FedEx Corp. (NYSE:FDX)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes exhibited significant volatility over the analyzed period. Starting at 2,531 million USD in 2020, it sharply increased to 7,163 million USD in 2021, representing a substantial improvement in profitability. However, this was followed by a notable decline to 5,014 million USD in 2022. Subsequently, NOPAT showed a moderate recovery in 2023, reaching 5,421 million USD, but then experienced a gradual decrease in both 2024 and 2025, ending at 4,913 million USD. Overall, the trend indicates an initial surge in profitability, succeeded by a period of decline and stabilization at a lower level.

Invested Capital

Invested capital demonstrated a steady upward trajectory throughout the period. Beginning at 57,553 million USD in 2020, it consistently increased each year to reach 70,379 million USD by 2025. This growth reflects ongoing investments or asset accumulation by the company, with the rate of increase slowing somewhat in the final years but maintaining a generally positive trend.

Return on Invested Capital (ROIC)

The return on invested capital experienced fluctuations aligned with the changes in profitability. Starting from a low base of 4.4% in 2020, ROIC more than doubled to 11.15% in 2021, paralleling the spike in NOPAT. This was followed by a decline to 7.54% in 2022 and a slight rise to 7.8% in 2023. In the last two years of the period, ROIC showed a marginal downward trend, finishing at 6.98% in 2025. Despite this decline, ROIC values from 2022 onward remain notably higher than the initial 2020 figure, indicating improved efficiency in the company’s use of its capital compared to the beginning of the timeframe.

Summary of Observations

The data reveals an initial period of strong profitability growth around 2021, which was not sustained in subsequent years. Although NOPAT decreased after its peak, it stabilized at levels higher than those seen at the start of the period. Invested capital steadily increased, suggesting expansion or increased investment in assets. Despite the volatility in NOPAT, ROIC remained elevated relative to the start of the period, pointing to improved capital efficiency, even if there has been some erosion in returns in recent years. The overall financial profile indicates a company that experienced strong gains in profitability and capital efficiency followed by a period of stabilization with moderate declines, set against a background of continuous capital investment.

Operating Profit Margin (OPM)

The operating profit margin exhibits a marked increase from 4.03% in 2020 to a peak of 9.6% in 2021, indicating a significant improvement in operational efficiency or pricing power during that period. Following this peak, the margin declined to 6.41% in 2022 but showed a recovery trend by reaching 7.8% in 2024 before a slight decline to 7.44% in 2025. Overall, despite fluctuations, the OPM remains substantially higher in recent years compared to 2020.

Turnover of Capital (TO)

The turnover of capital gradually increased from 1.2 in 2020 to 1.41 in 2022, reflecting improved asset utilization and revenue generation relative to capital employed. However, from 2022 onwards, there is a gradual decline stabilizing at 1.25 in the latest two years. This suggests that while initial capital efficiency gains were realized, recent periods indicate a slight reduction in the turnover rate.

Effective Cash Tax Rate (1 – CTR)

The 1 minus the effective cash tax rate declined steadily over the analyzed period, falling from 90.71% in 2020 to 75.13% in 2025. This indicates an increase in the effective cash taxes paid relative to earnings, suggesting possible changes in tax planning, statutory rates, or taxable income profiles that have increased the company's overall tax burden in recent years.

Return on Invested Capital (ROIC)

ROIC rose significantly from 4.4% in 2020 to a peak of 11.15% in 2021, reflecting substantial improvements in the company's ability to generate returns on the funds invested in the business. However, this was followed by a downward trend, with ROIC decreasing to 7.54% in 2022 and continuing to decline slightly to 6.98% by 2025. Despite this decline, ROIC remains above the initial 2020 level, indicating sustained but diminished value creation capability.

The financial data reveals distinct trends in key performance indicators over the six-year period provided.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes exhibited significant volatility throughout the timeline. Initially, the value was relatively modest, then surged sharply in the second year, reaching a peak. Subsequently, there was a noticeable decline in the third year, followed by a gradual increase in the fourth and fifth years. By the final year, a slight reduction occurred compared to the prior year, indicating some volatility but maintaining a relatively elevated level compared to the starting point.

