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Forums › OBU Forums › Suitable Profitability Ratios for UPS and Fedex
Hi Trephena,
I would like to have your suggestion, that is it appropriate to analyze Operating Profit Ratio instead of Gross Profit Margin for UPS and Fedex based on the information presented in the Financial Statement?
Thank you,
Yes -as a service industry gross margins are not really appropriate – explain this but as well as operating margins introduce other rations that demonstrate profitability. These might be ROCE, ROE or ROA (but not all 3)
Can you kindly tell me what reporting dates you used for FEDEX and UPS?
I have used their Annual Reports which was available on their website for the following years:
2017, 2018, 2019