FEDERAL EXPRESS

Financial Particulars (in million $) YEAR

2006 2005
Revenues A 32294 29363
Cost of Goods Sold B 15159 13467
Gross Profit C=A-B 17135 15896
Selling, Gen. & Administrative Expense (inc Salaries) D 12571 11963
Operating Income (EBIDTA) E=C-D 4564 3933
Depreciation F 1550 1462
Amortization (Assumed)   0 0
Operating Income after Depreciation (EBIT) G=E-F 3014 2471
Interest Income H 38 21
Other Income (Net) I -11 -19
Net Income from other sources J=H+I 27 2
Total Operating Income Including Other income (EBIT) K=G+J 3041 2473
Interest expenses L 142 160
Income Before Tax (EBT) M=K-L 2899 2131
Tax Expenses N 1093 864
Net Income(Profit After Tax) O=M-N 1806 1449

Dividends Paid P 101  

Dividend Per Share ($) Q 0.33 0.29
Equity Capital and Reserves R 11511 9588
 

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Current Assets S 6464 5269
Cash and Equivalents T 1937 1039
Receivables (Debtors) U 3516 3297
Inventories(Spare parts, supplies and fuel, less allowances of
$150 and $142) V 308 250
Deferred Income Taxes   539 510
Others   164 173
 
Net Fixed Assets (after Depreciation) W 22690 20404
 
Total Assets X=S+W 29154 25673
 
Current Liabilities Y 5473 4734
Short Term Debt Z 850 369
Payable (Creditors) AA 1908 1739
Others   2715 2626
 
Long Term Liabilities BB 5706 6082
Long term Debt CC 1592 2427
Others   4114 3655
 
Total Liabilities DD=Y+BB 11179 10816

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RATIO ANALYSIS
  Formula 2006 2005
Profitability Ratios      
       
Gross Profit (C/A)*100 53.06% 54.14%
Cost of Sales to Sales (B/A)*100 46.94% 45.86%
Operating Expenses to Sales (D/A)*100 38.93% 40.74%
Operating Profit to Sales (E/A)*100 14.13% 13.39%
Taxation to Sales (N/A)*100 3.38% 2.94%
Profit Before Tax to Sales (M/A)*100 8.98% 7.26%
PAT to Sales (O/A)*100 5.59% 4.93%

Gearing Ratios      
       
Debt Ratio (TA/TL) (DD/X)*100 38.34% 42.13%
Equity Ratio (Capital
Reserves/TA) (R/X)*100 39.48% 37.35%
Debt Equity Ratio (TL/Capital
Reserves) (DD/R)*100 97.12% 112.81%
Investment Ratios      
ROCE (PBIT/Capital
Reserves+LTL) (K/(R+BB))*100 17.66% 15.78%

Liquidity Ratios      
Current Assets Ratio S:Y 1.18 1.11
Acid Test Ratio (S-V):Y 1.12 1.06

Efficiency Ratios      
Total Assets turnover (A/X) 1.11 1.14
Sales on Net Assets (A/(X-DD)) 1.80 1.98
Creditors Turnover days Ratio (Z/A)*365 10 5
Debtors Turnover days Ratio (U/A)*365 40 41
Stock Turnover days (V/A)*365 4 4

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 FEDERAL EXPRESS

VERTICAL
YEAR
ANALYSIS
Horizontal
% of % of Analysis
    2006 Revenue 2005 Revenue values
Revenues A 32294 100 29363 100 9.98
Cost of Goods
Sold B 15159 46.94 13467 45.86 12.56
             
Gross Profit C=A-B 17135 53.05 15896 54.14 7.79
             
Selling, Gen. &
Administrative
Expense (inc
Salaries) D 12571 38.92 11963 40.74 5.08
             
Operating
Income
(EBIDTA) E=C-D 4564 14.13 3933 13.39 16.04
             
Depreciation F 1550 4.8 1462 4.98 6.02
             
Operating
Income after
Depreciation
(EBIT) G=E-F 3014 9.33 2471 8.42 21.97
             
Interest
Income H 38 0.11 21 0.07 80.95
Other Income
(Net) I -11 -0.03 -19 -0.06 -42.11
Net Income
from other
sources J=H+I 27 0.08 2 0.01 1250.00
             
Total
Operating
Income
Including
Other income
(EBIT) K=G+J 3041 9.41 2473 8.42 22.97
             
Interest
expenses L 142 0.44 160 0.54 -11.25

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 FEDERAL EXPRESS

             
Income
Before Tax M=K-
(EBT) L 2899 8.97 2131 7.26 36.04
             
Tax Expenses N 1093 3.38 864 2.94 26.50
             
Net
Income(Profit O=M-
After Tax) N 1806 5.5923701 1449 4.93 24.64

References

www.fedex.com
www.investopedia.com

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