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FedEx Discussions
On road time and new leads
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<blockquote data-quote="MrFedEx" data-source="post: 1216329" data-attributes="member: 12508"><p>FedEx is a capital-intensive business, as are most transportation companies. Big trucking companies and airlines typically have very high operating ratios. If you really think about it, FedEx Express is a trucking company supported by a fleet of cargo jets, meaning that there is a great deal of overhead and mostly fixed costs. Fred wants an operating ratio of 90 (10% profit), which isn't realistic given the basic structure of the company. That isn't going to stop him from trying, and that means cutting <strong>your </strong>check to get his 10%. This is why the takeaways aren't going to stop...they're going to accelerate. Count on it.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1216329, member: 12508"] FedEx is a capital-intensive business, as are most transportation companies. Big trucking companies and airlines typically have very high operating ratios. If you really think about it, FedEx Express is a trucking company supported by a fleet of cargo jets, meaning that there is a great deal of overhead and mostly fixed costs. Fred wants an operating ratio of 90 (10% profit), which isn't realistic given the basic structure of the company. That isn't going to stop him from trying, and that means cutting [B]your [/B]check to get his 10%. This is why the takeaways aren't going to stop...they're going to accelerate. Count on it. [/QUOTE]
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