FedEx Corp. (NYSE:FDX)

The financial data over the observed periods reveals several notable trends in the intangible assets composition.

Goodwill

The goodwill balance exhibited fluctuations, initially increasing from 6,372 million USD in 2020 to a peak of 6,992 million USD in 2021. Subsequently, it declined to 6,435 million USD in 2023, before rising again to 6,603 million USD by 2025. This pattern suggests intermittent acquisitions or reassessments coupled with occasional write-downs or disposals.

Customer Relationships

This asset category showed a gradual declining trend from 641 million USD in 2020 down to 570 million USD in 2024. A slight recovery to 580 million USD in 2025 was observed. The overall decrease indicates amortization effects or impairment impacts slightly outweighing new asset recognition in this segment.

Technology

The value assigned to technology assets remained relatively flat around the mid-60s range from 2020 through 2024. A significant increase to 132 million USD in 2025 stands out, signaling a considerable investment or capitalization of new technology-related assets in the latest period.

Trademarks and Other

Trademarks and other intangible assets rapidly declined from 132 million USD in 2020 to just 1 million USD in 2021, and remained stable at that level through 2025. This sharp decrease suggests a reclassification or disposal of these assets early in the period with little to no new additions thereafter.

Other Intangible Assets (Gross Carrying Amount)

A downward trend is apparent, with values decreasing from 838 million USD in 2020 to 633 million USD in 2024, followed by a rebound to 713 million USD in 2025. This pattern might reflect amortization or impairment expenses reducing the carrying value, partially offset by new acquisitions or capitalizations towards the end of the period.

Accumulated Amortization

The accumulated amortization steadily increased from -516 million USD in 2020 to -508 million USD in 2025, with a slight dip in 2021. The negative values signify growing amortization charges over the course of the period, consistent with ongoing consumption of intangible assets' value.

Other Intangible Assets (Net Book Value)

The net book value decreased consistently from 322 million USD in 2020 to 181 million USD in 2024, with a modest increase to 205 million USD in 2025. This trend aligns with the amortization impact reducing asset values, alongside a minor recovery possibly due to new asset additions or revaluations in the final period.

Goodwill and Other Intangible Assets (Total)

The aggregate total saw an increase from 6,694 million USD in 2020 to 7,314 million USD in 2021, followed by declines to 6,604 million USD in 2024 and a subsequent rise to 6,808 million USD in 2025. This overall movement reflects the interplay of goodwill fluctuations and intangible assets' amortization and additions.

In summary, the data indicates relatively stable but nuanced changes in intangible assets. Goodwill shows variability likely due to acquisition and impairment activities, while customer relationships show gradual amortization. Technology assets exhibit a significant investment in the latest period. The steep drop in trademarks indicates early restructuring of that asset class. The amortization effects are evident in the net book value declines, partially mitigated by recent asset additions.

The financial data reveals several notable trends over the six-year period ending May 31, 2025.

Total Assets

Reported total assets increased from 73,537 million US dollars in 2020 to 87,627 million in 2025, showing a steady upward trend, albeit with slowing growth after 2023. Adjusted total assets, which exclude goodwill, also rose significantly from 67,165 million to 81,024 million over the same period, following a similar growth pattern but remaining consistently lower than reported assets due to goodwill adjustments.

Common Stockholders’ Investment

Reported common stockholders’ investment expanded considerably from 18,295 million in 2020 to 28,074 million in 2025. Adjusted common stockholders’ investment, reflecting adjustments for goodwill, followed the same upward trend but started at a significantly lower base (11,923 million in 2020) and increased to 21,471 million by 2025. This indicates a substantial portion of equity attributable to goodwill, with the gap between reported and adjusted values widening over time.

