FedEx Corp. (NYSE:FDX)

Asset Turnover

The reported total asset turnover ratio showed an improvement from 0.94 in 2020 to a peak of 1.09 in 2022, followed by a gradual decline to 1.00 in 2025. The adjusted total asset turnover followed a similar pattern, increasing from 0.96 in 2020 to 1.10 in 2022, then decreasing slightly to 1.01 in 2025. This suggests that asset utilization efficiency improved initially but experienced a slight reduction in the later periods.

Current Ratio

The reported current ratio decreased steadily from 1.58 in 2020 to 1.19 in 2025, indicating a gradual decline in short-term liquidity. The adjusted current ratio exhibited a similar trend, declining from 1.60 in 2020 to 1.22 in 2025. Although liquidity remains above 1, the downward trend warrants attention to potential liquidity risks in the future.

Debt to Equity

The reported debt to equity ratio decreased consistently from 1.20 in 2020 to 0.73 in 2025, reflecting a reduction in reliance on equity financing or a relative increase in equity. The adjusted ratio also declined from 1.78 to 1.18 over the same period, indicating an overall deleveraging trend. This suggests the company has been managing its capital structure to reduce financial risk.

Debt to Capital

The reported debt to capital ratio exhibited a steady decline from 0.55 in 2020 to 0.42 in 2025, consistent with the deleveraging observed in the debt to equity ratio. The adjusted debt to capital ratio decreased moderately from 0.64 to 0.54, supporting the conclusion of an improving capital structure with reduced debt levels relative to total capital.

Financial Leverage

Reported financial leverage decreased gradually from 4.02 in 2020 to 3.12 in 2025, reflecting a reduction in the company's use of debt relative to equity. Adjusted financial leverage follows this trend, dropping from 3.57 to 2.75, which suggests a moderate decrease in financial risk and a stronger equity base over time.

Net Profit Margin

Reported net profit margin increased significantly from 1.86% in 2020 to 6.23% in 2021, then declined to a range between 4.09% and 4.94% from 2022 to 2025. Adjusted margins show a similar pattern with a peak at 7.9% in 2021, followed by a decrease and stabilization around 4.6% to 4.8% in subsequent years. This indicates a temporary profitability spike followed by normalization at a still healthy margin level.

Return on Equity (ROE)

Reported ROE rose sharply from 7.03% in 2020 to 21.64% in 2021, then declined to about 14.58% by 2025. Adjusted ROE peaked even higher at 24.53% in 2021 and then decreased to 12.8% by 2025. Despite the decline from peak levels, the ROE remains substantially above the initial value, indicating continued effective use of equity capital.

Return on Assets (ROA)

Reported ROA followed a similar trajectory, increasing from 1.75% in 2020 to 6.32% in 2021, then declining and stabilizing between 4.45% and 4.98% through 2025. The adjusted ROA peaked at 8.11% in 2021 before decreasing to approximately 4.65% in 2025. This pattern suggests improved asset efficiency and profitability that normalized after an exceptional year.

Revenue Trends

Revenue showed a steady increase from 69,217 million USD in 2020 to a peak of 93,512 million USD in 2022. Following this peak, a decline is observed in 2023, dropping to 90,155 million USD, with a further moderate decrease stabilizing around 87,693 million USD in 2024 and 87,926 million USD in 2025. This indicates a growth phase up to 2022, followed by a contraction phase in subsequent years.

Total Assets

Total assets consistently increased from 73,537 million USD in 2020 to 87,627 million USD in 2025. The growth is gradual and steady, reflecting ongoing asset accumulation or investment by the company over this period, with no indication of asset depletion or downsizing.

Total Asset Turnover Ratios

The reported total asset turnover ratio improved from 0.94 in 2020 to a peak of 1.09 in 2022, indicating enhanced efficiency in generating revenue from assets during this period. However, this ratio declined to 1.03 in 2023 and further decreased marginally to 1.01 by 2025, suggesting a reduction in asset utilization efficiency after 2022.

Adjusted Total Assets and Turnover

Adjusted total assets followed a similar upward trend as total assets, rising steadily from 72,365 million USD in 2020 to 86,949 million USD in 2025. Correspondingly, the adjusted total asset turnover ratio mirrors the reported ratio, peaking at 1.10 in 2022 and declining to 1.01 by 2025. This parallel pattern suggests consistency between reported and adjusted figures, reinforcing the interpretation of asset efficiency trends.

