FINC300 Foundations of Financial Management

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FINC300 FOUNDATIONS OF FINANCIAL MANAGEMENT

Financial Management

Year 2015 was transformative for FedEx where it was able to achieveoutstanding financial results, with powerful customer solutions withactions that generated increased company value to the shareholder(FedEx Corporation, 2014). On the other hand, DHL emerged as numberone provider of parcel and mail services. The company invested innetwork as well as how they could expand them. The company hasmaintained the intention of being renowned globally and not customercentric company but leader in quality (DHL, (2014).

In year 2014, the financial highlights of FedEx were as follows:

Operational results 2014 2013

Revenues $45,567 $44,287

Operating income 3,446 2,551

Operational margin 7.6% 5.8%

Net income 2,097 1,561

Capital expenditure 3,533 3,375

Return on sales 4.8% 4.7%

According to the company reports, the revenues and earnings of 2014increased. The increment in the earnings and revenues was due toimproved performance of the company’s overall transportationsegments. As well, the company’s 2014 results benefited from thelow pension expenses.

In year 2014, the financial highlights of DHL were as follows:

Operational results 2014 2013

Revenues $38,071 $39,091

Operating income 2,567 2,392

Operational margin 6.4% 6.8%

Net income 1,345 1,654

Capital expenditure 2,672 2,490

Return on sales 5.2 % 5.6%

According to the company reports, there was change in the companyrevenue which was caused by increased volume at DHL Ground as well asoversees operations that yielded increased DHL operations (DHL,(2014). At DHL ground segment, the revenue increased by almost 10percent caused by higher volume market share gains as well asincreased yields due to rate increase. On the other hand, FedExrevenues increased by almost 7 percent due to high average LTLshipments as well as revenue per LTL shipment (FedEx Corporation,2014).

References:

DHL, (2014). Audited Financial Report. Retrieved on 13thJanuary 2016, from:http://www.dpdhl.com/content/dam/dpdhl/Investors/Events/Reporting/2015/ar14/DPDHL_2014_Annual_Report.pdf

FedEx Corporation, (2014). Audited Financial Report. Retrievedon 13th January 2016, from:http://annualreport.van.fedex.com/2014/docs/FedEx_2014_Annual_Report.pdf

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