Fedex Analysis Essay Example | Topics and Well Written Essays - 1000 words

Fedex outline - Essay ExampleShareholders expressed their dissatisfaction, in the latest shareholders meeting, on hard-hittingness of management of the lodges resources. The shareholders are justified in their opinion because even though the community describe strong favourableness ratios, its activity rations are very weak. Activity ratios such as days of gross sales receivables, days of sales in inventory, accounts receivables turnover, inventory turnover, and asset turnover ratio are too weak to warrant hold out opinion from shareholders. Ratios such as return on assets and profitability ratios are however high and should be appreciated. The companys management of its resources is worse than that of its main competitor, FedEex, because its ratios are worse than ratios that FedEx posted on activity. In days sales receivables, for example, UPS reported values higher 300 days in its considered periods while FedEex reported 43.31 days. In order to improve the companys situation , I can ensure implementation of effective marketing strategies for better turnover and introduce new policies for credit sales.As a loans officer for a commercial lender, I would approve the companys request for a loan. I would concur with the companys position that its stock is undervalued because of the unjustified shareholders opinion on the company, which whitethorn be shared by potentials investors to have adverse effects on the companys stock prices. In addition, the buyback may improve value of its stock. Taken as a short-term loan, it bequeath reduce strength of the companys current ratio and quick ratio because of increased value of current liabilities when current assets die hard constant. If taken as a long-term loan then it will worsen the companys debt ratio that is already weak, below 1.0. Debt to equity ratio, which is already weak, will worsen because while the load will increase the