FedEx Corp. (NYSE:FDX)

Return on Assets (ROA)

The ROA exhibits a general upward trend from May 31, 2020, when it was 1.75%, reaching a peak of 6.32% in August 31, 2021. Following this peak, there is a gradual decline to a low of 3.49% by May 31, 2023. After this period, ROA recovers moderately, fluctuating between 4.45% and 5.1% through August 31, 2024, before stabilizing around 4.6% in the subsequent quarters ending August 31, 2025. The data indicates initial strong asset utilization improvement followed by some volatility and stabilization at a moderate level.

Financial Leverage

Financial leverage starts at a relatively high ratio of approximately 3.77 in August 31, 2019, and demonstrates a general downward trend over the observed periods. The ratio decreases steadily, showing a decline to around 3.12 by May 31, 2025. This indicates a gradual reduction in the use of debt or other liabilities compared to equity, reflecting a potential shift towards a more conservative capital structure or improved equity base.

Return on Equity (ROE)

ROE shows a sharp increase starting from May 31, 2020, at 7.03%, rising to a peak of 21.64% by August 31, 2021. After this peak, it declines somewhat, stabilizing in a range between approximately 12.1% and 16.66% from May 31, 2023, through August 31, 2024, and maintains just below 15% in the last quarters ending August 31, 2025. This pattern suggests initially significant improvements in equity returns, followed by a moderated but consistent performance, possibly influenced by changes in asset efficiency and financial leverage.

Net Profit Margin

The net profit margin demonstrated an overall upward trend from May 2020, starting at 1.86%, and steadily increased to a peak of 6.23% in August 2021. After reaching this high, the margin exhibited a moderate decline, stabilizing around the 4.5% to 5% range from mid-2022 through August 2025. This pattern suggests an initial improvement in profitability, followed by a period of stabilization at a relatively elevated profit margin.

Asset Turnover

Asset turnover ratios were first reported in May 2020 at 0.94 and showed a general upward progression until around August 2022, where it peaked at approximately 1.10. Following this peak, there was a slight decrease with values fluctuating around 1.00 to 1.03 through to August 2025. The figures indicate improved efficiency in asset utilization early on, with a tapering and stabilization of efficiency in the later periods.

Financial Leverage

Financial leverage ratios began at 3.77 in August 2019 and remained relatively stable through November 2019 and February 2020. There was a noticeable increase reaching 4.02 in May 2020, followed by a consistent and gradual decline over the subsequent quarters, settling at approximately 3.18 by August 2025. This decreasing trend may reflect a reduction in reliance on debt or other leveraged financing methods over time.

Return on Equity (ROE)

ROE commenced reporting in May 2020 at 7.03% and quickly rose sharply to a peak of 21.64% by August 2021. After this peak, a downward trend ensued with ROE values declining to around 13.82% by February 2023. From this low, there was a moderate recovery and stabilization, with ROE figures remaining in the 14.5% to 16.7% range from mid-2023 through August 2025. This trajectory indicates an initial improvement in efficiency generating returns on equity, followed by some volatility and eventual stabilization at a sustainable level.

The analysis of the financial data reveals several important trends across the monitored periods.

Net Profit Margin

The net profit margin shows an overall increasing trend from May 31, 2020, starting at 1.86%, and rising steadily to a peak of 6.23% by August 31, 2021. Following this peak, there is a gradual decline, settling around the mid-4% range during the most recent periods, with slight fluctuations but maintaining stability between approximately 4.4% and 5.0%. This suggests that profitability improved significantly in the initial quarters but then moderated to a lower, yet stable, profit level relative to revenue.

Asset Turnover

The asset turnover ratio began at 0.94 in May 31, 2020 and showed a generally positive upward trend, peaking near 1.10 during the periods from August 31, 2021 to February 28, 2023. After this peak, a gradual decline occurs, with figures stabilizing close to 1.00 in the latest reported quarters. This indicates that the company enhanced its efficiency in utilizing assets to generate revenue initially, and then experienced a moderation towards maintaining steady asset utilization efficiency.

Return on Assets (ROA)

ROA mirrors the pattern observed in net profit margin, starting at 1.75% in May 31, 2020 and increasing steadily to 6.32% by August 31, 2021. Subsequently, a decline ensues, with values tapering off to a range around 4.5% to 5.1% in the latter periods. The data demonstrates that the company initially increased its ability to generate returns from assets but later experienced a reduction, settling into a consistent, moderate return level.

In summary, the data indicate that the company experienced a phase of improving profitability and operational efficiency from 2020 through mid-2021, as evidenced by upward trends in net profit margin, asset turnover, and ROA. Following this period, these ratios moderated and stabilized, reflecting a possible normalization after a phase of growth or favorable conditions. The relatively stable values in recent quarters suggest that the company is maintaining its performance, albeit below the peak levels seen earlier in the period examined.