Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
FedEx Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
The analysis of liquidity ratios over the quarterly periods reveals several noteworthy trends in the company's short-term financial health.
- Current Ratio
- The current ratio demonstrates a general declining trend from August 31, 2020, when it was at 1.69, to August 31, 2025, concluding at 1.25. Initial fluctuations include a peak at 1.76 in November 2020, followed by a steady decline with minor recoveries around May 2023 (1.37) and May 2024 (1.36). The ratio consistently remains above 1, indicating that current assets have been adequate to cover current liabilities, though the declining trend suggests a gradual tightening in liquidity over the examined period.
- Quick Ratio
- Similarly, the quick ratio depicts a decreasing pattern from 1.56 in August 2020 to 1.14 in August 2025. It reached a peak of 1.63 in November 2020 and then tapered off with some slight increases, notably in May 2023 (1.25) and May 2024 (1.24). This ratio’s narrowing gap relative to the current ratio indicates a slight reduction in highly liquid assets excluding inventory, maintaining a strong but diminishing liquidity position.
- Cash Ratio
- Unlike the current and quick ratios, the cash ratio shows more pronounced volatility and an overall lower absolute value, starting from 0.62 in August 2020 and closing at 0.40 by August 2025. The ratio peaked early at 0.69 in November 2020, dropped sharply to a low of 0.33 in November 2022, then experienced fluctuations with a moderate recovery to around 0.5 in mid-2023 before declining again below 0.4 towards mid-2025. This behavior indicates fluctuations in cash and cash equivalents relative to current liabilities, implying more variability in the company’s immediate liquidity buffer.
Overall, the liquidity position as depicted by all three ratios has weakened moderately over the five-year span. While the company still holds a current ratio above 1, suggesting the ability to meet short-term obligations, the downward trend across all ratios points to a relative tightening of liquidity resources. The sharpest decline is observed in the cash ratio, indicating lower levels of the most liquid assets available over time. These trends may warrant monitoring to ensure ongoing operational flexibility and financial stability.
Current Ratio
FedEx Corp., current ratio calculation (quarterly data)
| Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 19,344) | 18,386) | 17,214) | 17,721) | 18,094) | 18,207) | 17,424) | 19,117) | 18,887) | 18,610) | 17,944) | 18,217) | 19,606) | 20,365) | 19,466) | 20,747) | 19,546) | 20,580) | 21,710) | 21,265) | 18,903) | |||||||
| Current liabilities | 15,524) | 15,411) | 13,896) | 14,392) | 14,111) | 13,355) | 13,308) | 14,248) | 13,811) | 13,586) | 13,580) | 14,039) | 13,765) | 14,274) | 13,990) | 13,884) | 12,910) | 13,660) | 13,566) | 12,115) | 11,195) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 1.25 | 1.19 | 1.24 | 1.23 | 1.28 | 1.36 | 1.31 | 1.34 | 1.37 | 1.37 | 1.32 | 1.30 | 1.42 | 1.43 | 1.39 | 1.49 | 1.51 | 1.51 | 1.60 | 1.76 | 1.69 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 1.11 | 1.02 | 1.07 | 1.41 | 1.21 | 1.21 | 1.19 | 1.14 | 1.23 | 1.06 | 1.04 | 1.04 | 0.98 | 1.00 | 0.98 | 1.19 | 1.01 | 1.14 | |||||||
| Union Pacific Corp. | — | — | 0.75 | 0.65 | 0.73 | 0.77 | 0.77 | 1.05 | 0.93 | 0.81 | 0.72 | 0.71 | 0.65 | 0.72 | 0.77 | 0.66 | 0.71 | 0.62 | 0.75 | 0.86 | 0.76 | |||||||
| United Airlines Holdings Inc. | — | — | 0.67 | 0.70 | 0.78 | 0.81 | 0.79 | 0.77 | 0.75 | 0.83 | 0.89 | 0.91 | 0.91 | 1.00 | 1.03 | 1.04 | 1.04 | 1.19 | 1.36 | 1.37 | 1.13 | |||||||
| United Parcel Service Inc. | — | — | — | 1.32 | 1.09 | 1.17 | 1.14 | 1.25 | 1.10 | 1.10 | 1.22 | 1.32 | 1.34 | 1.22 | 1.39 | 1.47 | 1.52 | 1.42 | 1.48 | 1.39 | 1.29 | |||||||
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,344 ÷ 15,524 = 1.25
2 Click competitor name to see calculations.
- Current Assets
-
Current assets exhibit a fluctuating trend over the observed periods. There is an initial increase from approximately 18.9 billion USD in August 2020 to a peak near 21.7 billion USD in February 2021. This is followed by a gradual decline and oscillation, reaching a low of about 17.4 billion USD in August 2024. Towards the end of the timeline, current assets show signs of recovery, rising to approximately 19.3 billion USD by August 2025.
- Current Liabilities
-
Current liabilities generally increase over the timeline, starting around 11.2 billion USD in August 2020. There is a steady upward progression with minor fluctuations, peaking at roughly 15.5 billion USD by August 2025. This indicates a rising obligation level in the company’s short-term liabilities throughout the periods analyzed.
