Analysis of Debt
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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Total Debt (Carrying Amount)
FedEx Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
- Current portion of long-term debt
- The current portion of long-term debt exhibited significant fluctuations over the observed period. Initially, it increased from 51 million in 2020 to 146 million in 2021, before decreasing to 82 million in 2022. Subsequently, it rose again to 126 million in 2023 and then declined to 68 million in 2024. A notable spike occurred in 2025, with the amount increasing sharply to 1,428 million, representing a substantial rise compared to previous years. This sharp increase in the current portion indicates a considerable upcoming debt maturity or reclassification in the latest period.
- Long-term debt, less current portion
- The long-term debt excluding the current portion shows a gradual downward trend overall. Starting at 21,952 million in 2020, it decreased to 20,733 million in 2021, followed by a slight decline to 20,182 million in 2022. In 2023, the figure rose marginally to 20,453 million, then dropped again to 20,135 million in 2024, continuing the overall decreasing trend. By 2025, this amount further decreased to 19,151 million. The steady reduction suggests ongoing repayment or refinancing of long-term obligations.
- Total long-term debt, including current maturities (carrying amount)
- Total long-term debt, which combines both current portions and amounts due beyond one year, also demonstrated a general decline from 22,003 million in 2020 to 20,879 million in 2021, and further down to 20,264 million in 2022. It then slightly increased to 20,579 million in 2023, followed by a decrease to 20,203 million in 2024. Interestingly, in 2025, the total long-term debt rose modestly to 20,579 million, aligning with the rebound seen in the current portion of long-term debt. This suggests a reclassification or restructuring effect impacting the composition of the debt rather than a significant change in the overall debt burden.
- Overall analysis
- The data reveals relatively stable long-term debt levels with a slow and steady decline in the non-current portion. The sharp increase in the current portion of long-term debt in the most recent period indicates a significant reclassification or an upcoming maturity event, representing a potential change in the company's debt structure or repayment schedule. The total long-term debt remains relatively stable with slight fluctuations, which may reflect ongoing management of the debt portfolio through repayments, refinancing, or restructuring activities. Monitoring upcoming maturities and liquidity related to the current portion will be important in assessing financial risk going forward.
Total Debt (Fair Value)
| May 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt, including current maturities and exclusive of finance leases | |
| Finance lease obligations | |
| Total long-term debt, including current maturities (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2025-05-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2025-05-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
FedEx Corp., interest costs incurred
US$ in millions
| 12 months ended: | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense | |||||||||||||
| Capitalized interest | |||||||||||||
| Interest costs incurred |
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
- Interest Expense
- The interest expense exhibited a fluctuating trend over the analyzed periods. Starting at $672 million in May 2020, it increased to a peak of $793 million in May 2021. This was followed by a decline to $689 million in May 2022, and a relatively stable figure around the mid-690s for May 2023. A subsequent upward trend is noted with increases to $745 million in May 2024 and $789 million in May 2025, nearing the previous peak.
- Capitalized Interest
- Capitalized interest showed variability across the years without a clear directional trend. Beginning at $54 million in May 2020, it rose to $68 million in May 2021 and then showed minor fluctuation with $62 million in May 2022. In May 2023, capitalized interest reached a higher level of $77 million and maintained near that level at $81 million in May 2024 before declining significantly to $55 million in May 2025.
- Interest Costs Incurred
- The total interest costs incurred, combining the interest expense and capitalized interest, followed a pattern similar to the components. Starting at $726 million in May 2020, total costs increased to $861 million in May 2021, reflecting the peak in interest expense and capitalized interest. A notable decline followed to $751 million in May 2022, with a slight increase to $771 million in May 2023. The upward trajectory resumed with increases to $826 million in May 2024 and $844 million in May 2025, the highest recorded amount in the data set.
- Overall Insights
- The data indicates that the company's borrowing costs have generally increased over the five-year period, with some fluctuations. The highest interest expenses were incurred in 2021 and again near that level in 2025. Capitalized interest adds variability but does not significantly change the overall trend. The consistent rise in total interest costs incurred suggests increased financing activities or higher interest rates, with particular spikes in 2021 and the most recent years, which may warrant further investigation regarding financing strategies or market conditions influencing borrowing costs.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
2025 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
- The interest coverage ratio showed a notable improvement from 3.48 in May 2020 to a peak of 9.42 in May 2021, indicating a significant increase in the company's ability to cover interest expenses with operating income. Following this peak, the ratio declined somewhat but remained strong and stable, with values between 7.9 and 8.83 from May 2022 through May 2025. This suggests sustained solid performance in meeting interest obligations over the periods analyzed.
- Adjusted Interest Coverage Ratio (with capitalized interest)
- This adjusted ratio exhibits a trend paralleling the unadjusted interest coverage ratio, rising sharply from 3.22 in May 2020 to 8.67 in May 2021. Subsequently, the ratio decreases slightly and then stabilizes, fluctuating within a narrow range from 7.38 to 7.97 between May 2022 and May 2025. The consistent values after the initial rise imply that when accounting for capitalized interest, the company's capacity to service interest remains robust and relatively stable during the latter years.
- Overall Analysis
- Both ratios display a significant increase in interest coverage capability between 2020 and 2021, followed by a period of stable but slightly decreasing values. The stability in recent years points to ongoing financial health in terms of interest expense management. The marginal differences between the ratios suggest that capitalized interest does affect the coverage metrics but does not drastically alter the overall trend. The figures imply that the company maintains a comfortable buffer to cover interest expenses, reflecting sound operational and financial management.