Financial Portfolio Essay

3099 words - 13 pages

Financial Portfolio

FIN/402
December 24, 2012
Richard Smith

Team B Financial Portfolio
The main goal of an investor is to have the greatest possible return on investment while minimizing risk. By having a large selection of investments not only creates a diverse financial portfolio but allows for the biggest possible return. Team B has chosen a publicly traded bond Starbucks, and the stocks of The United Parcel Service, also known as UPS, The Home Depot, Inc., Wal-Mart Stores, Inc., Citigroup and Disney. The following information represents the results of our research of the above listed companies.
Starbucks Corporation Bonds
Starbucks Corporation ticker symbol on NASDAQ is SBUX. ...view middle of the document...

This corporation has been in existence since 1907 (United Parcel Service of America, 2011). UPS is a Forturne 500 company with record-breaking growth. A review of UPS corporation’s 2011 financial and investment annual reports, general economic data, and Federal Reserve data will provide the corporations current financial standing for Team B’s portfolio.
10K and Investment Reports
Upon review of UPS corporations 10K and investment reports for 2011 reveal they exceed record earnings per share (EPS), which is well surpassing their previous peak in 2007. The U.S. Domestic segment shows strong revenue growth with a significant margin expansion even with the United States current slow growth economic factor. The UPS international revenue also exceeds record revenues with a strong volume of growth continuing to outpace the market. Below is a list of UPS financial highlights for 2011 (United Parcel Service of America, 2011).
Financial Highlights
(in millions except for per-share amounts)

2011 2010
Revenue $53,105 $49,545
Operating expenses 47,025 43,904
Net Income 3,804 3,338
Adjusted net Income 4,311 3,495
Diluted earnings per share 3.84 3.33
Adjusted diluted earnings per share 4.35 3.48
Dividends declared per share 2.08 1.88
Assets 34,701 33,597
Long-term debt 11,095 10,491
Shareowners’ equity 7,108 8,047
Capital expenditures 2,005 1,389
Cash and marketable securities 4,275 4,081

General Economic Data
There are many general economic indicators that assist in the prediction of a corporation’s financial status and where the world markets are going. Upon reviewing general economic data and articles for UPS corporation, it is interesting to hear that the very own nature of UPS corporation’s business could be a useful indicator of the global retail market. Some investors believe this could be true more so than the indicators such as Gross Domestic Product (GDP) and the unemployment rate (Williams, 2011). Using UPS Corporation as the means of an economic indicator should merely be a tool or one part of the whole financial standing of UPS Corporation’s role in Team B’s portfolio.
Federal Reserve Data
The economists at the Federal Reserve Board conduct innovative research on a broad range of topics in economics and finance. This Federal Reserve Data provides another financial outlook for UPS Corporation in comparison with...

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