Reference no: EM131496875

Assignment: Company Analysis and Final Project Week 4: Issues and Interests of Investors and Other Stakeholders; Analysis of Company Performance

Part One: Company Analysis

The following is a summary of performance data of FedEx over a three-year period:

(in millions)	Year 1	Year 2	Year 3
Sales	34,734	39,304	42,680
Cost of Goods Sold	33,550	37,852	40,648
Net Income	1,184	1,452	2,032
Assets	25,654	27,385	29,903
Total Debt	11,695	10,498	13,926
Equity	15,654	15,220	14,727
Operating Cash Flow	1,998	2,378	3,186
Investment Cash Flow	-2,781	-3,419	-4,049
Financing Cash Flow	-692	-287	-244

Required:

Given the information in the table above, calculate the following:

• Profit margin on sales
• Return on assets
• Return on equity
• Total debt to total assets
• Total asset turnover

Explain and evaluate your results as they pertain to profitability, debt, and asset turnover for the company over a three-year period.

Part Two: Final Project Week 4: Issues and Interests of Investors and Other Stakeholders; Analysis of Company Performance

Required:

1. Identify two items or issues that cannot be derived from the financial statements of the two companies that you selected for your research. Explain why these items or issues would be of concern to investors and other stakeholders. In your rationale, address the specific interests of the different users of financial statements.

2. Compare and contrast the two companies in terms of how well or how poorly they are performing in the areas of profit, debt, and asset turnover. Use appropriate ratios in your analysis. Indicate strategies for possible improvement in each area.

Deliverables:

1. Submit your answers to the questions in Part One, using an MS Excel document, to the W4: Assignment 2 Dropbox. Use good form, and show all your calculations and conclusions.

2. Address the issues for the Final Project, outlined in Part Two, using an MS Excel document. Show all your calculations and conclusions. Use good form, and cite all sources using APA format.