Working Capital and Financial Environment

This paper ports at these two rise known companies, gravel together Parcel helpings (UPS). And Federal Express (FedEx). This paper allow for examine their working capital positions as competitors as hearty as suppliers in the delivery industry. This paper will look the functions of the intermediaries and financial regulatory bodies. In conclusion, this paper will squeeze into the 2002 Sarbanes-Oxley and how it impacted both businesses. Working capital is defined as a companys current assets minus its current liabilities - considered a ethical stair of both a companys efficiency and its financial health (Dictionay.com, 2006). Quantifiably it is all-important(a) for a company to invest the capital wisely in order to have a future interchange draw close egg in relation to the current cash outlays of the investments (Albrecht, Stice, and Swain, 2005, p. 952). UPS had a come of over $2.5 cardinal from 2004 to 2005 because of the net sales of securities and short-term investments which were apply to fund business acquisitions and benefits plans. In 2005 UPS spent $1.488 gazillion on the acquisitions of Overnite Corp., Lynx Express Ltd. in the United Kingdom, courier Service Stolica S.A. in Poland, and express operations in China, Sinotrans nimbus merchant marine Development Co. Ltd (UPS, 2005, pgs 27-28). Financing activities in 2005 were summationd from $2.014 one thousand one million million in 2004 to $4.175 billion in 2005.

This cash was used to kick in dividends, repurchase stock, and fix long-term debt. The Board of Directors also trustworthy an additional $2.0 billion for future share repurchases. Debt from paydowns of commercial paper , plan principal payments on capital lease ! programs, and repayments of debt with previous acquisitions were repaid in 2005 at $589 million. Loans relating to the investment in equity-method real estate were $128 million in 2005 (UPS, 2005,pg. 28, 2006). FedEx had an increase of $97 million in cash flows... If you want to get a full essay, order it on our website: OrderEssay.net

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