Overall Insights

The data reflects a growth phase in revenue and asset efficiency up until 2022, followed by a period of stagnation or mild decline in both revenue and efficiency metrics through 2025. Asset base growth remained steady throughout, underscoring continuous investment or asset maintenance despite the downturn in revenue and turnover ratios. The decline in turnover ratios after 2022 points to potential challenges in leveraging assets to generate revenue at previous levels.

Current Assets

Current assets increased significantly from 16,383 million US dollars in May 2020 to a peak of 20,580 million in May 2021. After this peak, there was a gradual decline over the subsequent years, reaching 18,386 million by May 2025. This indicates an initial strong accumulation of assets followed by a slight reduction and stabilization in later years.

Current Liabilities

Current liabilities followed an upward trend overall, starting at 10,344 million US dollars in May 2020 and rising steadily to 15,411 million by May 2025. The increase was relatively consistent, although a minor dip occurred in May 2024 compared to May 2023. This growth in liabilities suggests increasing short-term obligations over the period.

Reported Current Ratio

The reported current ratio demonstrated a clear declining trend, falling from 1.58 in May 2020 to 1.19 by May 2025. This continuous decrease reflects a diminishing cushion of current assets relative to current liabilities, indicating a reduction in short-term liquidity and potential tightening of working capital.

Adjusted Current Assets

Adjusted current assets mirrored the pattern of reported current assets, increasing from 16,558 million US dollars in May 2020 to a high of 20,938 million in May 2021, then gradually declining to 18,824 million in May 2025. The adjustments cause a slightly higher valuation of current assets throughout the period, but the overall trend remains consistent.

Adjusted Current Ratio

The adjusted current ratio also experienced a downward trend, albeit starting from a slightly higher base than the reported current ratio. It decreased from 1.60 in May 2020 to 1.22 in May 2025. Despite remaining above 1.0, the diminution highlights a progressively reduced liquidity buffer when assessed with adjusted figures.

The financial data reveals several notable trends in the company’s capital structure over the analyzed period.

Total Debt

The total debt figures demonstrate a gradual decline from US$22,003 million in 2020 to US$20,579 million in 2025, exhibiting minor fluctuations but an overall downward trend in nominal debt levels.

Common Stockholders’ Investment

Common stockholders’ investment shows a continuous increase, rising from US$18,295 million in 2020 to US$28,074 million in 2025. This indicates steady growth in equity base, potentially reflecting retained earnings accumulation or new equity issuances.

Reported Debt to Equity Ratio

The reported debt to equity ratio declines significantly from 1.20 in 2020 to 0.73 in 2025, signifying a strengthening equity position relative to debt and a more conservative capital structure.

Adjusted Total Debt

The adjusted total debt, which likely includes off-balance sheet liabilities or other adjustments, shows an increase from US$36,121 million in 2020 to a peak of US$38,332 million in 2023, followed by a slight decrease to US$37,416 million in 2025. This pattern suggests rising adjusted liabilities up to 2023 with a modest reduction thereafter.

Adjusted Common Stockholders’ Investment

Adjusted equity also rises consistently from US$20,285 million in 2020 to US$31,601 million in 2025, maintaining a positive growth trend similar to the reported equity figures.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreases steadily from 1.78 in 2020 to 1.18 in 2025, indicating an improving leverage profile when considering adjusted financial measures. The decline suggests enhanced financial stability and lower dependency on debt financing over time.

Overall, the company demonstrates a strengthening financial position with increasing equity and a decreasing debt-to-equity ratio under both reported and adjusted figures. While adjusted debt shows a rise until 2023, it tapers off afterward, supporting the trend towards improved leverage management.

The analysis of the financial data reveals several trends related to the company's debt and capital structure over the periods from May 31, 2020, to May 31, 2025.

Total Debt

The total debt shows a slight overall decline followed by a relative stabilization. Starting at US$22,003 million in 2020, it decreased to US$20,264 million by 2022 and then fluctuated slightly, reaching US$20,579 million in 2025. This trend indicates a modest reduction and subsequent stable management of the company's debt obligations.

Total Capital

Total capital demonstrates a steady increase throughout the period. It rose from US$40,298 million in 2020 to US$48,653 million in 2025. This consistent growth suggests strengthening capitalization and potentially increased equity financing or retained earnings.

Reported Debt to Capital Ratio

The reported debt to capital ratio exhibits a clear downward trend, decreasing from 0.55 in 2020 to 0.42 by 2025. This decline indicates an improving capital structure with reduced reliance on debt relative to total capital, reflecting enhanced financial stability.

