Final Comparison Report - UPS and FedEx

Essay by deeUUniversity, Bachelor'sA+, August 2006

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This paper will provide a final report on the 2 publicly traded companies, Federal Express (FedEx) and United Parcel Services (UPS). These companies have been doing well in providing package shipping and delivery for businesses and consumers. The information included in this paper will illustrate the company overviews, their products, services, and highlights their most recent annual reports. These reports are intended to provide investors, creditors, and shareholders a glimpse into the financial successes and challenges a company goes through in a given year, with a look ahead into their future growth strategy. It will include both cash flow statements and ratio analysis. In addition, this paper will also exemplify areas of cash flow, operating, and profitability analysis for each company

Company Overview

According to its corporate history webpage, FedEx was the brainchild of Frederick W. Smith ( In 1971, Smith purchased the controlling interest in the Arkansas Aviation Sales Company.

Today, FedEx has a wide array of products and services to offer the consumer and business clients. They include package and envelope services, office and print services (FedEx/Kinkos), freight services, and expedited services.

UPS began to provide air service deliveries in 1929 through private airlines. However, due to the great depression, air service deliveries stopped that same year. In 1953, UPS started providing two-day service to most metropolitan areas. Today, UPS has developed into a 36 billion dollar company. They offer a wide variety of products and services which they also offer to consumers and businesses. These include air and motor cargo, UPS Capital financial services, consulting services and professional services

This part of the paper will identify how UPS and FedEx faired in these areas for their last three fiscal years. In addition, it will identify and interpret some leverage, liquidity, efficiency, and profitability ratios for...