Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

FedEx Corp. (NYSE:FDX)

Analysis of Operating Leases

Advanced level


Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

FedEx Corp., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Total undiscounted future operating lease payments 18,115  18,102  17,874  17,813  16,385 
Discount rate1 3.50% 3.60% 3.60% 3.75% 4.44%
 
Total present value of future operating lease payments 15,238  15,142  14,974  14,789  13,115 

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).

1 Weighted-average interest rate for FedEx Corp.’s debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.50%
2020 2,497  2020 2,497  2,413 
2021 2,263  2021 2,263  2,113 
2022 2,028  2022 2,028  1,829 
2023 1,779  2023 1,779  1,550 
2024 1,486  2024 1,486  1,251 
2025 and thereafter 8,062  2025 1,486  1,209 
2026 1,486  1,168 
2027 1,486  1,128 
2028 1,486  1,090 
2029 1,486  1,053 
2030 632  433 
Total: 18,115  18,115  15,238 

Based on: 10-K (filing date: 2019-07-16).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.60%
2019 2,471  2019 2,471  2,385 
2020 2,177  2020 2,177  2,028 
2021 1,951  2021 1,951  1,755 
2022 1,762  2022 1,762  1,530 
2023 1,548  2023 1,548  1,297 
2024 and thereafter 8,193  2024 1,548  1,252 
2025 1,548  1,209 
2026 1,548  1,167 
2027 1,548  1,126 
2028 1,548  1,087 
2029 453  307 
Total: 18,102  18,102  15,142 

Based on: 10-K (filing date: 2018-07-16).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.60%
2018 2,445  2018 2,445  2,360 
2019 2,230  2019 2,230  2,078 
2020 1,931  2020 1,931  1,737 
2021 1,709  2021 1,709  1,484 
2022 1,540  2022 1,540  1,290 
2023 and thereafter 8,019  2023 1,540  1,246 
2024 1,540  1,202 
2025 1,540  1,160 
2026 1,540  1,120 
2027 1,540  1,081 
2028 319  216 
Total: 17,874  17,874  14,974 

Based on: 10-K (filing date: 2017-07-17).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 3.75%
2017 2,475  2017 2,475  2,386 
2018 2,243  2018 2,243  2,084 
2019 1,953  2019 1,953  1,749 
2020 1,668  2020 1,668  1,440 
2021 1,451  2021 1,451  1,207 
2022 and thereafter 8,023  2022 1,451  1,163 
2023 1,451  1,121 
2024 1,451  1,081 
2025 1,451  1,042 
2026 1,451  1,004 
2027 768  512 
Total: 17,813  17,813  14,789 

Based on: 10-K (filing date: 2016-07-18).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 4.44%
2016 2,128  2016 2,128  2,038 
2017 2,241  2017 2,241  2,055 
2018 1,751  2018 1,751  1,537 
2019 1,511  2019 1,511  1,270 
2020 1,265  2020 1,265  1,018 
2021 and thereafter 7,489  2021 1,265  975 
2022 1,265  933 
2023 1,265  894 
2024 1,265  856 
2025 1,265  819 
2026 1,164  722 
Total: 16,385  16,385  13,115 

Based on: 10-K (filing date: 2015-07-14).


Adjustments to Financial Statements for Operating Leases

FedEx Corp., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Adjustment to Total Assets
Total assets (as reported) 73,537  54,403  52,330  48,552  46,064  37,069 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  15,238  15,142  14,974  14,789  13,115 
Total assets (adjusted) 73,537  69,641  67,472  63,526  60,853  50,184 
Adjustment to Total Debt
Total debt (as reported) 22,003  17,581  16,585  14,931  13,867  7,268 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  15,238  15,142  14,974  14,789  13,115 
Add: Current portion of operating lease liabilities 1,923  —  —  —  —  — 
Add: Operating lease liabilities, less current portion 12,195  —  —  —  —  — 
Total debt (adjusted) 36,121  32,819  31,727  29,905  28,656  20,383 

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).

1, 2 Equal to total present value of future operating lease payments.


FedEx Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

FedEx Corp., adjusted financial ratios

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Total Asset Turnover1
Reported total asset turnover 0.94 1.28 1.25 1.24 1.09 1.28
Adjusted total asset turnover 0.94 1.00 0.97 0.95 0.83 0.95
Debt to Equity2
Reported debt to equity 1.20 0.99 0.85 0.93 1.01 0.48
Adjusted debt to equity 1.97 1.85 1.63 1.86 2.08 1.36
Return on Assets3 (ROA)
Reported ROA 1.75% 0.99% 8.74% 6.17% 3.95% 2.83%
Adjusted ROA 1.75% 0.78% 6.78% 4.72% 2.99% 2.09%

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 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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. FedEx Corp.’s adjusted debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as 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 Total Asset Turnover

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenue 69,217  69,693  65,450  60,319  50,365  47,453 
Total assets 73,537  54,403  52,330  48,552  46,064  37,069 
Activity Ratio
Total asset turnover1 0.94 1.28 1.25 1.24 1.09 1.28
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue 69,217  69,693  65,450  60,319  50,365  47,453 
Adjusted total assets 73,537  69,641  67,472  63,526  60,853  50,184 
Activity Ratio
Adjusted total asset turnover2 0.94 1.00 0.97 0.95 0.83 0.95

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 ÷ 73,537 = 0.94

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 Debt to Equity

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt 22,003  17,581  16,585  14,931  13,867  7,268 
Common stockholders’ investment 18,295  17,757  19,416  16,073  13,784  14,993 
Solvency Ratio
Debt to equity1 1.20 0.99 0.85 0.93 1.01 0.48
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 36,121  32,819  31,727  29,905  28,656  20,383 
Common stockholders’ investment 18,295  17,757  19,416  16,073  13,784  14,993 
Solvency Ratio
Adjusted debt to equity2 1.97 1.85 1.63 1.86 2.08 1.36

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 Debt to equity = Total debt ÷ Common stockholders’ investment
= 22,003 ÷ 18,295 = 1.20

2 Adjusted debt to equity = Adjusted total debt ÷ Common stockholders’ investment
= 36,121 ÷ 18,295 = 1.97

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. FedEx Corp.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income 1,286  540  4,572  2,997  1,820  1,050 
Total assets 73,537  54,403  52,330  48,552  46,064  37,069 
Profitability Ratio
ROA1 1.75% 0.99% 8.74% 6.17% 3.95% 2.83%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income 1,286  540  4,572  2,997  1,820  1,050 
Adjusted total assets 73,537  69,641  67,472  63,526  60,853  50,184 
Profitability Ratio
Adjusted ROA2 1.75% 0.78% 6.78% 4.72% 2.99% 2.09%

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 × Net income ÷ Adjusted total assets
= 100 × 1,286 ÷ 73,537 = 1.75%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as 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.