Revenue

Revenue showed an overall upward trajectory in the first three years, with a substantial increase reaching the highest value in the third year. However, after this peak, revenue trended downward for the next two years, showing a decline from the peak year and stabilizing toward the final year. The decline suggests possible challenges in sustaining growth or market conditions impacting revenue generation.

Operating Profit Margin (OPM)

The operating profit margin improved significantly from the first to the second year, indicating enhanced operational efficiency or profitability. Following the peak margin in year two, a decline was observed in the third year, though the margin remained higher than the initial year. In the subsequent years, a general upward trend resumed, reflecting improved profitability, with minor fluctuations but maintaining a margin above the initial period's baseline.

Overall, the company displayed a period of strong financial performance marked by elevated profit margins and net operating profits after an initial baseline year. Despite some fluctuations in revenue and NOPBT, the operating profit margin suggests a focus on maintaining operational profitability. The data indicates resilience and an ability to sustain relatively high profitability levels despite revenue pressures.

Revenue Trends

Over the observed periods, revenue exhibited an overall upward trend from 69,217 million USD in 2020 to a peak of 93,512 million USD in 2022. Following this peak, revenue experienced a decline in 2023 and 2024, dropping to 87,693 million USD, before showing a slight recovery to 87,926 million USD in 2025.

Invested Capital Movement

The invested capital steadily increased each year, rising from 57,553 million USD in 2020 to 70,379 million USD in 2025. The growth, however, showed a decelerating pattern, with incremental increases becoming smaller over time. This suggests a gradual expansion of capital investment without significant acceleration.

Turnover of Capital (TO) Analysis

The turnover of capital ratio improved from 1.2 in 2020 to its highest point of 1.41 in 2022, indicating greater efficiency in utilizing capital to generate revenue during this period. However, this ratio declined thereafter, stabilizing at 1.25 from 2024 through 2025. This decline corresponds with the reduction in revenue after 2022, despite continuous growth in invested capital, suggesting diminished capital productivity in the latter years.

Overall Insight

The data reveals a period of robust growth and improving capital efficiency leading up to 2022, followed by a phase of declining revenue and reduced capital turnover efficiency. The consistent increase in invested capital during the downturn in revenue implies that the company maintained or increased its asset base despite decreasing revenue, which may warrant further investigation into asset utilization and strategic investments.

Cash Operating Taxes

The cash operating taxes demonstrate a consistent increase from 259 million US dollars in 2020 to a peak of 1,885 million in 2024, followed by a slight decline to 1,626 million in 2025. This upward trend indicates growing tax obligations over the years, reflecting an increase in taxable income or changes in tax regulations. The decrease in 2025 suggests either a reduction in taxable income or effective tax planning strategies.

Net Operating Profit Before Taxes (NOPBT)

NOPBT shows an initial strong growth from 2,790 million in 2020 to 8,056 million in 2021, indicating substantial operational profitability improvement. However, this is followed by a decline in 2022 to 5,997 million, then fluctuating with moderate increases and decreases, ending at 6,539 million in 2025. The data suggests volatility in operating profits post-2021, which may be linked to market conditions, cost management, or operational challenges.

Effective Cash Tax Rate (CTR)

The effective cash tax rate has generally increased over the period, starting at 9.29% in 2020 and rising to a peak of 27.57% in 2024, with a slight reduction to 24.87% in 2025. This rise implies a growing proportion of profits being paid as cash taxes, potentially due to changes in tax laws or diminishing tax shields. The high CTR in the later years highlights a heavier tax burden on operating profits.

Summary Insights

Overall, the company’s financial data reveal growing tax expenses aligned with increasing past operating profitability and tax rates. While operating profits surged notably in 2021, they have since shown variability, which coupled with rising tax rates, could impact net earnings. The slight reductions in both cash taxes and effective tax rate in 2025 may indicate strategic tax planning or operational adjustments aimed at optimizing after-tax profitability.