Essay

7897 Words May 19th, 2016 32 Pages
Financial PerforamAnce Analysis

Contributors: Seydi Abdishev, Slavik YA Alexander Filchev, Christine Soghomonyan
Prepared for: BUS321a_S2016 (Intermediate Accounting II)
Supervised by: Marenglen Berisha
Date: 4/30/2016

Contents Introduction 2 Financial performance of UPS 3 Growth 3 Profitability 3 Efficiency 4 Liquidity 5 Working capital management 5 Solvency 5 Conclusion 6 Financial performance of FedEx 6 Growth 6 Profitability 7 Efficiency 7 Liquidity 8 Working capital management 8 Solvency 8 Conclusion 9 Financial performance of Coca Cola Co 9 Growth 9 Profitability 11
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Revenues have increased by 2.42% in 2013, by 5.04% in 2014, and by 0.22% in 2015 reaching $58.4 billion. According to Forbes, the revenue growth in 2013 and 2014 was mostly driven by demand from the European segment of the company, where the B2C outpaced the B2B sector for the first time in 2014. However, the enviable growth in 2014 was almost offset by the lower fuel surcharges and currency headwinds, leading to a meagre 0.22% growth in 2015.

Profitability
The company’s gross profit margin has been pretty much stable during the last three years – it decreased, partly as a result of the fuel price increases in Europe, by 0.8% between 2013 and 2014 (from 75.3% in 2013 to 74.7% in 2014) but this decline was later reversed – it rose by 4.15 percent and, at the end of 2015, stood at 77.8%. When compared with the operating profit margin, the two figures again exhibit a strong positive correlation, which indicates that the company is well in control of its overheads. What is noteworthy in relation to the operating profit margin is that it declined by 33.1% between 2013 and 2014, whereas in the same period the gross profit margin decreased by only 0.8%. This divergence could be explained by the company’s significant preparations for the introduction of a new automated sorted system which resulted in $500 million in

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