Stock Analysis on Net

FedEx Corp. (NYSE:FDX)

Analysis of Debt

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Total Debt (Carrying Amount)

FedEx Corp., balance sheet: debt

US$ in millions

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Current portion of long-term debt 146  51  964  1,342  22  29 
Long-term debt, less current portion 20,733  21,952  16,617  15,243  14,909  13,838 
Total long-term debt (carrying amount) 20,879  22,003  17,581  16,585  14,931  13,867 

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

Debt item Description The company
Total long-term debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. FedEx Corp. total debt increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Total Debt (Fair Value)

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May 31, 2021
Selected Financial Data (US$ in millions)
Long-term debt, including current maturities and exclusive of finance leases 23,100 
Finance lease obligations 525 
Total long-term debt (fair value) 23,625 
Financial Ratio
Debt, fair value to carrying amount ratio 1.13

Based on: 10-K (reporting date: 2021-05-31).


Weighted-average Interest Rate on Debt

Weighted average interest rate on long-term debt: 3.40%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.40% 20,879  710 
Total 20,879  710 
3.40%

Based on: 10-K (reporting date: 2021-05-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 710 ÷ 20,879 = 3.40%


Interest Costs Incurred

FedEx Corp., interest costs incurred

US$ in millions

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12 months ended: May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Interest expense 793  672  588  558  512  336 
Capitalized interest 68  54  64  61  41  42 
Interest costs incurred 861  726  652  619  553  378 

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. FedEx Corp. interest expense increased from 2019 to 2020 and from 2020 to 2021.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. FedEx Corp. capitalized interest decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. FedEx Corp. interest costs incurred increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Interest Coverage Ratio

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Net income 5,231  1,286  540  4,572  2,997  1,820 
Add: Income tax expense 1,443  383  115  (219) 1,582  920 
Add: Interest expense 793  672  588  558  512  336 
Earnings before interest and tax (EBIT) 7,467  2,341  1,243  4,911  5,091  3,076 
 
Interest costs incurred 861  726  652  619  553  378 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 9.42 3.48 2.11 8.80 9.94 9.15
Adjusted interest coverage ratio (with capitalized interest)2 8.67 3.22 1.91 7.93 9.21 8.14

Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 7,467 ÷ 793 = 9.42

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 7,467 ÷ 861 = 8.67


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). FedEx Corp. adjusted interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.