Net Income

Reported net income demonstrated considerable volatility. It rose sharply from 1,286 million in 2020 to 5,231 million in 2021, then declined to 3,826 million in 2022 before stabilizing around 4,000 million in subsequent years, finishing at 4,092 million in 2025. Adjusted net income, accounting for goodwill effects, was slightly higher than reported in 2020 and closely matched reported figures in later years, indicating that adjustments had a diminishing impact on net income figures beyond the initial period.

The financial data reveals several notable trends in profitability, asset utilization, and leverage metrics over the analyzed periods. A comparison between reported and adjusted figures provides insight into the impact of goodwill adjustments on the financial ratios.

Net Profit Margin

The reported net profit margin increased significantly from 1.86% in 2020 to a peak of 6.23% in 2021, followed by a decline to 4.09% in 2022. It then experienced a gradual increase through 2024, reaching 4.94%, before declining slightly to 4.65% in 2025. The adjusted net profit margin closely tracks the reported figures, differing slightly only in 2020 and 2023, where it shows marginally higher profitability, indicating that adjustments had a modest positive effect on perceived margins in those years.

Total Asset Turnover

The reported total asset turnover ratio exhibited a rising trend from 0.94 in 2020 to a peak at 1.09 in 2022, suggesting improved efficiency in utilizing assets to generate revenue. However, it declined slightly thereafter to 1.01 in 2024 and 1.00 in 2025. The adjusted asset turnover ratios are consistently higher than the reported figures, starting at 1.03 in 2020, peaking at 1.18 in 2022, and moderating slightly to 1.09 in 2025. This suggests that removal of goodwill from assets presents a better efficiency metric throughout the period.

Financial Leverage

The reported financial leverage ratio decreased steadily from 4.02 in 2020 to 3.12 by 2025, indicating a reduction in the reliance on debt or liabilities relative to equity. The adjusted financial leverage shows a more pronounced decline, from 5.63 in 2020 down to 3.77 in 2025, reflecting the removal of goodwill effects and suggesting an underlying trend toward lower gearing and improved capital structure health over time.

Return on Equity (ROE)

The reported ROE surged from 7.03% in 2020 to a high of 21.64% in 2021, before declining sharply to 15.34% in 2022. It remained relatively stable around 15% to 16% through 2025, with a slight drop to 14.58%. Adjusted ROE presents a similar pattern but at significantly higher levels, peaking at 30.46% in 2021 and stabilizing around 19-20% in subsequent years. This indicates that after removing goodwill, equity returns appear stronger and more impressive.

Return on Assets (ROA)

Reported ROA mirrors the net profit margin and asset turnover trends, starting at 1.75% in 2020, peaking at 6.32% in 2021, and then moderating to approximately 4.67% by 2025. Adjusted ROA figures are consistently higher, rising from 2.45% in 2020 to 6.90% in 2021, and then showing a slight increase over time to 5.37% in 2024 before a minor decline to 5.05% in 2025. This suggests that the asset base excluding goodwill better reflects the company’s true asset profitability.

Overall, the data reflects an improvement in profitability and efficiency peaking in 2021, followed by a normalization phase in subsequent years. The adjusted ratios, reflecting goodwill removal, depict stronger financial performance and healthier asset utilization and leverage structure. The gradual reduction in financial leverage combined with stable profitability metrics suggests a strategic move towards more sustainable capital management. The slight declines in margins and profitability ratios in the later years indicate some challenges to maintaining the peak performance levels observed in 2021.

Net Income Trends

The reported net income experienced a significant increase from 1,286 million US dollars in 2020 to a peak of 5,231 million US dollars in 2021. Following this peak, there was a decline to 3,826 million US dollars in 2022, with a slight recovery to 4,331 million US dollars by 2024. However, the figure decreased marginally to 4,092 million US dollars in 2025. The adjusted net income mirrors this pattern closely, showing a similar peak and subsequent fluctuation over the same periods.

