FedEx Corp. (NYSE:FDX)

Current Ratio

The current ratio exhibits a general pattern of fluctuation over the periods analyzed. Initially, it trended downward from 1.31 in August 2019 to 1.21 in February 2020, followed by a notable increase peaking around 1.76 in November 2020. After this peak, the ratio decreased gradually, stabilizing within the 1.3 to 1.4 range through mid-2023. Towards late 2023 and through mid-2025, there is a slight downward trend again, reaching approximately 1.19 by May 2025. This pattern suggests periods of strengthening liquidity followed by phases of moderate decline, but overall the ratio remains above 1, indicating the company consistently maintained more current assets than current liabilities.

Quick Ratio

The quick ratio follows a similar trend to the current ratio but is consistently lower, reflecting the exclusion of inventory from current assets. It decreases from 1.18 in August 2019 to a low of 1.07 in February 2020, then rises sharply, peaking at 1.63 in November 2020. Post-peak, the ratio declines steadily, hovering around the 1.15 to 1.25 range into mid-2023. Afterward, there is a moderate downtrend reaching approximately 1.09 by May 2025. This indicates that while the company's liquid assets relative to current liabilities improved significantly during the latter part of 2020, the liquidity buffer has somewhat diminished over the following years but remains above 1, suggesting an adequate ability to cover short-term obligations without reliance on inventory.

Cash Ratio

The cash ratio reveals more volatility and lower values compared to the other liquidity ratios, as it considers only cash and cash equivalents. Initially, it is low at 0.24 in August 2019 and declines further to 0.17 by February 2020. This level then markedly increases, reaching a peak of 0.69 in November 2020. Subsequently, the ratio fluctuates between approximately 0.33 and 0.53 through mid-2023, reflecting variability in immediate cash holdings. From late 2023 onwards, the cash ratio generally trends downward, reaching around 0.36 by May 2025. This indicates that despite increases during late 2020, the company's most liquid assets have experienced reductions in the latter periods analyzed, potentially signaling more conservative cash management or changes in operational strategy affecting immediate liquidity.

The analysis of the quarterly financial data reveals distinct trends in the liquidity position, represented by current assets, current liabilities, and the current ratio, over the observed periods.

Current Assets

Current assets demonstrated an overall increasing trend from August 2019 through November 2020, rising from 13,017 million US dollars to a peak of 21,265 million. Following this peak, the values fluctuated with a general downward trend, reaching approximately 17,214 million in February 2025 before a slight recovery to 18,386 million in May 2025. This pattern suggests an initial expansion in short-term asset holdings, which later experienced a gradual decline.

Current Liabilities

Current liabilities showed a consistent upward trajectory across the entire timeline. Beginning at 9,935 million in August 2019, liabilities increased steadily to 15,411 million by May 2025. The persistent rise in current liabilities indicates growing short-term obligations and potentially increased operational or financing activities requiring short-term funds.

Current Ratio

The current ratio, a key liquidity metric, exhibited some volatility over the quarters. Initially declining from 1.31 in August 2019 to 1.21 in February 2020, it then improved sharply to a high of 1.76 in November 2020. Subsequent periods showed a gradual decrease in the ratio, settling around 1.19 by May 2025. Although the company maintained a current ratio above 1 throughout, the downward movement in recent periods might signal tightening liquidity conditions relative to the early part of the series.

In summary, the data indicates that while current assets expanded significantly in the initial periods, they did not keep pace with the accelerating growth in current liabilities over time. This imbalance is captured in the declining current ratio in the later quarters, reflecting reduced liquidity cushioning. Stakeholders should monitor this trend as it may affect the firm's ability to meet short-term obligations comfortably in the future.

Trend in Total Quick Assets

Total quick assets exhibited fluctuations over the observed periods. Initially, there was a decline from 11,701 million US dollars in August 2019 to 11,089 million in February 2020. A significant increase followed in mid-2020, peaking at 20,337 million in February 2021. Thereafter, the asset levels generally declined with some intermittent rises, ending at 16,870 million by May 2025. The mid-term peak indicates a substantial boost in liquid assets during the pandemic period, followed by a gradual normalization.

Trend in Current Liabilities

Current liabilities increased steadily from 9,935 million US dollars in August 2019 to a peak of 14,274 million in May 2022. After this peak, liabilities showed slight volatility but remained elevated above 13,000 million through the following periods, eventually reaching 15,411 million by May 2025. This rising trend suggests growing short-term obligations over the years, reflecting either increased operational scale or shifts in working capital management.

Trend in Quick Ratio

The quick ratio displayed an initial decline from 1.18 in August 2019 to a low of 1.07 in February 2020, followed by a notable increase reaching a peak of 1.63 in November 2020. During 2021, the ratio gradually decreased and stabilized around 1.3 before declining further in later years, reaching 1.09 in May 2025. Generally, the ratio stayed above 1, indicating the company maintained quick assets sufficient to cover current liabilities, though the gradual decrease suggests a slight tightening of liquidity buffers over time.

Overall Insights

Over the analyzed period, the company experienced significant growth and subsequent partial consolidation in quick assets, indicative of active liquidity management and response to external conditions, such as market disruptions. The steady increase in current liabilities suggests an expansion or shift in working capital strategy, which, when combined with the fluctuating quick ratio, points to a dynamic balance between liquidity and short-term obligations. The decrease in the quick ratio towards the recent period warrants attention, as it may signal reduced short-term financial flexibility if the trend continues.

Total Cash Assets

The total cash assets exhibit significant fluctuations over the examined periods. Starting at 2,389 million USD in August 2019, the figure declines to a low of 1,766 million USD by February 2020. Subsequently, there is a marked increase reaching a peak of 8,856 million USD by February 2021. After this peak, cash assets generally trend downward with some intermittent increases, falling to around 4,646 million USD in November 2022. Following this trough, there is a modest recovery with amounts hovering roughly between 5,000 and 7,000 million USD, before settling near 5,502 million USD by May 2025. This pattern indicates periods of cash accumulation followed by drawdowns, potentially reflecting fluctuations in liquidity management and operating cash flows.

Current Liabilities

Current liabilities display a steady upward trend throughout the timeframe. Beginning at 9,935 million USD in August 2019, liabilities consistently increase, reaching 15,411 million USD by May 2025. The growth is relatively smooth with minor short-term variability, suggesting an ongoing expansion in obligations due within a year. This trend may reflect increased operational scale, financing activities, or working capital requirements.

Cash Ratio

The cash ratio demonstrates notable volatility but generally follows a pattern parallel to cash asset fluctuations. Initially low at 0.24 in August 2019, the ratio decreases to 0.17 by February 2020, then rapidly climbs to a high of 0.69 in November 2020. Subsequently, the ratio moderates to levels around 0.5 before declining again to 0.33 in November 2022, in line with the downward movement of cash assets. In the final periods, the ratio stabilizes within the 0.35 to 0.5 range, ending at 0.36 in May 2025. This indicates that cash relative to current liabilities improved substantially during late 2020, suggesting enhanced liquidity, but then normalized to lower levels thereafter.