Assignment:
Question 1. 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
Question 2. Explain and evaluate your results as they pertain to profitability, debt, and asset turnover for the company over a three-year period.