FedEx Corp. (NYSE:FDX)

The financial data reveals several trends in the asset position over the six-year period.

Current Assets

Current assets increased steadily from 2019 to 2021, rising from approximately 13.1 billion US dollars to about 20.6 billion US dollars. This indicates growth in assets that could be easily converted to cash within a year. However, from 2022 onwards, a declining trend is observable, with current assets decreasing to around 18.2 billion US dollars in 2024. This reduction may suggest a change in liquidity management, asset composition, or operational needs.

Adjusted Current Assets

Similarly, adjusted current assets followed the same pattern as current assets. Beginning at approximately 13.2 billion US dollars in 2019, the figure rose steadily through 2021, reaching about 20.9 billion US dollars. From 2022 onwards, a decline is seen, with adjusted current assets reducing to around 18.6 billion US dollars in 2024. The adjusted measure consistently remained slightly higher than unadjusted current assets, indicating certain asset adjustments or reclassifications maintained throughout the period.

In summary, both current and adjusted current assets experienced significant growth until 2021, followed by a gradual decline through 2024. This shift could be reflective of broader operational or market changes impacting asset liquidity or composition.

The analysis of the financial data over the six-year period reveals notable trends in the totals of assets and adjusted total assets.

Total Assets

The total assets showed a significant increase from US$54,403 million in May 2019 to a peak of US$87,143 million in May 2023. This represents a consistent upward trend across the years, with the largest annual increase occurring between May 2019 and May 2020. From May 2023 to May 2024, the total assets slightly declined to US$87,007 million, suggesting a stabilization or minor contraction after several years of growth.

Adjusted Total Assets

Adjusted total assets started higher than the reported total assets, at US$68,422 million in May 2019, indicating that adjustments increased the asset base significantly. However, unlike total assets, adjusted total assets experienced a decline from May 2019 to May 2020, dropping to US$72,365 million. Subsequently, this item showed a steady increase each year until reaching a peak of US$86,452 million in May 2023. Similar to total assets, adjusted total assets then decreased slightly to US$86,130 million in May 2024. The adjustment factors caused the figures to be consistently higher than total assets by varying margins, with a narrowing gap towards the later years.

Overall, both total assets and adjusted total assets display growth over the analyzed period, reflecting expansion or increased capitalization. The slight decline in the final year for both measures could indicate a shift in asset management strategy, divestitures, or other operational factors affecting asset size. The disparity between adjusted and total assets suggests adjustments played a significant role in asset reporting, though this impact has lessened somewhat in recent years.

The analysis of the financial liabilities over the period from May 31, 2019, to May 31, 2024, reveals several notable trends.

Total Liabilities

The total liabilities demonstrated a significant increase between 2019 and 2020, rising from approximately 36.6 billion US dollars to about 55.2 billion US dollars. Following this sharp rise, the liabilities continued to increase, but at a more moderate pace, reaching roughly 61.1 billion US dollars by 2022. The total liabilities then remained relatively stable through 2023 and slightly decreased to around 59.4 billion US dollars by 2024.

Adjusted Total Liabilities

Adjusted total liabilities started at a higher base compared to total liabilities, approximately 49.1 billion US dollars in 2019. They experienced an initial dip in 2020, reducing to about 52.1 billion US dollars, followed by a steady increase to 56.9 billion US dollars in 2022. After 2022, adjusted liabilities showed a marginal decline, sliding to about 54.9 billion US dollars in 2024. The trend demonstrates a less volatile pattern compared to total liabilities, with a steadier increase and gradual decrease towards the end.

Overall, the data suggest that the company experienced a substantial growth in liabilities during the early part of the observed period, followed by stabilization and slight reductions in recent years. The difference between total and adjusted liabilities implies adjustments that likely account for specific financial instruments or accounting treatments, with adjusted liabilities being consistently higher but following similar trends over time.

Common Stockholders’ Investment

The common stockholders’ investment demonstrates a consistent upward trend over the analyzed period from May 31, 2019, to May 31, 2024. Starting at US$17,757 million in 2019, it increased steadily each year, reaching US$27,582 million in 2024. The investment grew approximately 55% over these six years, indicating ongoing capital enhancement and possibly reflecting retained earnings or new equity injections.

