Since the 2008-2009 recession, they economy has started to get back on its feet. Nearly every industry is somewhat reliant on the transportation industry, and as a result, the transportation industry has benefited. UPS, FedEx, and Southwest all have experienced growth and increased revenues as the economy has recovered. All three companies have shown an increase in net receivables, as well as an increase in current assets. In 2011, Southwest report 970 million in goodwill, after two years of none. This shows that they were able to purchase another company, signaling that their growth is getting back on track. FedEx in particular has made substantial recoveries. In 2009, net income was 98 million. By 2011, it was up to 1.4 billion! FedEx can attribute their substantial increase in income to a reduction in non-recurring operating expenses, which in 2009 were 1.2 billion; now they are 89 million. Something extreme must have happened in the company to cause such a high figure. In terms of net income, all three companies but Southwest have experienced significant increases, with UPS up 80% from 2009. Overall, the outlook of the transportation industry looks bright as the economy recovers and things get back on track.
http://finance.yahoo.com/q/bs?s=UPS+Balance+Sheet&annual
http://finance.yahoo.com/q/bs?s=FDX+Balance+Sheet&annual
http://finance.yahoo.com/q/bs?s=luv+Balance+Sheet&annual
http://finance.yahoo.com/q/is?s=UPS&annual
http://finance.yahoo.com/q/is?s=FDX+Income+Statement&annual
http://finance.yahoo.com/q/is?s=LUV+Income+Statement&annualHow
has the recession (2008-2009) affected companies’ balance sheets?
You mentioned that almost every industry is reliant on the transportation industry, but included that Southwest's increase wasn't as significant as the others. Do you think the low increase, maybe decrease for Southwest, is because they provide services to specific regions?
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