Net Profit Margin Analysis

The reported net profit margin shows an increasing trend from 1.86% in 2020 to a high of 6.23% in 2021. Afterward, it declines to 4.09% in 2022 and experiences a gradual upward movement to 4.94% in 2024. The margin then dips slightly to 4.65% in 2025. The adjusted net profit margin follows an almost identical pattern, with a minor difference in 2020 where the margin was 2.38% as opposed to the reported 1.86%.

General Observations

The data indicates a strong performance improvement in 2021, followed by a period of stabilized but slightly reduced profitability in subsequent years. The close alignment between reported and adjusted figures suggests limited impact from goodwill adjustments on reported profitability metrics during the periods examined. Overall, the company showed resilience with net income and profit margins remaining above early period levels after the 2021 peak.

The analysis of the financial data reveals several notable trends regarding the company's asset base and efficiency over the examined period.

Total Assets

Reported total assets demonstrate a consistent upward trajectory from 73,537 million USD in May 2020 to 87,627 million USD in May 2025, reflecting steady asset growth over the five-year span. The adjusted total assets, which exclude goodwill, similarly increase from 67,165 million USD to 81,024 million USD, indicating that the core asset base excluding intangible assets has also expanded steadily, though at a slightly lower absolute level compared to reported assets.

Total Asset Turnover

The reported total asset turnover ratio shows an overall increase from 0.94 in May 2020 to a peak of 1.09 in May 2022, followed by a gradual decline to 1.00 by May 2025. This pattern suggests improved efficiency in generating revenue from assets up to 2022, with a slight reduction in efficiency thereafter. In contrast, the adjusted total asset turnover ratio—reflecting asset productivity after removing goodwill—starts higher at 1.03 in May 2020, rises steadily to a peak of 1.18 in May 2022, and then declines to 1.09 by May 2025. This indicates that the operational asset base excluding goodwill has consistently maintained higher turnover rates compared to the reported asset base, although it follows a similar pattern of peaking mid-period then experiencing a moderate decrease.

Overall, the data indicate that the company has been expanding its asset base steadily while experiencing improvements in asset utilization up to the 2022 fiscal year. Post-2022, there is a modest decline in turnover ratios, signaling a slight reduction in asset efficiency. The differential between reported and adjusted figures suggests goodwill has a marginally dilutive effect on reported asset turnover, highlighting the importance of assessing operational efficiency on an adjusted basis.

The data reveals several notable trends in the financial position over the reported periods, with and without goodwill adjustments.

Total Assets

Both reported and adjusted total assets show a consistent upward trend from 2020 to 2025. Reported total assets increase from $73,537 million in 2020 to $87,627 million in 2025, representing a moderate but steady growth. The adjusted total assets follow a similar pattern, rising from $67,165 million to $81,024 million over the same period. The gap between reported and adjusted totals suggests the presence of goodwill and other intangible assets adjustments, which have a moderate impact on measured asset size.

Common Stockholders’ Investment

Reported common stockholders’ investment displays a significant increase from $18,295 million in 2020 to $28,074 million in 2025. Adjusted common stockholders’ investment, which excludes goodwill and likely other intangible assets, rises more sharply from $11,923 million to $21,471 million in the same timeframe. This highlights an improving equity base under both measures, with the adjusted figures reflecting a more conservative view of net equity attributable to owners.

Financial Leverage

Financial leverage ratios, calculated as total assets divided by common stockholders' equity, reveal a declining trend over the six-year span for both reported and adjusted figures. Reported financial leverage decreases from 4.02 in 2020 to 3.12 in 2025, indicating reduced reliance on debt or liabilities relative to equity. Adjusted financial leverage is consistently higher, starting at 5.63 and dropping to 3.77 by 2025, which underscores the effect of goodwill adjustment on equity and leverage metrics. The downward trend in leverage ratios suggests a strengthening capital structure and a gradual reduction in financial risk.

The financial data reveals several notable trends regarding profitability, equity, and returns over the observed period.

