Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
FedEx Corp., liquidity ratios
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
The liquidity profile exhibits a consistent downward trend from 2021 through 2025, followed by a significant recovery in 2026. This trajectory indicates a period of tightening short-term solvency that culminated in May 31, 2025, before a sharp reversal improved the overall liquidity position.
- Current Ratio
- A gradual erosion of the current ratio is observed, declining from 1.51 in 2021 to a period low of 1.19 in 2025. This suggests a narrowing margin of safety regarding the ability to cover short-term obligations with current assets. However, a strong recovery is evident by May 31, 2026, as the ratio rises to 1.48.
- Quick Ratio
- The quick ratio follows a nearly identical pattern to the current ratio, decreasing from 1.40 in 2021 to 1.09 in 2025, before rebounding to 1.37 in 2026. The narrow gap between the current and quick ratios suggests that inventories comprise a relatively small portion of the total current assets, indicating that liquidity is not heavily dependent on inventory liquidation.
- Cash Ratio
- Cash liquidity remained stable between 0.48 and 0.52 from 2021 to 2024. A significant contraction occurred in 2025, with the ratio dropping to 0.36. This was followed by a substantial increase to 0.70 in 2026, representing the highest level of immediate cash availability relative to current liabilities throughout the analyzed period.
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Current Ratio
FedEx Corp., current ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 27,903) | 18,386) | 18,207) | 18,610) | 20,365) | 20,580) | |
| Current liabilities | 18,912) | 15,411) | 13,355) | 13,586) | 14,274) | 13,660) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.48 | 1.19 | 1.36 | 1.37 | 1.43 | 1.51 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Uber Technologies Inc. | — | 1.14 | 1.07 | 1.19 | 1.04 | 0.98 | |
| Union Pacific Corp. | — | 0.91 | 0.77 | 0.81 | 0.72 | 0.62 | |
| United Airlines Holdings Inc. | — | 0.65 | 0.81 | 0.83 | 1.00 | 1.19 | |
| United Parcel Service Inc. | — | 1.22 | 1.17 | 1.10 | 1.22 | 1.42 | |
| Current Ratio, Sector | |||||||
| Transportation | — | 0.98 | 1.04 | 1.06 | 1.14 | 1.24 | |
| Current Ratio, Industry | |||||||
| Industrials | — | 1.13 | 1.19 | 1.16 | 1.20 | 1.29 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 27,903 ÷ 18,912 = 1.48
2 Click competitor name to see calculations.
Between May 2021 and May 2026, liquidity metrics exhibited a period of gradual contraction followed by a significant expansion. The overall trend indicates a tightening of short-term solvency over a five-year period, culminating in a sharp recovery in the final year of the analyzed period.
- Current Asset Trajectory
- Current assets experienced a consistent downward trajectory from May 2021, when they stood at US$ 20,580 million, through May 2024, reaching a low of US$ 18,207 million. Following a period of relative stability in 2025, a substantial increase was recorded by May 2026, with assets rising to US$ 27,903 million, representing a significant expansion of short-term resources.
- Current Liability Dynamics
- Current liabilities remained relatively stable between 2021 and 2024, fluctuating within a narrow range between US$ 13,355 million and US$ 14,274 million. An upward trend emerged starting in May 2025, with liabilities increasing to US$ 15,411 million, and continuing into May 2026, where they reached US$ 18,912 million, indicating a growth in short-term obligations.
- Current Ratio Analysis
- The current ratio declined steadily from 1.51 in May 2021 to a minimum of 1.19 in May 2025. This compression reflects a decrease in the margin of safety for meeting short-term obligations. This trend reversed sharply in May 2026, with the ratio recovering to 1.48. This recovery was driven primarily by the aggressive growth in current assets, which significantly outpaced the corresponding increase in current liabilities during that fiscal year.
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Quick Ratio
FedEx Corp., quick ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 13,311) | 5,502) | 6,501) | 6,856) | 6,897) | 7,087) | |
| Receivables, less allowances | 12,672) | 11,368) | 10,087) | 10,188) | 11,863) | 12,069) | |
| Total quick assets | 25,983) | 16,870) | 16,588) | 17,044) | 18,760) | 19,156) | |
| Current liabilities | 18,912) | 15,411) | 13,355) | 13,586) | 14,274) | 13,660) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.37 | 1.09 | 1.24 | 1.25 | 1.31 | 1.40 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.98 | 0.95 | 1.02 | 0.88 | 0.82 | |
| Union Pacific Corp. | — | 0.67 | 0.56 | 0.62 | 0.53 | 0.47 | |
| United Airlines Holdings Inc. | — | 0.56 | 0.71 | 0.73 | 0.91 | 1.10 | |
| United Parcel Service Inc. | — | 1.09 | 1.03 | 0.82 | 1.00 | 1.30 | |
| Quick Ratio, Sector | |||||||
| Transportation | — | 0.86 | 0.92 | 0.89 | 0.99 | 1.12 | |
| Quick Ratio, Industry | |||||||
| Industrials | — | 0.67 | 0.68 | 0.65 | 0.71 | 0.80 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,983 ÷ 18,912 = 1.37
