FedEx Corp. (NYSE:FDX)

The financial data for property, plant, and equipment exhibits consistent growth across most asset categories over the analyzed six-year period.

Aircraft and related equipment

This category shows a steady upward trend, increasing from $22,793 million in 2019 to $30,525 million in 2024. The growth reflects persistent investment and expansion in high-value assets over time.

Package handling and ground support equipment

A strong upward trajectory is evident, with values rising from $10,409 million in 2019 to $17,880 million in 2024. The accelerated increase particularly between 2020 and 2023 suggests intensified upgrading or expansion of operational infrastructure in this area.

Information technology

The investment in information technology steadily grows as well, from $6,268 million in 2019 to $9,203 million in 2024. This gradual increase indicates ongoing commitment to technology enhancements supporting company operations.

Vehicles and trailers

Asset values in this segment increase moderately, moving from $8,339 million in 2019 to $10,568 million in 2024. The growth pattern is consistent but less pronounced compared to handling equipment, reflecting steady fleet upgrades or replacements.

Facilities and other

This category also experiences steady growth, rising from $11,702 million in 2019 to $16,215 million in 2024, suggesting investments in physical infrastructure and other miscellaneous equipment continue steadily.

Property and equipment, at cost

The aggregate property and equipment costs increase consistently year over year, from $59,511 million in 2019 to $84,391 million in 2024, demonstrating ongoing capital expenditure and asset acquisition.

Accumulated depreciation and amortization

The accumulated depreciation and amortization also rise, moving from -$29,082 million in 2019 to -$42,900 million in 2024. This pattern is expected with aging assets and corresponds with the overall growth in asset base, reflecting systematic allocation of asset costs over time.

Net property and equipment

The net book value of property and equipment increases steadily, from $30,429 million in 2019 to $41,491 million in 2024. The positive trend indicates that asset additions and capital expenditures outpace the depreciation expense, resulting in net asset growth.

Overall, the data reveals a clear and sustained increase in investment across all categories of property, plant, and equipment, supporting expansion and modernization efforts. The growth in net property and equipment despite rising depreciation highlights effective asset management and capital investment strategy.

The analysis of the annual property, plant, and equipment data reveals several noteworthy trends over the six-year period ending May 31, 2024.

Average Age Ratio (%)

The average age ratio consistently increased from 48.87% in 2019 to 50.83% in 2024, indicating a gradual aging of the property, plant, and equipment portfolio. This upward trend suggests that the assets are becoming progressively older relative to their estimated total useful life.

Estimated Total Useful Life (years)

The estimated total useful life remained stable at 18 years from 2019 through 2021. Beginning in 2022, this estimate increased to 19 years and further to 20 years by 2024. This extension implies revisions in asset longevity assumptions, possibly reflecting improved asset maintenance, upgraded technology, or changes in accounting estimates.

Estimated Age, Time Elapsed Since Purchase (years)

The estimated age of assets remained constant at 9 years from 2019 to 2022, then increased to 10 years during 2023 and remained at that level in 2024. This consistency followed by a step increase aligns with the passing of time and suggests limited asset replacement or acquisition activity that would affect the average age.

Estimated Remaining Life (years)

The estimated remaining life was steady at 9 years until 2021, after which it increased to 10 years from 2022 through 2024. The increase in remaining useful life corresponds with the rise in total useful life, indicating a reassessment of the assets' longevity leading to a longer anticipated usage period.

Overall, the data suggest that while the assets are aging, the company has revised its useful life estimates upward, which results in a stable or slightly increased remaining life estimate. These adjustments may reflect strategic asset management decisions, including maintenance improvements or technological upgrades, that extend the economic utility of the property, plant, and equipment. The slow increase in the average age ratio combined with the elongation of total useful life indicates a balanced approach between asset aging and life expectancy reassessment.

Over the six-year period from May 31, 2019, to May 31, 2024, the financial data reveals a consistent upward trend in the value of property and equipment at cost. This value increased steadily each year, rising from $59,511 million in 2019 to $84,391 million in 2024, indicating ongoing investment and asset acquisition over time.

Similarly, accumulated depreciation and amortization exhibited a continuous increase throughout the entire period. Starting at $29,082 million in 2019, this figure escalated annually to reach $42,900 million by 2024. This trend reflects systematic allocation of the cost of tangible assets over their useful lives and suggests an increasing stock of depreciable assets.

The average age ratio, expressed as a percentage, demonstrated a gradual upward movement. It started at 48.87% in 2019, remained relatively stable around the 48–49% range through 2022, and then increased more noticeably to 50.83% in 2024. This trend indicates a subtle aging of the property and equipment base, implying that the asset pool is becoming older on average relative to its useful life.

Property and equipment, at cost

Exhibited a consistent increase over the six years, with a total growth of approximately 42% from 2019 to 2024.

