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We will produce superior financial returns for our shareowners by providing highvalue added logistics, transportation and related business services through focused operating companies.
We seek to grow our global business by serving the logistics needs of customers, offering excellence and value in all that we do; maintain a financially strong company that provides a long-term competitive return to our shareowners.
The firms policy complements its tradition of employee ownership & eliminates the need to hire managers and officers from outside UPS. Majority of the management team have spent their entire careers with UPS.
FDXS BATTLECRY
COMPETE OPERATE MANAGE
FDXS BATTLECRY
COMPETE OPERATE MANAGE
collectively by standing as one brand worldwide and speaking with one voice
collaboratively by working together to sustain loyal relationships with our workforce, customers & investors
1992-2003: AT A GLANCE
UPS (Average) 6.7% 11.6% 27.5% FDX (Average) 10.6% 10.0% 22.4%
Sales Book Assets Net income before unusual (gain) loss Net Income Operating Income
32.1% 10.0%
26.9% 17.7%
16.00%
14.00%
12.00%
10.00% fedex margin before interest and taxes 8.00% UPS margin before interest and taxes Poly. (fedex margin before interest and taxes) 6.00% Poly. (UPS margin before interest and taxes)
4.00%
2.00%
0.00% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
12.00%
10.00%
8.00%
6.00% fedex net profit margin 4.00% UPS net profit margin Poly. (fedex net profit margin) Poly. (UPS net profit margin) 2.00%
0.00% 1992 -2.00% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
-4.00%
14.00%
12.00%
10.00% fedex ROA 8.00% UPS ROA Poly. (fedex ROA) 6.00% Poly. (UPS ROA)
4.00%
2.00%
0.00% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
30.00%
25.00%
20.00%
e
Fedex ROE UPS ROE Poly. (Fedex ROE)
15.00%
10.00%
5.00%
0.00%
1992
-5.00%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
-10.00%
60
50
20
10
0 1 2 3 4 5 6 7 8 9 10 11 12
2.5
Fedex fixed asset turnover 1.5 UPS fixed asset turnover Poly. (Fedex fixed asset turnover) Poly. (UPS fixed asset turnover) 1
0.5
0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
2 1.8 1.6 1.4 1.2 Fedex total asset turnover 1 0.8 0.6 UPS total asset turnover Poly. (Fedex total asset turnover)
0.4
0.2 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
2.5
Fedex current ratio 1.5 UPS current ratio Poly. (Fedex current ratio) Poly. (UPS current ratio) 1
0.5
0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
1.2
e
Fedex cash ratio UPS cash ratio Poly. (Fedex cash ratio)
0.8
0.6
0.4
0.2
0
1992 -0.2 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
6000
5000
4000
3000 Fedex working capital turnover 2000 UPS working capital turnover Poly. (Fedex working capital turnover) Poly. (UPS working capital turnover) 1000
0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 -1000
-2000
reached an air-transportation agreement that impacted the global air-cargo market by allowing an increase in the number of flights between the two nations. This would impact many companies around the world due to the predicted future growth of Chinas domestic and international market. Two of the largest predicted beneficiaries of this agreement were FedEx Corporation and United Parcel Service, Inc. and investors confidence in the opportunity could be seen through their stock prices in 2004.
Which company was better positioned to attract the capital necessary to win this competitive battle?
From 1992- 2003, UPS ratios proved that it is more profitable and more liquid than FedEx. Their superiority in managing profits and liquidity have translated to higher and faster growing stock price, EPS, and P/E ratio compared with FedEx.
On the other hand, Fedex has proven itself to be more efficient in its operations compared with UPS. This is supported by its activity ratios, which is far superior than UPS. Due to these facts, Fedex displays future growth potential.
2.50
2.00
0.50
2.50
2.00
1.50 Quick Ratio (FDX) Quick Ratio (UPS) Poly. (Quick Ratio (FDX)) 1.00
0.50
1 2 3 4 5 6 7 8 9
60.00
50.00
40.00
20.00
10.00
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
50.0%
40.0%
ROE (FDX) 30.0% ROE (UPS) Poly. (ROE (FDX)) Poly. (ROE (UPS)) 20.0%
10.0%
0.0% 1 2 3 4 5 6 7 8 9
1.80
1.60
1.40
1.20
1.00
0.40
0.20
3.50
3.00
2.50 Dividend Payout Ratio (FDX) 2.00 Dividend Payout Ratio (UPS) Poly. (Dividend Payout Ratio (FDX))
1.00
0.50
1 (0.50) 2 3 4 5 6 7 8 9
STOCK PERFORMANCE
120.00 Market Price (FDX) 100.00 Market Price (UPS) Poly. (Market Price (FDX)) Poly. (Market Price (UPS))
80.00
60.00
40.00
20.00
2004-2012: AT A GLANCE
Which company is better positioned to attract the capital necessary to win this competitive battle?
1 3
The FedEx brand gives the company leverage as the top of mind in the package delivery industry.
Fedex is a business built on data the right information at the right time when customers contact Fedex.
STILL WINS