Stock Analysis on Net
Stock Analysis on Net

FedEx Corp. (NYSE:FDX)

Common-Size Income Statement 

FedEx Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Salaries and employee benefits -35.31 -34.41 -34.28 -35.94 -36.16 -35.55
Purchased transportation -23.86 -24.17 -25.79 -25.81 -25.23 -23.90
Rentals and landing fees -5.21 -5.26 -5.04 -4.95 -5.36 -4.82
Depreciation and amortization -4.89 -4.63 -4.25 -4.52 -5.22 -4.81
Fuel -5.37 -6.55 -5.47 -3.43 -4.56 -5.58
Maintenance and repairs -3.75 -3.72 -3.61 -3.96 -4.18 -4.07
Goodwill and other asset impairment charges -0.18 -0.13 0.00 0.00 -0.63 0.00
Business optimization and realignment costs -0.66 -0.34 -0.30 -0.14 0.00 -0.46
Other -14.43 -15.34 -14.59 -14.27 -15.16 -14.41
Operating expenses -93.66% -94.55% -93.32% -93.02% -96.51% -93.59%
Operating income 6.34% 5.45% 6.68% 6.98% 3.49% 6.41%
Interest expense -0.85 -0.77 -0.74 -0.94 -0.97 -0.84
Interest income 0.42 0.22 0.06 0.06 0.08 0.08
Other retirement plans income (expense) 0.82 1.17 -0.78 2.36 -0.18 -4.66
Loss on debt extinguishment 0.00 0.00 0.00 -0.47 0.00 0.00
Other, net -0.08 -0.12 0.01 -0.04 -0.01 -0.04
Other income (expense) 0.32% 0.50% -1.44% 0.97% -1.08% -5.47%
Income before income taxes 6.66% 5.95% 5.24% 7.95% 2.41% 0.94%
Provision for income taxes -1.72 -1.54 -1.14 -1.72 -0.55 -0.17
Net income 4.94% 4.41% 4.09% 6.23% 1.86% 0.77%

Based on: 10-K (reporting date: 2024-05-31), 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).

Revenue and Operating Expenses
Revenue remained constant as the baseline at 100% across all periods, serving as the reference point for the percentage-based analysis. Operating expenses fluctuated in a relatively narrow range, peaking at 96.51% of revenue in 2020 and generally settling around 93-94% in other years, indicating consistent relative cost levels. The overall cost structure demonstrates moderate variability but remains stable.
Salaries and Employee Benefits
Costs for salaries and employee benefits consistently consumed approximately one-third of revenue, ranging from a low of 34.28% in 2022 to a high of 36.16% in 2020. The trend shows a slight dip in the middle years followed by a rebound nearing earlier levels, suggesting workforce cost management with some fluctuations possibly linked to operational adjustments or labor market conditions.
Purchased Transportation
Purchased transportation costs have shown a decreasing trend from a peak of 25.81% in 2021 down to 23.86% by 2024, implying enhanced efficiency or renegotiation of contracts in transportation services. This reduction contributes positively to margin management.
Rentals and Landing Fees
These expenses remained relatively stable, fluctuating modestly between 4.82% and 5.36%, with no clear upward or downward trend, indicating consistent facility usage costs without significant change in asset rental or landing fee expenses.
Depreciation and Amortization
Depreciation and amortization percentages exhibited minor oscillations around the 4.5% mark, showing a slight decrease during 2021-2022 before slightly rising again by 2024. This pattern suggests steady levels of asset investment with limited large fluctuations in fixed asset base or amortizable intangibles.
Fuel
Fuel costs displayed notable volatility, decreasing from 5.58% in 2019 to a low of 3.43% in 2021, then sharply increasing to 6.55% in 2023 before a moderate decline to 5.37% in 2024. This pattern likely reflects changing fuel prices and consumption levels, impacting operational costs significantly in certain years.
Maintenance and Repairs
Maintenance and repair expenses remained relatively stable with a slight downward trend from 4.07% to around 3.61%-3.75%, indicating consistent maintenance efforts and perhaps improved operational efficiencies or asset condition over time.
Impairment Charges and Business Optimization Costs
Goodwill and other asset impairment charges appeared sporadically, with small negative effects observed mainly in 2020, 2023, and 2024, indicating occasional write-downs of intangible or other assets. Business optimization and realignment costs were small but generally increasing in 2023 and 2024, suggesting active restructuring efforts in recent periods.
Other Operating Expenses
The 'Other' category remained relatively stable around 14-15% of revenue, reflecting miscellaneous operating costs that did not deviate significantly despite some minor fluctuations.
Operating Income
Operating income showed a recovery after a dip in 2020, rising from 3.49% of revenue that year up to a peak of 6.98% in 2021, with a slight decline thereafter but still maintaining above 5% in recent years. This indicates improved operational profitability following the challenges in 2020.
Interest Income and Expense
Interest expense as a percentage of revenue remained relatively stable, fluctuating slightly between 0.74% and 0.97%, while interest income increased moderately from 0.08% to 0.42%, reflecting a potential enhancement in investment returns or cash management.
Other Income and Expenses
Other retirement plans income/expense showed significant variation, with a large negative impact in 2019 but shifting to positive contributions in several later years, indicating fluctuations in pension or benefit-related income/expenses. The 'Other, net' and overall 'Other income (expense)' categories exhibited volatility with both positive and negative effects reported, suggesting variable non-operating items influencing profitability.
Income Before Taxes and Net Income
Income before taxes saw notable growth from a modest 0.94% in 2019 up to nearly 8% in 2021, followed by some normalization to roughly 6-7% range in subsequent years. Net income followed a similar pattern with an increase from 0.77% in 2019 to 6.23% in 2021 before stabilizing around 4-5%. The provision for income taxes generally increased in absolute terms as a percentage of revenue correlating with higher income, affecting net income but without interrupting upward profit trends.