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Case 2 : The Battle for Value, 2 0 1 6 : FedEx Corp. versus United Parcel Service, Inc. Instruction: Complete the below information. In

Case 2: The Battle for Value, 2016: FedEx Corp. versus United Parcel Service, Inc.
Instruction: Complete the below information. In the conclusion section, answer the following question: If Buffett had to choose between investing in FedEx or UPS, which would he choose? And, how does your investment decision, FedEx or UPS, compare to Precision Parts?
Business Description:
UPS:
FedEx:
Competition/Industry:
Free Cash Flow Comparison:
UPS
2012
2013
2014
2015
Sales
EBIT
Taxes (32%)
NOPAT
Current Assets (1)
Current Liabilities
PPE, Net
Total Net Operating Capital
Change in TNOC
Free Cash Flow
Assume 100% of cash and marketable securities is an operating asset.
Page 2
FedEx
2012
2013
2014
2015
Sales
EBIT
Taxes (32%)
NOPAT
Current Assets (1)
Current Liabilities
PPE, Net
Total Net Operating Capital
Change in TNOC
Free Cash Flow
Assume 100% of cash and marketable securities is an operating asset.
Financial Ratio Comparison:
UPS
2012
2013
2014
2015
NOPAT Margin
Total Asset Turnover
Return on Assets
FedEx
2012
2013
2014
2015
NOPAT Margin
Total Asset Turnover
Return on Assets
Comments on Free Cash Flow and Ratio Comparison:
Page 3
Conclusion:

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