FedEx Corp. (NYSE:FDX)

The analysis of the financial ratios over the displayed periods reveals several notable trends for the company.

Return on Assets (ROA)

ROA showed a general upward trend during the initial periods, rising from 2.3% in August 2020 to a peak of 6.32% in May 2021. Following this peak, a moderate decline is visible until early 2023, where it dipped to around 3.49%. After this decrease, ROA began a gradual recovery, stabilizing roughly between 4.5% and 5.1% over the succeeding quarters. The recent data points indicate relative consistency around 4.6% to 4.9%, suggesting improved asset utilization compared to the lower levels seen in early 2023.

Financial Leverage

Financial leverage ratios exhibit a slight downward trend over the full period. Initial values were near 4.0 in late 2020, gradually decreasing to around 3.15–3.3 in later periods, reflecting a modest reduction in leverage. This decline stabilizes in the most recent quarters with fluctuations remaining within a narrow band around 3.1 to 3.2. The decrease may indicate a cautious approach to borrowing or a shift in capital structure towards more equity financing or retained earnings.

Return on Equity (ROE)

The ROE follows a trajectory similar to ROA but with heightened volatility and magnitude, consistent with the effect of financial leverage. Beginning at 9.18% in August 2020, it rose sharply to its highest point of 21.64% in May 2021. Subsequent rates show a gradual decline stabilizing between approximately 12% and 16% from early 2023 onward. The last several periods demonstrate ROE values fluctuating around 14.5% to 16.5%, indicating steady profitability and shareholder returns despite some variability.

Overall, the company experienced a robust improvement in profitability metrics through 2021, followed by a correction phase leading into 2023. Since then, key financial ratios have plateaued at moderate levels, reflecting a stabilized financial performance. The consistent financial leverage ratio suggests maintained capital structure discipline amidst these profitability trends.

The analysis of the quarterly financial indicators reveals several noteworthy trends and dynamics in the company’s performance over the observed periods.

Net Profit Margin

The net profit margin displays a general upward trend from 2.5% to a peak around 6.23%, occurring near mid-2021. After that peak, there is a decline, stabilizing around a range of 3.5% to 5%, with a modest recovery toward the latter periods. This pattern suggests early improvements in profitability that faced some challenges but later showed resilience and moderate growth.

Asset Turnover

Asset turnover ratios indicate increasing efficiency in using assets to generate sales, rising modestly from 0.92 to approximately 1.1 by late 2022. Subsequently, a gradual decline follows, and the ratio fluctuates slightly around 1.0 to 1.03 in more recent quarters. This suggests the company initially improved asset utilization, but the momentum slowed and stabilized, indicating more consistent operational efficiency.

Financial Leverage

Financial leverage ratios consistently decline over the periods analyzed, moving from roughly 3.99 down to 3.17. This steady decrease signals a reduction in the use of debt relative to equity, which may reflect a deliberate strategy to deleverage and strengthen the capital structure, potentially lowering financial risk.

Return on Equity (ROE)

ROE shows a strong upward trend early on, peaking at 21.64% in mid-2021, mirroring the net profit margin’s peak period. Thereafter, ROE declines steadily, then stabilizes in the 14% to 16% range in the more recent periods. This suggests that despite the reduction in financial leverage and fluctuations in profitability and asset turnover, the company maintains a solid return to shareholders, albeit at a lower level than the peak.

Overall, the data indicate that the company experienced a period of improving profitability and efficiency leading up to mid-2021, followed by a period of normalization and stabilization. The reduction in financial leverage reflects a conservative financial approach, while asset turnover and profit margins settled into moderate ranges. These combined factors contributed to a stable but somewhat moderated return on equity in recent quarters.

Net Profit Margin

The net profit margin displayed an overall upward trend from August 2020, starting at 2.5% and peaking around May 2021 at 6.23%. Following this peak, there was a gradual decline until early 2023, reaching approximately 3.23%. Subsequently, the margin improved again and stabilized between 4.4% and 5%, maintaining relative consistency through to November 2025. This indicates periods of both expansion and contraction in profitability, with a tendency toward stabilization at a moderately elevated margin in the most recent quarters.

Asset Turnover

Asset turnover showed a moderate increase from 0.92 in August 2020 to a high of 1.1 during late 2021 and early 2022. After this peak, there was a slight decline and fluctuation around the 1.0 to 1.02 range extending through to November 2025. The pattern suggests initial improvements in asset utilization efficiency, followed by a phase of plateauing with minor variability. The asset turnover ratio remained relatively stable in the latter periods, reflecting consistent use of assets in generating revenue.

Return on Assets (ROA)

ROA followed a trajectory similar to the net profit margin, starting at 2.3% in August 2020 and rising sharply to a peak of 6.32% in May 2021. Post this peak, ROA declined steadily to about 3.49% by February 2023, before recovering to a range between approximately 4.5% and 5.1%, where it remained through the end of the observed periods. This pattern reveals an initial phase of improving operational efficiency and profitability, followed by some weakening and eventual stabilization at a moderate level.

Summary

The financial indicators reflect initial growth in profitability and asset efficiency through the early part of the timeline, particularly peaking around mid-2021. Subsequently, all three metrics—net profit margin, asset turnover, and ROA—experienced declines indicating some operational or market challenges. However, from early 2023 onward, there is evidence of recovery and stabilization in these measures. The company appears to have returned to a sustainable level of profitability and operational efficiency, maintaining consistent asset utilization and satisfactory returns on asset investments in recent periods.