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Description of Financial Ratio Analysis

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Please check to see if the figures are correct and also check to make sure the calculations are correct. Data obtained from FedEx's Annual report (www.fedex.com). This is the same posting as I previously did earlier. I am just providing the source for the data I am using. I could not delete the first posting for some reason.

Current Ratio 5269.0/4734.0 = 1.1 (2005)
4790.0/4897.0 = 1.0 (2004)

Quick Ratio 5269.0 - 250.0/4734.0 = 1.1 (2005)
4790.0 - 249.0/4807.0 = 0.4 (2004)

Total Asset Turnover 29363.0/20404.0 = 1.4 (2005)
24710.0/19134.0 = 1.3 (2004)

Avg. Coll. Period (DSO) 3297.0/80.446 = 41 (2005)
3027.0/67.699 = 40 (2004)

Total Debt to Total Assets 7161.0/20404.0 = 35.1 (2005)
7664.0/19134.0 = 40.0 (2004)

Times Interest Earned 2471.0/(160.0) = ??????? (2005)
1440.0/(136.0) = ??????? (2004)

Return on Sales 1449.0/29,363.0 = 4.9 (2005)
838.0/24,710.0 = 3.4 (2004)

Return on Assets 1449.0/20404.0 = 7.1 (2005)
838.0/8036.0 = 47.3 (2004)

Return on Equity 1449.0/9588.0 = 1.5 (2005)
838.0/8036.0 = 1.5 (2004)

PE Ratio 30.00/4.81 = 6.2 (2005)
30.00/2.80 = 10.7 (2004)

Market to Book Ratio 9588.0/302 = $31.75 (2005)
8036.0/300 = $26.79

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Solution Summary

The solution has the calculation of various financial ratios for Fedex

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Please see below the corrections

Current Ratio 5269.0/4734.0 = 1.1 (2005) this is correct
4790.0/4897.0 = 1.0 (2004) this should be 4790/4807 = 1.0

Quick Ratio 5269.0 - 250.0/4734.0 = 1.1 (2005) this is correct
4790.0 - 249.0/4807.0 = 0.4 (2004) this should be 0.94

Total Asset Turnover 29363.0/20404.0 = 1.4 (2005) this is correct 1.4x
24710.0/19134.0 = 1.3 (2004) this is correct 1.3x

Avg. Coll. Period (DSO) 3297.0/80.446 = 41 (2005) this is correct 41 days
3027.0/67.699 = 40 (2004) this should be ...

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