Accumulated depreciation and amortization

Also showed steady growth, rising by roughly 48% over the same period, which corresponds with the increase in property and equipment balances and implies sustained asset usage and aging.

Average age ratio

Followed a slow but steady upward trend, moving from under 49% to just over 50%, indicating an aging asset base and potentially fewer recent additions relative to the overall asset pool in recent years.

Overall, the data indicates a pattern of continuous asset addition combined with ongoing depreciation. The gradual increase in the average age ratio suggests that while new investments occur, the existing property and equipment are aging slightly, which may warrant closer attention to maintenance, upgrade strategies, or capital replacement planning in the near future.

Property and Equipment, at Cost

The value of property and equipment at cost has exhibited consistent growth over the examined period. Starting at $59,511 million in 2019, it increased steadily each year, reaching $84,391 million by 2024. This represents an approximate 41.7% increase over the six-year span, indicating ongoing investments and capital expenditures aimed at expanding or updating the company's physical assets.

Depreciation and Amortization Expense

The depreciation and amortization expense, excluding gains and losses on sales of property, reflects a gradual increase from $3,400 million in 2019 to $4,300 million in 2024. This upward trend parallels the rise in property and equipment cost, reflecting the aging and consumption of the company's asset base. The incremental increase suggests steady asset utilization and consistent expense recognition in line with asset acquisitions.

Estimated Total Useful Life

The estimated total useful life of property and equipment remained stable at 18 years through to 2021. However, from 2022 onwards, a gradual extension was observed, rising to 19 years, and further to 20 years by 2024. This lengthening of useful life estimates could imply a reassessment of asset durability, improved asset quality, or changes in depreciation policies, potentially resulting in lower annual depreciation expense relative to asset value.

Overall Analysis

The data reveals a clear pattern of sustained investment in property and equipment, accompanied by a moderate increase in depreciation expense consistent with asset growth. The extension of estimated useful life suggests adjustments in asset management or accounting practices, possibly reflecting enhanced asset longevity or operational efficiency. These trends collectively point to a strategic approach toward managing physical assets, balancing expansion with the efficient allocation of depreciation costs over a longer period.

The financial data reveals several clear trends relating to the property, plant, and equipment of the company over the six-year period from May 31, 2019, to May 31, 2024.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization figures steadily increased year over year, rising from 29,082 million US dollars in 2019 to 42,900 million US dollars in 2024. This upward trend reflects the continuous consumption of the company's property, plant, and equipment assets over time.

Depreciation and Amortization Expense

The annual depreciation and amortization expense also shows a consistent increase, starting at 3,400 million US dollars in 2019 and reaching 4,300 million US dollars in 2024. This trend suggests either rising asset bases requiring depreciation or adjustments in depreciation policies or methods leading to higher annual charges.

Time Elapsed Since Purchase

The time elapsed since purchase remained relatively stable around 9 to 10 years throughout the period. The slight increase to 10 years in the latter two data points indicates a growing average age of the assets, which could contribute to the increasing accumulated depreciation levels.

Overall, the data depicts a consistent pattern of asset aging and increasing depreciation charges. The rising accumulated depreciation aligns with the company's expanding asset utilization or acquisition history, while the growth in depreciation expense points to increasing asset value being depreciated or changes in expense recognition strategies.

The financial data reveals a consistent upward trend in net property and equipment for the periods analyzed. Over five years, from May 31, 2019, to May 31, 2024, the net property and equipment value increased from $30,429 million to $41,491 million, indicating a steady expansion or renewal of fixed assets.

The depreciation and amortization expense, excluding gains and losses on sales, also exhibits a rising pattern. Starting at $3,400 million in 2019, this expense gradually increased each year, reaching $4,300 million by 2024. This upward trajectory aligns with the growing asset base, reflecting higher depreciation charges consistent with the increased property and equipment.

The estimated remaining life of the property and equipment remained stable at 9 years through 2021, before incrementally rising to 10 years from 2022 onwards. This shift could suggest a change in asset composition, adoption of new depreciation policies, or improvements in maintenance strategies extending the useful life of the assets.

Net Property and Equipment

Displayed a consistent increase from approximately $30.4 billion in 2019 to $41.5 billion in 2024, reflecting ongoing investment in fixed assets.

Depreciation and Amortization Expense

Showed a steady rise from $3.4 billion in 2019 to $4.3 billion in 2024, paralleling the growth in assets under management.

Estimated Remaining Life

Held at 9 years initially but increased to 10 years starting in 2022, possibly indicating extended asset longevity or revised accounting assumptions.

Overall, the data suggests a deliberate expansion and upgrading of property, plant, and equipment, accompanied by an increasing but proportionate depreciation expense, and a modest extension in asset life expectancy. This pattern may reflect strategic capital investments and efficient asset management intended to support long-term operational capacity.