Adjusted Common Stockholders’ Investment

This metric follows a similar increasing trajectory to the common stockholders’ investment but at slightly higher levels. Beginning at US$19,359 million in 2019, the adjusted figure rose annually to reach US$31,187 million in 2024. The adjustment appears to account for factors increasing the base investment value by around 10-15%. The consistent annual growth suggests strong underlying fundamentals and possibly adjustments for unrealized gains, reserves, or other equity-related components.

Overall Analysis

Both the reported and adjusted common stockholders’ investments show sustained growth through the five-year span, reflecting strengthening equity positions. The gap between the adjusted and unadjusted figures widens moderately over time, hinting at increasing adjustments or revaluations being factored into the equity base. No periods of decline or volatility are observed, implying stable financial management and an improving equity structure.

The financial data indicates several noteworthy trends in the capital structure and debt levels over the six-year period.

Total Reported Debt

The total reported debt shows fluctuation with a peak in 2020 at $22,003 million, followed by a general decline through subsequent years to $20,203 million in 2024. This suggests an initial increase in leverage, possibly due to strategic financing or operational needs, and then a stabilization or slight reduction in debt obligations.

Common Stockholders’ Investment

There is a consistent upward trend in common stockholders' investment, growing from $17,757 million in 2019 to $27,582 million in 2024. This steady increase reflects a strengthening equity base, which could be attributed to retained earnings, issuance of stock, or other equity-related transactions.

Total Reported Capital

Total reported capital, the sum of debt and equity, has similarly increased from $35,338 million in 2019 to $47,785 million in 2024. The growth in reported capital is primarily driven by the rise in equity, whilst debt levels remain relatively stable.

Adjusted Total Debt

Adjusted total debt shows a consistent increase over the period from $32,819 million in 2019 to $37,719 million in 2024, with minor fluctuations. This adjusted measure is higher than reported debt throughout, indicating the inclusion of certain obligations beyond the reported debt. The growth trend suggests an increasing total debt burden under adjusted calculations despite the reported debt's relative stability.

Adjusted Common Stockholders’ Investment

Adjusted equity also exhibits a strong upward trajectory, rising from $19,359 million to $31,187 million between 2019 and 2024. The rise is somewhat more pronounced compared to reported equity, emphasizing an expanding equity base when adjustments are considered.

Adjusted Total Capital

This metric consistently grows each year, from $52,178 million in 2019 to $68,906 million in 2024. The growth confirms an overall expansion of the capital structure when factoring in adjusted debt and equity, supporting the view of a strengthening financial position over time.

In summary, the capital structure exhibits a stable or slightly declining trend in reported debt alongside a steadily increasing equity base, resulting in significant growth in total capital. Adjusted figures reveal a higher level of indebtedness than reported debt, yet the overall capital continues to expand robustly, indicating an improving capacity to support the company’s financial and operational requirements.

Net Income

The net income exhibits significant variability over the observed periods. It started at 540 million USD in 2019, then increased markedly to 1,286 million USD in 2020. A substantial peak occurred in 2021, reaching 5,231 million USD, representing the highest value within the period. Subsequently, net income declined to 3,826 million USD in 2022, followed by a slight increase to 3,972 million USD in 2023 and further to 4,331 million USD in 2024. Overall, the trend shows a sharp rise in 2021 with a moderate decrease afterward, yet maintaining values significantly above the initial years.

Adjusted Net Income

Adjusted net income also reveals considerable fluctuation across these years. It began at a relatively low 90 million USD in 2019, surged to 1,355 million USD in 2020, and experienced a peak of 6,631 million USD in 2021, surpassing the net income peak for the same year. However, unlike net income, adjusted net income dropped more sharply in 2022 to 3,759 million USD. In 2023, it rose to 4,326 million USD but then declined again to 4,101 million USD in 2024. This pattern indicates higher volatility in adjusted net income, especially with dramatic changes in 2021 and 2022, and a less stable recovery compared to net income in the final years.

Comparative Insights

Both metrics show a peak in 2021, suggesting an extraordinary event or favorable conditions impacting profitability in that year. The adjusted net income consistently reflects larger swings than net income, implying that adjustments made for non-recurring items or other factors significantly influenced the reported performance. The recovery trend from 2022 onwards is more pronounced in net income than in adjusted net income, potentially indicating ongoing adjustments or volatile elements affecting the latter. Despite fluctuations, the company maintains profitability well above the 2019 baseline in the most recent year.