FedEx Corp. (NYSE:FDX)

Aircraft and related equipment

The value of aircraft and related equipment shows a steady increase each year, rising from $24,518 million in 2020 to $31,584 million in 2025. This indicates ongoing investment and expansion in this category, with a consistent upward trend throughout the period.

Package handling and ground support equipment

This category also demonstrates continuous growth, increasing significantly from $11,382 million in 2020 to $18,878 million in 2025. The increase suggests a focus on enhancing package handling capabilities and supporting ground operations over the years.

Information technology

Information technology assets show a moderate but consistent upward trajectory, moving from $6,884 million in 2020 to $9,706 million in 2025. This reflects steady investment in IT infrastructure and systems to support operations and services.

Vehicles and trailers

Vehicles and trailers exhibit a gradual increase, rising from $9,101 million in 2020 to $10,949 million in 2025. The trend indicates ongoing asset replenishment or additions in this area, albeit at a slower growth rate compared to other categories.

Facilities and other

This category grows steadily from $13,139 million in 2020 to $16,505 million in 2025. The rise reflects sustained investment in facilities and miscellaneous related assets, contributing to the expansion and maintenance of physical infrastructure.

Property and equipment, at cost

Total property and equipment at cost show a continuous increase from $65,024 million in 2020 to $87,622 million in 2025. This upward trend underscores a broad capital expenditure program and overall asset growth across multiple categories.

Accumulated depreciation and amortization

Accumulated depreciation and amortization grow in absolute value from -$31,416 million in 2020 to -$45,980 million in 2025. This increase aligns with the aging of assets and consistent depreciation expense over the periods, reflecting asset consumption over time.

Net property and equipment

Net property and equipment increase steadily from $33,608 million in 2020 to $41,642 million in 2025. Though the rate of net growth is somewhat slower than the gross asset increases due to rising accumulated depreciation, the net increase indicates expansion in the company's capital asset base.

Average Age Ratio

The average age ratio demonstrates a steady increase over the six-year period. Starting at 48.31% in May 2020, it gradually rises each year, reaching 52.48% by May 2025. This indicates that the proportion of the asset base's age relative to its total expected lifespan is increasing, suggestive of aging property, plant, and equipment (PP&E) assets.

Estimated Total Useful Life

The estimated total useful life of the assets shows a slight upward adjustment over time. It remains stable at 18 years for the first two years, then increases to 19 years for two years, and further increases to 20 years for the last two years reported. This gradual increase in estimated useful life could reflect improvements in asset quality or changes in company policy regarding asset longevity.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets exhibits a consistent incremental trend. It remains steady at 9 years for three years, then increases to 10 years for two years, and reaches 11 years in the final year. This confirms that the assets are naturally aging as time progresses, aligning proportionally with the timeline of the analysis.

Estimated Remaining Life

The estimated remaining life demonstrates a small increase initially, moving from 9 years in the first two years to 10 years thereafter, where it remains stable for the last four years. Despite the aging assets, the remaining useful life does not significantly diminish, likely due to the upward revision of the total estimated useful life over the period.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization consistently increased over the observed periods, rising from 31,416 million USD in 2020 to 45,980 million USD in 2025. This upward trend indicates continual consumption or aging of property, plant, and equipment assets, reflecting ongoing usage and the systematic allocation of asset costs over their useful lives.

Property and Equipment, at Cost

The cost of property and equipment also exhibited a steady increase, growing from 65,024 million USD in 2020 to 87,622 million USD in 2025. This growth suggests progressive investments or acquisitions in fixed assets, pointing toward expansion or asset replacement activities to support operational capacity.

Average Age Ratio

The average age ratio showed a gradual increase from 48.31% in 2020 to 52.48% in 2025. This rising ratio signifies that the asset base is aging over time, with a tendency toward older equipment in the portfolio. An increasing average age ratio may warrant attention regarding maintenance costs, technological obsolescence, or the need for reinvestment strategies.

