.
Breakeven and payback analyses tools are valuation tools that are designed to quantify the present value of an asset that will distribute future cash flow. Like the breakeven point, the payback period captures a specific moment in a project's life cycle. But while breakeven analysis helps managers make intelligent decisions about working capital and liquidity, payback analysis is designed to highlight the efficiency, profitability and time value of a project. More specifically, the payback period is the length of time before investors recoup all of the costs incurred to make a project happen.
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The solution examines Fedex financial overviews. The response addresses the query posted in 1691 words with APA references.
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The competitive position of the company is judged by the value it delivers to its customers through its Products and services. In this context, in the following discussion, the competitive position of FedEx has been explored.
Competitive Advantage of FedEx
An enterprise can gain a competitive advantage by providing greater value to the customers through various ways such as lower prices and better quality of the products or services. As far as the prices of products and services are concerned, a company can afford to reduce the prices if its operating profit margin is more than the competitors. In case of Fedex, it has an operating profit margin of 9.55% while its biggest competitor united Parcel Service (UPS) has an operating profit margin of 8.69%. The company has operating profit margin slightly higher than the competitors, this means that the reduction in prices will not be sustainable in order to gain a competitive advantage.
However, the company is greatly devoted to innovations and implementation of latest technologies, which will help the company to serve customers in the best manner. The PC-based automated shipping system has now been replaced with the highly automated systems named as FedEx Powership and FedEx Tracking. Further, the company has implemented a SenseAware with the help of which real-time shipment data can be detected and transmitted. These innovations are being undertaken to provide value-added services to the customers in order to gain an advantage over its competitors.
In addition, the innovations and use of advanced technologies, FedEx has a wide network through which it operates smoothly worldwide. The customers have deep trust in the services of the company as it provides multiple solutions ranging from air to ground and ocean. Therefore, the company's portfolio of services is also a competitive advantage, which provides a strong customer base to the company over its competitors. Further, the operations are being made fully focused on delivering best services with reliability to the customers. Further, the integrity of the team members of the company is also an important aspect, which has a bearing on the competitive advantage of FedEx. The company is managed by the people, who have a great experience of several years of working with the company. The strategies framed, and direction given by these vastly experienced members of management benefits the company in various ways.
FedEX Corporation is a US based company that is engaged in the business of transportation and e-commerce. In the next paragraphs, there will be a discussion over the financial performance of the company through consideration of price-earning ratio, price earning to growth ratio and other parameters with comparison to its ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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