FedEx and UPS compare common size financials, ratios, and certain stock value metrics
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Need help editing power point presentation. Needs to be more in depth and specific with the analysis. • Section 1: Common Size and Ratio Analysis: Common Size Income Statements for your company and one competitor. This is where you divide each line item on the income statement by net sales (or net revenue).Then compare the gross profit margin, net profit margin and growth of the two companies. Are the companies growing? Is the growth organic (growth generated from new products, getting new customers, etc.) or is it generated via acquisitions. Why are the margins of the two companies different? Do they sell different products? Do they focus on different segments of the market? You can often find good analysis in the 10-K under “Management Discussion and Analysis”. • Ratio Analysis: Calculate the profit margin, the return on assets, asset turnover, and return on equity for the last full year for your company and a competitor (use the same competitor). Comment on whether the ratios are improving or not. Give the reasons why. • Read the most recent financial press release and one or two investor presentations about your company. Briefly describe what they focus on. Do they solely focus on financial metrics? Do they create other metrics and use those as well? Is the press release clear and easy to understand or difficult? • Section 2: Stock Analysis: You will review your stock and the stock of the competitor(s) you have chosen. What is the PE ratio, PEG ratio and Market Cap of the companies? How have the stocks performed over the last 12 months? How risky is the stock, based on the valuation and does it represent a good investment going forward or is it overvalued. What are the major risks that stock analysts have for the company? Have they outperformed the market in the last 12 months (compared against the DJIA and the S&P 500)?