FedEx Corp. (NYSE:FDX)

Current Ratio

The current ratio demonstrated an overall declining trend over the observed periods. It started at 1.69 and reached approximately 1.27 by the end of the timeline. The ratio exhibited some fluctuations, with minor recoveries between certain quarters. For example, it dipped to 1.3 but later increased toward 1.37 before gradually decreasing again. By the final periods, the ratio consistently remained just above 1.2, indicating a gradual weakening in the company's short-term liquidity position.

Quick Ratio

The quick ratio followed a similar downward trend as the current ratio, suggesting a reduction in the most liquid assets relative to current liabilities. Beginning at 1.56, it experienced intermittent declines and modest recoveries but overall decreased to around 1.16 by the latest period. The gradual decline was consistent, with values rarely exceeding 1.25 after the mid-point of the timeframe. The reduction implies a cautious but persistent decrease in the company's ability to cover immediate liabilities with readily available assets.

Cash Ratio

The cash ratio showed the most pronounced volatility and an overall decreasing trend among the liquidity ratios. Starting at 0.62, it fluctuated considerably, with notable lows around 0.33 and 0.35 during certain quarters, and temporary recoveries approaching 0.5. Toward the end of the observed periods, the ratio settled near 0.41. This indicates that the company's cash and cash equivalents relative to current liabilities diminished over time, potentially reflecting tighter cash management or increased short-term obligations.

Current Assets

The current assets exhibit a fluctuating pattern over the observed periods. Initially, they rose from approximately 18.9 billion to a peak near 21.7 billion by early 2021. Following this peak, a gradual decline is evident, with values mostly hovering between 17.4 billion and 19.1 billion from mid-2023 onward. Toward the latest periods, there is a modest upward trend, reaching over 20.6 billion.

Current Liabilities

Current liabilities have shown a steady increase from about 11.2 billion to over 16.2 billion by the end of the dataset. This rise appears relatively consistent, with no significant reversals, reflecting escalating short-term obligations over time.

Current Ratio

The current ratio has steadily declined from a high of 1.76 to around 1.27, indicating a gradual reduction in liquidity. Early in the timeline, the current ratio was consistently above 1.5, but from mid-2022 onwards, it dropped below 1.4, approaching closer to 1.2 at certain points. This suggests that current liabilities have been growing at a faster pace relative to current assets, potentially signaling increasing short-term financial pressure.

Summary

Over the reported periods, current assets have not demonstrated sustained growth, instead showing volatility with some recovery in later periods. Current liabilities have expanded steadily, contributing to a declining current ratio. The diminishing current ratio points to a weakening liquidity position, which may warrant attention to short-term asset management and liability controls to maintain financial stability.

The analysis of the quarterly financial data indicates notable fluctuations and trends in the key liquidity metrics over the observed periods.

Total Quick Assets

The total quick assets demonstrate a cyclical pattern with peaks and troughs throughout the quarters. Starting at $17,462 million in August 2020, there is an upward trend reaching $20,337 million by February 2021. Subsequently, the value declines to around $15,548 million by February 2024, followed by a resurgence to $18,729 million by November 2025. This variation suggests periods of increased liquid asset accumulation followed by systematic reductions or asset utilization.

Current Liabilities

Current liabilities show an overall increasing trend with some fluctuations. From $11,195 million in August 2020, the liabilities rise steadily to reach $16,214 million by November 2025. Despite minor decreases in specific quarters, such as between May 2024 and August 2024, the upward trajectory indicates growing short-term obligations over the five-year span.

Quick Ratio

The quick ratio, reflecting the ability to cover current liabilities with quick assets, exhibits a gradual decline across the periods. Starting at a robust 1.56 in August 2020, the ratio decreases to around 1.10 by February 2025, indicating a diminishing short-term liquidity cushion. Although minor improvements occur in some quarters, the persistent downtrend suggests increasing pressure on immediate liquidity solvency.

In summary, while total quick assets initially increase and then experience volatility, current liabilities consistently rise, contributing to a gradual erosion of the quick ratio. This trend implies a relative tightening of liquidity, underlining the need for careful monitoring of liquid asset levels against growing short-term obligations to maintain financial stability.

The data reveals several important trends regarding the liquidity and short-term financial position over the observed periods.

Total Cash Assets

Total cash assets exhibit a fluctuating pattern over the periods. Initially, there is an increase from 6,954 million USD to a peak around 8,856 million USD early on, followed by multiple decreases and recoveries. Notably, there is a significant decline during late 2022 to early 2023, with values falling below 5,000 million USD at the lowest point, before experiencing some recovery in subsequent quarters. Overall, total cash assets do not demonstrate consistent growth, indicating volatility in liquid resources.

Current Liabilities

Current liabilities show a general upward trend throughout the periods. Starting from approximately 11,195 million USD, current liabilities increase steadily, reaching over 16,000 million USD by late 2025. The continuous rise in liabilities suggests increasing short-term obligations that the entity must address, which could place pressure on liquidity if not matched by equivalent asset growth.

Cash Ratio

The cash ratio, representing the ability to cover current liabilities with cash assets, declines overall from an initial 0.62 to a lower level in later periods. Early periods show a ratio fluctuating around 0.5 to 0.7, but a marked decrease occurs starting in late 2022, bottoming out near 0.33, indicating reduced liquidity coverage. Minor recoveries are observed subsequently, but the ratio remains below initial values, suggesting relatively weaker short-term financial safety margins as obligations increase.

In summary, while cash assets fluctuate, they do not keep pace with the steadily rising current liabilities, resulting in a declining cash ratio trend. This pattern may highlight increased short-term financial risk and signifies the importance of managing liquidity carefully moving forward.