Adjusted Total Debt

Adjusted total debt figures are consistently higher than reported total debt, beginning at US$36,121 million in 2020 and increasing to a peak of US$38,332 million in 2023, followed by a gradual decline to US$37,416 million in 2025. The adjustment likely accounts for additional debt-like obligations not captured in reported figures, showing more comprehensive debt measurement and a similar stabilization pattern post-peak.

Adjusted Total Capital

Adjusted total capital shows continuous growth from US$56,406 million in 2020 to US$69,017 million in 2025. This reflects expanding overall capital resources after adjustment, consistent with trends in reported total capital but on a larger base.

Adjusted Debt to Capital Ratio

This ratio decreases steadily from 0.64 in 2020 to 0.54 in 2025, indicating improvement in the company's capital structure even after accounting for adjusted debt figures. The persistent declining trend reaffirms enhanced leverage management and potential strengthening of financial health.

Overall, the data demonstrates a consistent improvement in the company’s leverage ratios, accompanied by growth in capital bases. The modest fluctuations in total and adjusted debt suggest controlled debt levels, while steady capital increases contribute to improved debt-to-capital dynamics. These developments indicate prudent financial management aimed at enhancing solvency and reducing financial risk over the analyzed periods.

Total Assets

The total assets show a steady upward trend from 73,537 million USD in May 2020 to 87,627 million USD in May 2025. The increase is consistent although the rate of growth appears to moderate slightly after 2022, indicating stable asset accumulation over the period.

Common Stockholders’ Investment

Common stockholders’ equity also exhibits a clear growth trajectory, rising from 18,295 million USD in May 2020 to 28,074 million USD in May 2025. This growth reflects strengthening shareholder equity, with particularly notable increases between 2020 and 2021.

Reported Financial Leverage

The reported financial leverage ratio declines from 4.02 in 2020 to 3.12 in 2025. This decreasing trend suggests a reduction in the company's reliance on debt relative to equity, indicating an improving capital structure and potentially lower financial risk.

Adjusted Total Assets

Adjusted total assets follow a pattern similar to total assets, growing from 72,365 million USD in 2020 to 86,949 million USD in 2025. The trend remains consistently upward, confirming stable asset base growth when adjustments are considered.

Adjusted Common Stockholders’ Investment

Adjusted equity increases from 20,285 million USD in 2020 to 31,601 million USD in 2025. The upward movement aligns with the trend in reported equity, demonstrating enhanced shareholder value on an adjusted basis.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreases steadily from 3.57 in 2020 to 2.75 in 2025. This improvement in adjusted leverage indicates that after considering specific adjustments, the company is strengthening its equity base relative to adjusted assets, further signifying lower financial leverage risk.

Revenue Trends

The revenue exhibited a consistent upward trend from May 31, 2020, reaching a peak in May 31, 2022, at 93,512 million US dollars. Following this peak, there was a decline over the subsequent two years, with revenue decreasing to 87,693 million by May 31, 2024, and stabilizing slightly around 87,926 million in May 31, 2025.

Net Income Trends

Net income showed significant volatility. Beginning at 1,286 million US dollars in May 31, 2020, it surged sharply to 5,231 million by May 31, 2021. Afterwards, net income declined over the next years, dropping to 3,826 million in May 31, 2022, then modestly rising to 4,331 million in May 31, 2024 before declining again to 4,092 million in May 31, 2025.

Reported Net Profit Margin Analysis

The reported net profit margin improved markedly from 1.86% in 2020 to 6.23% in 2021, reflecting better profitability during that year. This margin decreased substantially in 2022 to 4.09% but gradually improved through 2024, reaching 4.94%, before slightly declining to 4.65% in 2025. The initial jump followed by stabilization suggests variable operational efficiency or cost structure influences.

Adjusted Net Income Trends

Adjusted net income mirrored the net income trend but showed a stronger peak in 2021 at 6,631 million US dollars. Thereafter, it decreased significantly to 3,759 million in 2022, increased again to 4,326 million in 2023, and then saw slight decreases to 4,101 and 4,044 million in 2024 and 2025 respectively. These fluctuations indicate underlying adjustments impacting profitability assessments.

Adjusted Net Profit Margin Analysis

The adjusted net profit margin experienced a similar pattern to the reported margin but displayed generally higher values, peaking at 7.9% in 2021. It subsequently dropped to 4.02% in 2022 and then steadily rose to 4.8% in 2023 before tapering to 4.68% and 4.6% in the two following years. This suggests that adjusted earnings presented a slightly more positive profitability outlook than reported figures.

