Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

FedEx Corp., balance sheet: goodwill and intangible assets

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Goodwill	6,435)	6,544)	6,992)	6,372)	6,884)	6,973)
Customer relationships	583)	617)	591)	641)	685)	676)
Technology	62)	64)	65)	65)	66)	68)
Trademarks and other	1)	1)	1)	132)	137)	141)
Other intangible assets, gross carrying amount	646)	682)	657)	838)	888)	885)
Accumulated amortization	(412)	(381)	(335)	(516)	(472)	(405)
Other intangible assets, net book value	234)	301)	322)	322)	416)	480)
Goodwill and other intangible assets	6,669)	6,845)	7,314)	6,694)	7,300)	7,453)

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

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	FedEx Corp. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets, net book value	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	FedEx Corp. other intangible assets, net book value decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	FedEx Corp. goodwill and other intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

FedEx Corp., adjustments to financial statements

US$ in millions

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Adjustment to Total Assets
Total assets (as reported)	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Less: Goodwill	6,435)	6,544)	6,992)	6,372)	6,884)	6,973)
Total assets (adjusted)	80,708)	79,450)	75,785)	67,165)	47,519)	45,357)
Adjustment to Common Stockholders’ Investment
Common stockholders’ investment (as reported)	26,088)	24,939)	24,168)	18,295)	17,757)	19,416)
Less: Goodwill	6,435)	6,544)	6,992)	6,372)	6,884)	6,973)
Common stockholders’ investment (adjusted)	19,653)	18,395)	17,176)	11,923)	10,873)	12,443)
Adjustment to Net Income
Net income (as reported)	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Add: Goodwill impairment charges	36)	—)	—)	358)	—)	374)
Net income (adjusted)	4,008)	3,826)	5,231)	1,644)	540)	4,946)

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

FedEx Corp., Financial Data: Reported vs. Adjusted

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FedEx Corp., adjusted financial ratios

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Net Profit Margin
Reported net profit margin	4.41%	4.09%	6.23%	1.86%	0.77%	6.99%
Adjusted net profit margin	4.45%	4.09%	6.23%	2.38%	0.77%	7.56%
Total Asset Turnover
Reported total asset turnover	1.03	1.09	1.01	0.94	1.28	1.25
Adjusted total asset turnover	1.12	1.18	1.11	1.03	1.47	1.44
Financial Leverage
Reported financial leverage	3.34	3.45	3.43	4.02	3.06	2.70
Adjusted financial leverage	4.11	4.32	4.41	5.63	4.37	3.65
Return on Equity (ROE)
Reported ROE	15.23%	15.34%	21.64%	7.03%	3.04%	23.55%
Adjusted ROE	20.39%	20.80%	30.46%	13.79%	4.97%	39.75%
Return on Assets (ROA)
Reported ROA	4.56%	4.45%	6.32%	1.75%	0.99%	8.74%
Adjusted ROA	4.97%	4.82%	6.90%	2.45%	1.14%	10.90%

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

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	FedEx Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	FedEx Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	FedEx Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	FedEx Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	FedEx Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

FedEx Corp., Financial Ratios: Reported vs. Adjusted

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	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Profitability Ratio
Net profit margin¹	4.41%	4.09%	6.23%	1.86%	0.77%	6.99%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income	4,008)	3,826)	5,231)	1,644)	540)	4,946)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Profitability Ratio
Adjusted net profit margin²	4.45%	4.09%	6.23%	2.38%	0.77%	7.56%

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

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,972 ÷ 90,155 = 4.41%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 4,008 ÷ 90,155 = 4.45%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	FedEx Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Total assets	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Activity Ratio
Total asset turnover¹	1.03	1.09	1.01	0.94	1.28	1.25
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	90,155)	93,512)	83,959)	69,217)	69,693)	65,450)
Adjusted total assets	80,708)	79,450)	75,785)	67,165)	47,519)	45,357)
Activity Ratio
Adjusted total asset turnover²	1.12	1.18	1.11	1.03	1.47	1.44

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

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 90,155 ÷ 87,143 = 1.03

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 90,155 ÷ 80,708 = 1.12

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	FedEx Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Common stockholders’ investment	26,088)	24,939)	24,168)	18,295)	17,757)	19,416)
Solvency Ratio
Financial leverage¹	3.34	3.45	3.43	4.02	3.06	2.70
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	80,708)	79,450)	75,785)	67,165)	47,519)	45,357)
Adjusted common stockholders’ investment	19,653)	18,395)	17,176)	11,923)	10,873)	12,443)
Solvency Ratio
Adjusted financial leverage²	4.11	4.32	4.41	5.63	4.37	3.65

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

2023 Calculations

¹ Financial leverage = Total assets ÷ Common stockholders’ investment
= 87,143 ÷ 26,088 = 3.34

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted common stockholders’ investment
= 80,708 ÷ 19,653 = 4.11

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	FedEx Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Common stockholders’ investment	26,088)	24,939)	24,168)	18,295)	17,757)	19,416)
Profitability Ratio
ROE¹	15.23%	15.34%	21.64%	7.03%	3.04%	23.55%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income	4,008)	3,826)	5,231)	1,644)	540)	4,946)
Adjusted common stockholders’ investment	19,653)	18,395)	17,176)	11,923)	10,873)	12,443)
Profitability Ratio
Adjusted ROE²	20.39%	20.80%	30.46%	13.79%	4.97%	39.75%

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

2023 Calculations

¹ ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 3,972 ÷ 26,088 = 15.23%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted common stockholders’ investment
= 100 × 4,008 ÷ 19,653 = 20.39%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	FedEx Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Total assets	87,143)	85,994)	82,777)	73,537)	54,403)	52,330)
Profitability Ratio
ROA¹	4.56%	4.45%	6.32%	1.75%	0.99%	8.74%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income	4,008)	3,826)	5,231)	1,644)	540)	4,946)
Adjusted total assets	80,708)	79,450)	75,785)	67,165)	47,519)	45,357)
Profitability Ratio
Adjusted ROA²	4.97%	4.82%	6.90%	2.45%	1.14%	10.90%

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

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 3,972 ÷ 87,143 = 4.56%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,008 ÷ 80,708 = 4.97%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	FedEx Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

FedEx Corp. (NYSE:FDX)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

FedEx Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

FedEx Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)