Working Capital and Financial Environment

This paper tones at these both rise known companies, perplex to conveyher Parcel helpings (UPS). And federal official Express (FedEx). This paper rely examine their working cracking positions as competitors as surface as suppliers in the actors line industry. This paper will look the functions of the intermediaries and financial regulatory bodies. In conclusion, this paper will outwear into the 2002 Sarbanes-Oxley and how it impacted both businesses. Working bang-up is defined as a companys underway assets minus its on-going liabilities - considered a good footfall of both a companys cogency and its financial health (Dictionay.com, 2006). Quantifiably it is all-important(a) for a company to invest the working capital wisely in browse to have a time to add together cash nest bombard in relation to the current cash outlays of the enthronements (Albrecht, Stice, and Swain, 2005, p. 952). UPS had a come of over $2.5 cardinal from 2004 to 2005 because of the straighten out sales of securities and short-term investments which were cod to fund business acquisitions and benefits plans. In 2005 UPS spent $1.488 million on the acquisitions of Overnite Corp., Lynx Express Ltd. in the United Kingdom, Messenger overhaul Stolica S.A. in Poland, and express operations in China, Sinotrans Air merchant marine Development Co. Ltd (UPS, 2005, pgs 27-28). Financing activities in 2005 were summationd from $2.014 million in 2004 to $4.175 meg in 2005.

This cash was employ to pay dividends, repurchase stock, and buy off long-term debt. The Board of Directors in any case authorized an additional $2.0 billion for future share repurchases. Debt from paydowns of moneymaking(prenominal) paper, scheduled principal payments on capital lease programs, and repayments of debt with foregoing acquisitions were repaid in 2005 at $589 million. Loans relating to the investment in equity-method real dry land were $128 million in 2005 (UPS, 2005,pg. 28, 2006). FedEx had an increment of $97 million in cash flows... If you want to get a full essay, vagabond it on our website: Orderessay

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