Net Income Trends

Reported net income shows a substantial increase from 2020 to 2021, rising from 1,286 million USD to 5,231 million USD. After this peak, it declines notably in 2022 to 3,826 million USD, followed by modest increases in 2023 and 2024, reaching a high of 4,331 million USD. However, in 2025, a slight decrease to 4,092 million USD is observed. Adjusted net income follows a similar pattern, with identical values from 2021 onwards, implying minimal adjustments after 2020.

Equity Investment Trends

Reported common stockholders’ investment steadily increases over the entire period, starting from 18,295 million USD in 2020 and growing to 28,074 million USD in 2025. Adjusted common stockholders’ investment shows a parallel upward trend but at consistently lower values, starting at 11,923 million USD in 2020 and reaching 21,471 million USD by 2025, indicating significant goodwill or other adjustments affecting equity.

Return on Equity (ROE) Trends

Reported ROE exhibits volatility, increasing sharply from 7.03% in 2020 to 21.64% in 2021, then gradually declining to 14.58% by 2025. Adjusted ROE demonstrates a more pronounced peak of 30.46% in 2021, falling steadily but remaining above reported ROE levels, ending at 19.06% in 2025. This suggests that adjustments lead to a higher perceived efficiency in equity utilization across the period, though the overall downward trend indicates decreasing profitability relative to equity after the peak year.

Overall Insights

The data reflects a strong performance spike in 2021, both in income and returns, followed by a normalization phase with reduced net income and ROE. The divergence between reported and adjusted figures for common stockholders’ investment and ROE points to significant goodwill or similar intangible assets impacting reported equity, which in turn affects profitability ratios. Despite the fluctuations, the company maintains positive and relatively stable profitability and equity growth, with adjusted measures suggesting higher underlying performance efficiency than reported figures indicate.

Net Income Trends

Between May 31, 2020, and May 31, 2025, reported net income exhibits significant fluctuations. Initially, it rose sharply from 1,286 million USD in 2020 to a peak of 5,231 million USD in 2021, followed by a decline to 3,826 million USD in 2022. Subsequently, it stabilized and showed moderate growth, reaching 4,331 million USD in 2024 before a slight decrease to 4,092 million USD in 2025. The adjusted net income values mirror the reported figures closely from 2021 onwards, with a minor difference in 2020 and 2023, indicating that goodwill adjustments have limited impact on net income figures after 2020.

Total Asset Developments

Reported total assets steadily increased from 73,537 million USD in 2020 to a high of 87,143 million USD in 2023. Thereafter, the asset base shows minor reductions and relative stabilization, ending at 87,627 million USD in 2025. The adjusted total assets, which remove goodwill, follow a similar rising trend but remain consistently lower than reported assets across all years. The gap between reported and adjusted assets is substantial, reflecting the material impact of goodwill on the balance sheet. Adjusted total assets increased by approximately 20.6% over the five-year period, indicating underlying asset growth excluding goodwill effects.

Return on Assets (ROA) Analysis

Reported ROA increased markedly from 1.75% in 2020 to 6.32% in 2021, then declined to 4.45% in 2022 before gradually climbing again to 4.98% in 2024 and slightly decreasing to 4.67% in 2025. Adjusted ROA shows a similar trajectory but consistently higher values than reported ROA, ranging from 2.45% in 2020 up to 6.90% in 2021 and settling around 5.05% in 2025. This suggests that excluding goodwill, the asset base is relatively more efficient in generating net income. The disparity between reported and adjusted ROA highlights the dilutive effect goodwill has on return computations.

Overall Observations

Financial performance, as measured by net income and ROA, peaked notably in 2021 and then moderated to a stable, slightly lower level through 2025. The adjustments for goodwill reveal a more conservative but consistent trend, implying the company’s actual operating assets perform better than the reported figures suggest when adjusted for intangible asset inflation. The stability in total assets after 2023 indicates a period of consolidation or limited new investments. The analysis points to a strong recovery and performance in 2021 followed by a normalization phase with steady profitability and asset utilization.