- Current Ratio
-
The current ratio shows a consistent downward trend from 1.69 in August 2020 to a low of 1.19 in August 2025, suggesting a decrease in liquidity over time. Minor rebounds are present intermittently, but the overall pattern points to the company’s shrinking buffer to cover short-term liabilities with current assets. The ratio remains above 1.0 throughout, indicating that current assets continue to exceed current liabilities, but the margin diminishes progressively.
- Summary and Insights
-
The financial trends suggest that the company has faced increasing current liabilities alongside a non-linear but gradually declining current asset base. The shrinking current ratio warns of decreasing liquidity and potentially tighter working capital conditions. While the current ratio remains above the critical threshold of 1, the declining trend implies growing pressure on the company’s short-term financial stability. The data may reflect operational challenges, higher short-term debts, or changes in asset management practices that warrant monitoring in subsequent periods.
Quick Ratio
FedEx Corp., quick ratio calculation (quarterly data)
| Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 6,166) | 5,502) | 5,135) | 5,029) | 5,943) | 6,501) | 5,644) | 6,729) | 7,055) | 6,856) | 5,373) | 4,646) | 6,850) | 6,897) | 6,065) | 6,833) | 6,853) | 7,087) | 8,856) | 8,339) | 6,954) | |||||||
| Receivables, less allowances | 11,516) | 11,368) | 10,230) | 10,737) | 10,312) | 10,087) | 9,904) | 10,665) | 10,207) | 10,188) | 10,721) | 11,644) | 11,055) | 11,863) | 11,668) | 12,197) | 11,125) | 12,069) | 11,481) | 11,417) | 10,508) | |||||||
| Total quick assets | 17,682) | 16,870) | 15,365) | 15,766) | 16,255) | 16,588) | 15,548) | 17,394) | 17,262) | 17,044) | 16,094) | 16,290) | 17,905) | 18,760) | 17,733) | 19,030) | 17,978) | 19,156) | 20,337) | 19,756) | 17,462) | |||||||
| Current liabilities | 15,524) | 15,411) | 13,896) | 14,392) | 14,111) | 13,355) | 13,308) | 14,248) | 13,811) | 13,586) | 13,580) | 14,039) | 13,765) | 14,274) | 13,990) | 13,884) | 12,910) | 13,660) | 13,566) | 12,115) | 11,195) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 1.14 | 1.09 | 1.11 | 1.10 | 1.15 | 1.24 | 1.17 | 1.22 | 1.25 | 1.25 | 1.19 | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 1.40 | 1.50 | 1.63 | 1.56 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 0.97 | 0.89 | 0.95 | 1.27 | 1.05 | 1.03 | 1.02 | 0.96 | 1.04 | 0.88 | 0.88 | 0.88 | 0.83 | 0.83 | 0.82 | 1.01 | 0.85 | 0.96 | |||||||
| Union Pacific Corp. | — | — | 0.52 | 0.46 | 0.54 | 0.55 | 0.56 | 0.76 | 0.68 | 0.61 | 0.51 | 0.51 | 0.49 | 0.52 | 0.58 | 0.47 | 0.52 | 0.47 | 0.56 | 0.64 | 0.57 | |||||||
| United Airlines Holdings Inc. | — | — | 0.58 | 0.62 | 0.68 | 0.71 | 0.69 | 0.68 | 0.66 | 0.73 | 0.78 | 0.83 | 0.82 | 0.91 | 0.94 | 0.95 | 0.95 | 1.10 | 1.25 | 1.27 | 1.01 | |||||||
| United Parcel Service Inc. | — | — | — | 1.17 | 0.95 | 1.05 | 1.01 | 1.03 | 0.96 | 0.98 | 1.06 | 1.19 | 1.21 | 1.11 | 1.26 | 1.35 | 1.41 | 1.32 | 1.36 | 1.27 | 1.12 | |||||||
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 17,682 ÷ 15,524 = 1.14
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity and short-term financial stability over the observed periods.
- Total Quick Assets
- The total quick assets display a fluctuating trend with notable peaks and troughs. Starting at approximately $17.5 billion, the value increased moderately to around $20.3 billion early on, followed by a general decline and variability through the subsequent quarters. While there are intermittent recoveries near $17.3 billion in the mid-term, the values tend to dip again, reaching lows around $15.5 billion to $15.7 billion in some recent quarters. The latest data shows a moderate improvement, rising again to about $17.7 billion. This pattern suggests some volatility in quick assets, with periodic replenishments yet no sustained upward momentum.
- Current Liabilities
- Current liabilities exhibit a general increasing trend over the observed periods. Starting near $11.2 billion, liabilities rise steadily, peaking and fluctuating around the $14 billion to $15.5 billion mark in the recent quarters. The data does not show significant periods of decline, indicating growing short-term obligations that may exert pressure on liquidity if not matched by asset growth.
