Income Statement Analysis/Insights

User Generated

elzoenqyrl

Business Finance

Description

Review your organization's Income Statement or the Fedex 2014 Annual Report (pp. 42 - 46 and notes begin p. 47). Discuss your general insights in addition to one of the following:

Option 1) Choose a line item from the Income Statement and describe it in detail. What insights could be drawn from this and the "Notes to the Financial Statement"?

  • What was the trend?
  • What does this mean for the organization (what steps might management need to take, how does it impact overall strategy)?

OR

Option 2) Choose a financial ratio that applies to the Income Statement (e.g.: Return on Sales, EBITDA, etc.). Describe the ratio.

  • What does the ratio measure?
  • Is a large number good or bad?
  • How is it trending?
  • What does your analysis indicate about the company (what steps might management need to take, how does it impact overall strategy)?

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Explanation & Answer

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Running Head: INCOME STATEMENT ANALYSIS

Income Statement Analysis
Name
Tutor
Institution
Date

1

INCOME STATEMENT ANALYSIS

2

Income Statement Analysis
From the FedEx, income statement provided the overall volume of business
transactions has been on the rise since 2012 to 2014, as business revenues increased from
44,287 million dollars in 2013 to 45,567 million dollars in 2014 (FedEx Annual Report 2014,
2014). This has resulted from the infiltration of FedEx Corporation into new markets and thus
an increased customer base. The company has also made more purchases of newer aircraft,
buses and other automobiles relatively increasing its overall cost of purchased transportation
over the years. The company also showed a significant rise in earnings in 2014.
Financial Ratio
Financial ratios or accounting ratios that are primarily used for comparison
purpose(Goel,2015). The ratios are generated from numerical values contained in a c...


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