2 Click competitor name to see calculations.
The analysis of liquidity positions from May 31, 2021, to May 31, 2026, reveals a period of gradual contraction in the quick ratio followed by a significant recovery in the final year of the period.
- Total Quick Assets Trend
- A consistent decline in quick assets was observed between 2021 and 2024, falling from 19,156 million US$ to a low of 16,588 million US$. A marginal increase occurred in 2025, followed by a substantial surge in 2026, where assets reached 25,983 million US$, representing the highest liquidity level in the analyzed timeframe.
- Current Liabilities Trajectory
- Current liabilities exhibited fluctuations, peaking initially in 2022 at 14,274 million US$ before decreasing to 13,355 million US$ by 2024. A notable upward trend emerged in the final two years, with liabilities rising to 15,411 million US$ in 2025 and further increasing to 18,912 million US$ by May 31, 2026.
- Quick Ratio Performance
- The quick ratio demonstrated a steady downward trend for five consecutive years, decreasing from 1.40 in 2021 to a period low of 1.09 in 2025. This decline indicates a narrowing margin of liquid assets available to cover immediate obligations. However, the ratio rebounded to 1.37 in 2026, driven by the disproportionate increase in quick assets relative to the growth in current liabilities.
The data indicates that while the liquidity position weakened between 2021 and 2025, the significant asset accumulation in 2026 effectively restored the quick ratio to levels nearly identical to those seen at the beginning of the period, maintaining a position where liquid assets exceed current liabilities.
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Cash Ratio
FedEx Corp., cash ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 13,311) | 5,502) | 6,501) | 6,856) | 6,897) | 7,087) | |
| Total cash assets | 13,311) | 5,502) | 6,501) | 6,856) | 6,897) | 7,087) | |
| Current liabilities | 18,912) | 15,411) | 13,355) | 13,586) | 14,274) | 13,660) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.70 | 0.36 | 0.49 | 0.50 | 0.48 | 0.52 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.67 | 0.66 | 0.66 | 0.56 | 0.55 | |
| Union Pacific Corp. | — | 0.30 | 0.20 | 0.21 | 0.18 | 0.18 | |
| United Airlines Holdings Inc. | — | 0.47 | 0.62 | 0.65 | 0.82 | 1.01 | |
| United Parcel Service Inc. | — | 0.38 | 0.37 | 0.18 | 0.31 | 0.58 | |
| Cash Ratio, Sector | |||||||
| Transportation | — | 0.45 | 0.51 | 0.47 | 0.52 | 0.65 | |
| Cash Ratio, Industry | |||||||
| Industrials | — | 0.30 | 0.31 | 0.28 | 0.32 | 0.39 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 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).
1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 13,311 ÷ 18,912 = 0.70
2 Click competitor name to see calculations.
The liquidity position exhibits a period of relative stability followed by a significant contraction and a subsequent sharp recovery. The overall trend indicates a volatile relationship between cash reserves and short-term obligations over the six-year period ending May 31, 2026.
- Total Cash Assets Trend
- A gradual decline in cash holdings is observed from May 31, 2021, through May 31, 2025, with assets decreasing from $7,087 million to a minimum of $5,502 million. This downward trajectory is reversed in 2026, characterized by a substantial increase to $13,311 million.
- Current Liabilities Trend
- Short-term obligations remained relatively consistent between 2021 and 2024, fluctuating within a range of $13,355 million to $14,274 million. A notable upward trend emerged in 2025, with liabilities rising to $15,411 million and continuing to increase to $18,912 million by May 31, 2026.
- Cash Ratio Interpretation
- The cash ratio remained stable between 0.48 and 0.52 from 2021 to 2024. A sharp decline to 0.36 occurred in 2025, representing the lowest liquidity point in the analyzed period. This was followed by a significant recovery in 2026, where the ratio reached a peak of 0.70. This final increase was driven by the surge in cash assets, which more than offset the simultaneous rise in current liabilities.
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