Analysis of Goodwill and Intangible Assets
- 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)
Goodwill and Intangible Asset Disclosure
FedEx Corp., balance sheet: goodwill and intangible assets
US$ in millions
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
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.’s goodwill decreased from 2018 to 2019 and from 2019 to 2020. |
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.’s other intangible assets, net book value decreased from 2018 to 2019 and from 2019 to 2020. |
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.’s goodwill and other intangible assets decreased from 2018 to 2019 and from 2019 to 2020. |
Adjustments to Financial Statements: Removal of Goodwill
FedEx Corp., adjustments to financial statements
US$ in millions
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
FedEx Corp., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Goodwill (Summary)
FedEx Corp., adjusted financial ratios
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
Financial ratio | Description | The company |
---|---|---|
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by revenue. | FedEx Corp.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | FedEx Corp.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
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.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020. |
Adjusted ROE | A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. | FedEx Corp.’s adjusted ROE deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | FedEx Corp.’s adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
FedEx Corp., Financial Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
2020 Calculations
1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,286 ÷ 69,217 = 1.86%
2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 1,644 ÷ 69,217 = 2.38%
Profitability ratio | Description | The company |
---|---|---|
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by revenue. | FedEx Corp.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Adjusted Total Asset Turnover
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
2020 Calculations
1 Total asset turnover = Revenue ÷ Total assets
= 69,217 ÷ 73,537 = 0.94
2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 69,217 ÷ 67,165 = 1.03
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | FedEx Corp.’s adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Adjusted Financial Leverage
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
2020 Calculations
1 Financial leverage = Total assets ÷ Common stockholders’ investment
= 73,537 ÷ 18,295 = 4.02
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted common stockholders’ investment
= 67,165 ÷ 11,923 = 5.63
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.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020. |
Adjusted Return on Equity (ROE)
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
2020 Calculations
1 ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 1,286 ÷ 18,295 = 7.03%
2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted common stockholders’ investment
= 100 × 1,644 ÷ 11,923 = 13.79%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. | FedEx Corp.’s adjusted ROE deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Adjusted Return on Assets (ROA)
Based on: 10-K (filing date: 2020-07-20), 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14).
2020 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,286 ÷ 73,537 = 1.75%
2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,644 ÷ 67,165 = 2.45%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | FedEx Corp.’s adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |