Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

FedEx Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Current portion of long-term debt	68)	126)	82)	146)	51)	964)
Salaries	757)	828)	751)	626)	436)	425)
Employee benefits, including variable compensation	977)	689)	834)	1,350)	319)	552)
Compensated absences	939)	958)	946)	927)	814)	764)
Accrued salaries and employee benefits	2,673)	2,475)	2,531)	2,903)	1,569)	1,741)
Accounts payable	3,189)	3,848)	4,030)	3,841)	3,269)	3,030)
Current portion of operating lease liabilities	2,463)	2,390)	2,443)	2,208)	1,923)	—)
Self-insurance accruals	1,931)	1,730)	1,646)	1,535)	1,223)	1,104)
Taxes other than income taxes	334)	305)	532)	637)	417)	304)
Other	2,697)	2,712)	3,010)	2,390)	1,892)	1,870)
Accrued expenses	4,962)	4,747)	5,188)	4,562)	3,532)	3,278)
Current liabilities	13,355)	13,586)	14,274)	13,660)	10,344)	9,013)
Long-term debt, less current portion	20,135)	20,453)	20,182)	20,733)	21,952)	16,617)
Deferred income taxes	4,482)	4,489)	4,093)	3,927)	3,162)	2,821)
Pension, postretirement healthcare, and other benefit obligations	2,010)	3,130)	4,448)	3,501)	5,019)	5,095)
Self-insurance accruals	3,701)	3,339)	2,889)	2,430)	2,104)	1,899)
Operating lease liabilities, less current portion	15,053)	15,363)	14,487)	13,375)	12,195)	—)
Deferred lease obligations	—)	—)	—)	—)	—)	531)
Other liabilities	689)	695)	682)	983)	466)	670)
Other long-term liabilities	25,935)	27,016)	26,599)	24,216)	22,946)	11,016)
Long-term liabilities	46,070)	47,469)	46,781)	44,949)	44,898)	27,633)
Total liabilities	59,425)	61,055)	61,055)	58,609)	55,242)	36,646)
Common stock, $0.10 par value	32)	32)	32)	32)	32)	32)
Additional paid-in capital	3,988)	3,769)	3,712)	3,481)	3,356)	3,231)
Retained earnings	38,649)	35,259)	32,782)	29,817)	25,216)	24,648)
Accumulated other comprehensive loss	(1,359)	(1,327)	(1,103)	(732)	(1,147)	(865)
Treasury stock, at cost	(13,728)	(11,645)	(10,484)	(8,430)	(9,162)	(9,289)
Common stockholders’ investment	27,582)	26,088)	24,939)	24,168)	18,295)	17,757)
Total liabilities and common stockholders’ investment	87,007)	87,143)	85,994)	82,777)	73,537)	54,403)

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).

Current liabilities: The current portion of long-term debt fluctuated, showing a sharp decrease in 2020 followed by moderate recovery and a downward trend towards 2024. Salaries consistently increased from 2019 to 2023, peaking at 828 million USD, before slightly declining in 2024. Employee benefits displayed high volatility with a notable peak in 2021 and an increase again in 2024 after declines. Compensated absences grew steadily until 2023, then slightly decreased in 2024. Accrued salaries and employee benefits peaked in 2021 and showed some fluctuations thereafter, trending upward in 2024. Accounts payable increased through 2022 but fell significantly in 2024.; The current portion of operating lease liabilities, absent in 2019, increased steadily from 2020 through 2024. Self-insurance accruals showed consistent growth over the entire period. Taxes other than income taxes peaked in 2021 and then declined moderately. Other accrued expenses and other current liabilities rose generally until 2022, with a slight drop in 2023 and a rebound in 2024. Total current liabilities increased significantly from 2019 to 2022, with minor declines in the last two years.
Long-term liabilities: Long-term debt, excluding the current portion, rose sharply between 2019 and 2020, then slightly declined and stabilized through 2024. Deferred income taxes trended upward steadily, with a minor decrease in 2024. Pension and related obligations decreased notably, particularly from 2021 onwards. Self-insurance accruals steadily increased over the years, reinforcing rising risk-related provisions. Operating lease liabilities, measured separately for non-current portions, displayed a continuous increase from 2020 until 2023 before a slight dip in 2024. Other long-term liabilities showed robust growth until 2023, followed by a decrease in 2024, reflecting some reduction in miscellaneous obligations. Overall, long-term liabilities grew substantially from 2019 to 2023 before a moderate decline in 2024.
Total liabilities: Total liabilities increased markedly from 2019 to 2023, with a peak in 2023 at over 61 billion USD. There was a slight reduction in 2024, yet the overall level remained significantly elevated relative to 2019, indicating increased financial obligations over the period analyzed.
Equity and stockholders’ investment: Common stock remained constant throughout the years. Additional paid-in capital increased steadily, reflecting continued capital influx or retained gains reinvested. Retained earnings showed consistent growth year-over-year, signaling profitability and earnings retention. Accumulated other comprehensive loss worsened marginally over the period, which may indicate increasing unrealized losses or negative adjustments in certain equity components.; Treasury stock costs rose substantially, suggesting aggressive share repurchase activities particularly from 2021 onwards. Consequently, common stockholders’ investment increased consistently, though at a slower pace than retained earnings, underlining the dual impact of retained earnings growth and treasury stock purchases on equity composition.
Balance sheet totals: The total of liabilities and common stockholders’ investment expanded significantly from 2019 until 2023, with a slight decline in 2024. This reflects the combined effects of rising liabilities and shareholder equity over the period.
Summary of trends and insights: The data reveals an overall expansion in both liabilities and equity, consistent with growth or increased operational scale. Current liabilities rose strongly until 2022, indicating increasing short-term obligations, though some components like accounts payable decreased notably in 2024. Long-term debt surged significantly in 2020 but stabilized thereafter, implying debt management efforts or refinancing activities. Operating lease liabilities increased steadily, reflecting likely lease commitments expansion or changes in accounting treatment.; Employee-related expenses, especially salaries, compensated absences, and accrued benefits, showed growth trends, indicating workforce expansion or higher compensation costs. Fluctuations in employee benefits and postretirement obligations suggest changes in benefit structures or actuarial adjustments.; Treasury stock repurchases intensified, reducing net equity components but possibly aiming to return value to shareholders or optimize the capital structure. The growth in retained earnings supports financial strength despite increasing liabilities.; Overall, the financial data suggests a company experiencing growth with increasing liabilities balanced by equity growth and profitability, managing debt levels carefully, and investing in workforce-related costs. Some fluctuations in tax and other expenses warrant monitoring for future cost control.

Download chart

FedEx Corp. (NYSE:FDX)

Balance Sheet: Liabilities and Stockholders’ Equity