Overall Insights

The data indicate a strong financial performance in the year ending 2021, with marked improvements in profitability and income relative to previous periods. Following this peak, both revenue and profits underwent a correction with declines particularly notable in 2022. Although there was some recovery in the adjusted and reported net income margins in the subsequent years, the levels did not return to the 2021 peak, suggesting more moderate profitability going forward. The divergence between reported and adjusted metrics points to certain one-time or non-operational factors affecting earnings during the period analyzed.

The financial data reveals notable fluctuations in key performance indicators over the analyzed periods.

Net Income

Net income showed a significant surge from 1,286 million USD in 2020 to a peak of 5,231 million USD in 2021. Following this peak, the metric declined to 3,826 million USD in 2022 but gradually recovered to 4,331 million USD by 2024 before slightly decreasing to 4,092 million USD in 2025. This indicates volatility with an overall upward trend after the initial drop post-2021.

Common Stockholders’ Investment

Investment by common stockholders consistently increased throughout the periods, rising from 18,295 million USD in 2020 to 28,074 million USD in 2025. The steady increase demonstrates sustained capital infusion or retained earnings contributing to growing equity.

Reported Return on Equity (ROE)

The reported ROE reflected a strong peak at 21.64% in 2021, followed by a notable decline to 15.34% in 2022. Subsequent years showed relative stability around the 15% mark, ending slightly lower at 14.58% in 2025. This pattern suggests a normalization after an exceptional return in 2021.

Adjusted Net Income

Adjusted net income trends parallel the reported net income but show greater volatility. It peaked even higher in 2021 at 6,631 million USD, then sharply decreased to 3,759 million USD in 2022, before fluctuating between approximately 4,000 million USD and 4,326 million USD through 2025. The sharp drop and variability highlight adjustments that significantly impact profit reporting.

Adjusted Common Stockholders’ Investment

Adjusted stockholders’ investment demonstrated a steady upward trajectory from 20,285 million USD in 2020 to 31,601 million USD in 2025. The consistent growth mirrors the trend in unadjusted equity, supporting the view of increasing shareholder equity base on an adjusted basis.

Adjusted Return on Equity (ROE)

Adjusted ROE showed elevated performance in 2021 at 24.53%, subsequently declining to 13.35% in 2022. It remained relatively steady, slightly decreasing in the following years, settling at 12.8% in 2025. The downward trend after 2021 indicates adjustment-related impacts on profitability ratios.

Overall, the data indicates a strong performance in 2021 across income and return metrics, followed by a correction and stabilization period. The continued growth in stockholders’ investment suggests a solid financial foundation, while returns on equity have moderated to sustainable levels after the peak year.

Net Income

The net income demonstrated significant variability over the analyzed period. Starting at 1,286 million USD in 2020, it peaked in 2021 at 5,231 million USD. Subsequently, it decreased to 3,826 million USD in 2022 and exhibited moderate increases in 2023 and 2024, reaching 4,331 million USD, before a slight decline to 4,092 million USD in 2025. Overall, the net income fluctuated but generally remained well above the initial 2020 level after 2021.

Total Assets

Total assets showed a generally increasing trend, rising from 73,537 million USD in 2020 to 87,627 million USD in 2025. The growth was steady but appeared to plateau slightly around 2023 to 2025, with assets remaining close to 87,000 million USD during those years.

Reported Return on Assets (ROA)

The reported ROA followed the trend of net income, increasing sharply from 1.75% in 2020 to 6.32% in 2021. It then decreased to 4.45% in 2022 and stabilized somewhat in subsequent years, fluctuating between 4.56% and 4.98%. The reported ROA remained significantly higher in the later years compared to 2020, signaling improved asset profitability overall despite some volatility.

Adjusted Net Income

The adjusted net income presented a pattern similar to the reported net income but showed a higher peak in 2021 at 6,631 million USD compared to 5,231 million USD reported. A decrease followed in 2022 to 3,759 million USD, then a recovery to 4,326 million USD in 2023. Adjusted net income slightly declined in the last two years, finishing at 4,044 million USD in 2025, maintaining a higher level than 2020 but slightly lower than the peak year.

Adjusted Total Assets

Adjusted total assets increased steadily from 72,365 million USD in 2020 to 86,949 million USD in 2025, mirroring the trend in total assets. The incremental growth in adjusted assets was consistent but showed signs of stabilization in the last years, similar to total assets.

Adjusted Return on Assets (ROA)

The adjusted ROA saw a notable increase from 1.87% in 2020 to a peak of 8.11% in 2021, indicating a strong improvement in asset utilization efficiency for that year. In 2022, it dropped sharply to 4.42%, then rose to 5.00% in 2023. Following years showed a slight decline but maintained levels above 4.5%, indicating sustained effective use of assets relative to earlier periods.