FedEx Corp. (FDX)

Liquidity Analysis

Difficulty: Beginner

Liquidity ratios measure the company's ability to meet its short-term obligations.

FedEx Corp., liquidity ratios

	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013	May 31, 2012
Current ratio	1.59	1.50	1.84	1.82	1.96	1.69
Quick ratio	1.46	1.35	1.59	1.58	1.73	1.40
Cash ratio	0.50	0.44	0.63	0.55	0.86	0.53

Source: Based on data from FedEx Corp. Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	FedEx Corp.'s current ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	FedEx Corp.'s quick ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	FedEx Corp.'s cash ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

FedEx Corp., current ratio calculation, comparison to benchmarks

	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013	May 31, 2012
Selected Financial Data (USD $ in millions)
Current assets	12,628	11,989	10,941	9,683	11,274	9,056
Current liabilities	7,918	8,008	5,957	5,312	5,750	5,374
Ratio
Current ratio¹	1.59	1.50	1.84	1.82	1.96	1.69
Benchmarks
Current Ratio, Competitors
Union Pacific Corp.	1.02	0.99	1.29	1.24	1.05	–
United Parcel Service Inc.	1.22	1.18	1.23	1.37	1.88	–
Current Ratio, Sector
Industrial Transportation	1.31	1.26	1.42	1.48	1.72	–
Current Ratio, Industry
Industrials	1.21	1.10	1.10	1.27	1.30	–

Source: Based on data from FedEx Corp. Annual Reports

2017 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 12,628 ÷ 7,918 = 1.59

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	FedEx Corp.'s current ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

FedEx Corp., quick ratio calculation, comparison to benchmarks

	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013	May 31, 2012
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	3,969	3,534	3,763	2,908	4,917	2,843
Receivables, less allowances	7,599	7,252	5,719	5,460	5,044	4,704
Total quick assets	11,568	10,786	9,482	8,368	9,961	7,547
Current liabilities	7,918	8,008	5,957	5,312	5,750	5,374
Ratio
Quick ratio¹	1.46	1.35	1.59	1.58	1.73	1.40
Benchmarks
Quick Ratio, Competitors
Union Pacific Corp.	0.70	0.70	0.86	0.85	0.75	–
United Parcel Service Inc.	1.01	1.05	1.11	1.15	1.65	–
Quick Ratio, Sector
Industrial Transportation	1.11	1.09	1.21	1.21	1.47	–
Quick Ratio, Industry
Industrials	0.72	0.62	0.61	0.72	0.75	–

Source: Based on data from FedEx Corp. Annual Reports

2017 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 11,568 ÷ 7,918 = 1.46

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	FedEx Corp.'s quick ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

FedEx Corp., cash ratio calculation, comparison to benchmarks

	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013	May 31, 2012
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	3,969	3,534	3,763	2,908	4,917	2,843
Total cash assets	3,969	3,534	3,763	2,908	4,917	2,843
Current liabilities	7,918	8,008	5,957	5,312	5,750	5,374
Ratio
Cash ratio¹	0.50	0.44	0.63	0.55	0.86	0.53
Benchmarks
Cash Ratio, Competitors
Union Pacific Corp.	0.32	0.35	0.43	0.42	0.38	–
United Parcel Service Inc.	0.32	0.39	0.44	0.38	0.74	–
Cash Ratio, Sector
Industrial Transportation	0.38	0.40	0.50	0.44	0.70	–
Cash Ratio, Industry
Industrials	0.32	0.25	0.24	0.32	0.35	–

Source: Based on data from FedEx Corp. Annual Reports

2017 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 3,969 ÷ 7,918 = 0.50

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	FedEx Corp.'s cash ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.