- Quick Ratio
- The quick ratio, a key indicator of short-term liquidity, demonstrates a declining pattern across the timeframe. Initially strong at approximately 1.56, it decreases gradually, with fluctuations but an overall downward trajectory, reaching a low point slightly above 1.09 in one of the latest quarters. The ratio's recent small uptick to around 1.14 suggests minimal improvement but remains well below early period levels. This downward trend could signify increasing challenges in covering current liabilities with quick assets alone, reflecting a potential weakening in immediate financial flexibility.
In summary, the company shows volatility in quick assets with moderate recent recovery, steady growth in current liabilities, and a declining quick ratio indicating reduced short-term liquidity strength. This trend calls for close monitoring to ensure that short-term obligations remain manageable relative to liquid assets.
Cash Ratio
FedEx Corp., cash ratio calculation (quarterly data)
| Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 6,166) | 5,502) | 5,135) | 5,029) | 5,943) | 6,501) | 5,644) | 6,729) | 7,055) | 6,856) | 5,373) | 4,646) | 6,850) | 6,897) | 6,065) | 6,833) | 6,853) | 7,087) | 8,856) | 8,339) | 6,954) | |||||||
| Total cash assets | 6,166) | 5,502) | 5,135) | 5,029) | 5,943) | 6,501) | 5,644) | 6,729) | 7,055) | 6,856) | 5,373) | 4,646) | 6,850) | 6,897) | 6,065) | 6,833) | 6,853) | 7,087) | 8,856) | 8,339) | 6,954) | |||||||
| Current liabilities | 15,524) | 15,411) | 13,896) | 14,392) | 14,111) | 13,355) | 13,308) | 14,248) | 13,811) | 13,586) | 13,580) | 14,039) | 13,765) | 14,274) | 13,990) | 13,884) | 12,910) | 13,660) | 13,566) | 12,115) | 11,195) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.40 | 0.36 | 0.37 | 0.35 | 0.42 | 0.49 | 0.42 | 0.47 | 0.51 | 0.50 | 0.40 | 0.33 | 0.50 | 0.48 | 0.43 | 0.49 | 0.53 | 0.52 | 0.65 | 0.69 | 0.62 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 0.67 | 0.60 | 0.66 | 0.92 | 0.69 | 0.66 | 0.66 | 0.64 | 0.75 | 0.58 | 0.56 | 0.61 | 0.55 | 0.55 | 0.55 | 0.85 | 0.69 | 0.81 | |||||||
| Union Pacific Corp. | — | — | 0.15 | 0.16 | 0.23 | 0.19 | 0.18 | 0.27 | 0.20 | 0.21 | 0.14 | 0.16 | 0.17 | 0.18 | 0.22 | 0.13 | 0.17 | 0.17 | 0.23 | 0.26 | 0.24 | |||||||
| United Airlines Holdings Inc. | — | — | 0.49 | 0.54 | 0.59 | 0.62 | 0.61 | 0.59 | 0.57 | 0.65 | 0.69 | 0.75 | 0.73 | 0.82 | 0.85 | 0.86 | 0.86 | 1.01 | 1.15 | 1.17 | 0.92 | |||||||
| United Parcel Service Inc. | — | — | — | 0.44 | 0.32 | 0.38 | 0.40 | 0.43 | 0.31 | 0.34 | 0.46 | 0.54 | 0.58 | 0.42 | 0.64 | 0.70 | 0.74 | 0.60 | 0.68 | 0.63 | 0.50 | |||||||
Based on: 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,166 ÷ 15,524 = 0.40
2 Click competitor name to see calculations.
The analysis of the recent quarterly financial metrics reveals several notable trends in liquidity and short-term financial management.
- Total Cash Assets
-
The total cash assets exhibit a fluctuating pattern over the observed periods, starting from a relatively strong position above US$6.9 billion and peaking early at around US$8.8 billion. Subsequently, the figure experiences intermittent declines and recoveries, with lows near US$4.6 billion and rebounds to the US$7 billion range. However, in the most recent quarters, there appears to be a gradual downtrend, with cash assets tending to stabilize slightly above US$5 billion. This variation suggests a cautious approach to cash reserves, with possibly increased cash utilization or reinvestment during certain periods.
- Current Liabilities
-
Current liabilities show a consistent upward trajectory throughout the period, rising from approximately US$11.2 billion to over US$15.5 billion. The increase is steady, with occasional accelerations, indicating growing short-term obligations. This trend could reflect expanded operational scale, increased payables, or other short-term financial commitments accumulating over time.
- Cash Ratio
-
The cash ratio, representing cash assets relative to current liabilities, shows a declining trend overall. It starts from a moderate level of about 0.62, drops to lows near 0.33 in the middle periods, and remains mostly below 0.5 in subsequent quarters. The most recent values hover between 0.35 and 0.4, indicating that cash holdings cover less than half of the current liabilities. This declining liquidity ratio suggests a reduced immediate cash buffer against short-term obligations, which may increase reliance on other liquid assets or credit facilities to meet liabilities.
In summary, while cash assets have fluctuated with some partial recovery, current liabilities have steadily increased, leading to a declining cash ratio. This pattern implies tighter liquidity conditions and a possible strategic shift in cash management and short-term funding. The company may need to monitor its liquidity position closely to ensure the capacity to meet short-term obligations without strain.