Stock Analysis on Net

FedEx Corp. (NYSE:FDX)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

FedEx Corp., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Aircraft and related equipment 29,108 27,874 26,268 24,518 22,793 20,749
Package handling and ground support equipment 16,839 14,930 13,012 11,382 10,409 9,727
Information technology 8,792 8,098 7,486 6,884 6,268 5,794
Vehicles and trailers 10,191 9,806 9,282 9,101 8,339 7,708
Facilities and other 15,694 14,567 14,029 13,139 11,702 11,143
Property and equipment, at cost 80,624 75,275 70,077 65,024 59,511 55,121
Accumulated depreciation and amortization (39,926) (37,184) (34,325) (31,416) (29,082) (26,967)
Net property and equipment 40,698 38,091 35,752 33,608 30,429 28,154

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).

Item Description The company
Property and equipment, at cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. FedEx Corp. property and equipment, at cost increased from 2021 to 2022 and from 2022 to 2023.
Net property and equipment Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. FedEx Corp. net property and equipment increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

FedEx Corp., asset age ratios

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Average age ratio 49.52% 49.40% 48.98% 48.31% 48.87% 48.92%
Estimated total useful life (years) 19 19 18 18 18 18
Estimated age, time elapsed since purchase (years) 10 9 9 9 9 9
Estimated remaining life (years) 10 10 9 9 9 9

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. FedEx Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. FedEx Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. FedEx Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life FedEx Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 39,926 37,184 34,325 31,416 29,082 26,967
Property and equipment, at cost 80,624 75,275 70,077 65,024 59,511 55,121
Asset Age Ratio
Average age1 49.52% 49.40% 48.98% 48.31% 48.87% 48.92%

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 Average age = 100 × Accumulated depreciation and amortization ÷ Property and equipment, at cost
= 100 × 39,926 ÷ 80,624 = 49.52%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. FedEx Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Selected Financial Data (US$ in millions)
Property and equipment, at cost 80,624 75,275 70,077 65,024 59,511 55,121
Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations 4,200 4,000 3,800 3,600 3,400 3,100
Asset Age Ratio (Years)
Estimated total useful life1 19 19 18 18 18 18

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 Estimated total useful life = Property and equipment, at cost ÷ Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations
= 80,624 ÷ 4,200 = 19

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. FedEx Corp. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 39,926 37,184 34,325 31,416 29,082 26,967
Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations 4,200 4,000 3,800 3,600 3,400 3,100
Asset Age Ratio (Years)
Time elapsed since purchase1 10 9 9 9 9 9

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 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations
= 39,926 ÷ 4,200 = 10

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. FedEx Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Selected Financial Data (US$ in millions)
Net property and equipment 40,698 38,091 35,752 33,608 30,429 28,154
Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations 4,200 4,000 3,800 3,600 3,400 3,100
Asset Age Ratio (Years)
Estimated remaining life1 10 10 9 9 9 9

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 Estimated remaining life = Net property and equipment ÷ Depreciation and amortization expense, excluding gains and losses on sales of property and equipment used in operations
= 40,698 ÷ 4,200 = 10

Asset age ratio Description The company
Estimated remaining life FedEx Corp. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.