The analysis of property, plant, and equipment (PPE) over the observed periods reveals several key trends and insights related to asset growth, depreciation expense, and asset useful life. These observations highlight the company's investment in fixed assets and its approach to asset management and depreciation.

Property and equipment, at cost

There is a consistent upward trend in the cost value of property and equipment from May 31, 2020, through May 31, 2025. The asset base increased from approximately 65.0 billion USD in 2020 to about 87.6 billion USD in 2025, indicating sustained capital investment and expansion of asset holdings over the six-year period.

Depreciation and amortization expense

The annual depreciation and amortization expense steadily increased from 3.6 billion USD in 2020 to 4.3 billion USD by 2024 and remained stable at 4.3 billion USD in 2025. This incremental rise corresponds with the growth in asset base, reflecting the higher depreciable amount due to new acquisitions or capital improvements. The stabilization of depreciation expense in the last observed year may suggest a completion of significant asset additions or a shift in depreciation policies.

Estimated total useful life

The estimated useful life of the PPE assets shows a gradual increase over the period, from 18 years in 2020 and 2021 to 20 years in 2024 and 2025. This lengthening of useful life estimates suggests either improvements in the quality or durability of assets, or a reassessment of asset lifespans, which could effectively reduce annual depreciation expense per unit of cost over time.

Overall, the data reflects a robust asset growth strategy supported by increased capital expenditure, accompanied by a methodical increase in depreciation charges aligned with asset additions. The extension of useful life estimates indicates a strategic adjustment that may positively impact financial results by moderating depreciation expense growth despite ongoing capital investment.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization increased consistently over the six-year period, rising from $31,416 million in 2020 to $45,980 million projected in 2025. This steady growth reflects ongoing consumption and allocation of the cost of property, plant, and equipment over time.

Depreciation and Amortization Expense

The annual depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations, exhibited an upward trend from $3,600 million in 2020 to $4,300 million in 2024, where it then stabilized through 2025. This indicates a moderate increase in expense recognition year over year, likely corresponding with new asset additions or time-based amortization policies.

Time Elapsed Since Purchase

The average age of property and equipment remained relatively stable, increasing slightly from 9 years in 2020-2022 to 10 years in 2023-2024 and reaching 11 years in 2025. This suggests a gradual aging of the asset base, which may impact future maintenance costs and depreciation approaches.

Net Property and Equipment

The net property and equipment balance has shown a consistent upward trend from May 31, 2020, through May 31, 2025. Starting at $33,608 million in 2020, it increased each year, reaching $41,642 million by 2025. The growth appears steady, with the most significant increments occurring between 2021 and 2023, followed by a slower rate of increase from 2023 to 2025. This suggests ongoing investment and capitalization in property and equipment assets over the period analyzed.

Depreciation and Amortization Expense

The depreciation and amortization expense, excluding gains and losses on sales, has also risen steadily from $3,600 million in 2020 to $4,300 million in 2024. The expense remained stable at $4,300 million between 2024 and 2025, indicating that amortization costs have plateaued. This gradual rise corresponds with the increasing net property and equipment base, reflecting a higher asset base subject to depreciation. The stabilization in the last year may indicate either a reduction in asset acquisitions or an extension in asset life expectancy.

Estimated Remaining Life

The estimated remaining life of property and equipment assets has remained stable at 9 years for 2020 and 2021, then increased to 10 years from 2022 onward. This indicates either that the company has been investing in assets with longer useful lives or has re-evaluated its asset life assumptions to extend them. The longer estimated life would contribute to slower depreciation expense growth despite the increasing asset base, consistent with the observed stabilization in depreciation expense in the later years.

Overall Insights

The data indicate a strategic expansion or maintenance of asset infrastructure, reflected by the increasing net property and equipment value. Depreciation expense growth aligns with this trend but shows signs of stabilization, possibly influenced by the extension in estimated asset life. The increase in estimated life suggests a shift in asset composition or policy, which may improve future profitability metrics by reducing annual depreciation charges. Together, these patterns reflect a mature asset management approach with controlled depreciation impact amid asset growth.