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: 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), 10-K (reporting date: 2020-05-31).
- Current Ratio
- The current ratio exhibits a consistent downward trend from 1.58 in May 2020 to 1.19 in May 2025. This gradual decline over the six-year period indicates a reduction in the company's short-term liquidity, suggesting that current assets are relatively decreasing compared to current liabilities. Despite the decrease, the ratio remains above 1.0 throughout the period, implying that current assets are still sufficient to cover current liabilities, though the margin has narrowed.
- Quick Ratio
- The quick ratio also shows a steady decrease from 1.45 in May 2020 to 1.09 in May 2025. This ratio, which excludes inventory from current assets, mirrors the trend seen in the current ratio, indicating a declining ability to cover short-term obligations with the most liquid assets. The consistent decline points to reducing liquidity excluding inventory but remains above 1.0 in all years except the final year where it approaches that level.
- Cash Ratio
- The cash ratio fluctuates mildly within the period but follows a general decreasing trajectory from 0.47 in May 2020 to 0.36 in May 2025. This ratio, the most conservative liquidity measure as it considers only cash and cash equivalents, reflects a declining cash buffer relative to current liabilities. The ratio experiences a slight increase from 0.47 in 2020 to 0.52 in 2021, then a steady decrease thereafter. By 2025, the cash ratio indicates a reduced cushion of cash funds available for immediate liabilities, which may signal tighter cash management or increased cash utilization.
Current Ratio
FedEx Corp., current ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 18,386) | 18,207) | 18,610) | 20,365) | 20,580) | 16,383) | |
| Current liabilities | 15,411) | 13,355) | 13,586) | 14,274) | 13,660) | 10,344) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.19 | 1.36 | 1.37 | 1.43 | 1.51 | 1.58 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Uber Technologies Inc. | — | 1.07 | 1.19 | 1.04 | 0.98 | 1.44 | |
| Union Pacific Corp. | — | 0.77 | 0.81 | 0.72 | 0.62 | 1.01 | |
| United Airlines Holdings Inc. | — | 0.81 | 0.83 | 1.00 | 1.19 | 1.16 | |
| United Parcel Service Inc. | — | 1.17 | 1.10 | 1.22 | 1.42 | 1.19 | |
| Current Ratio, Sector | |||||||
| Transportation | — | 1.04 | 1.06 | 1.14 | 1.24 | 1.28 | |
| Current Ratio, Industry | |||||||
| Industrials | — | 1.19 | 1.16 | 1.20 | 1.29 | 1.41 | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 18,386 ÷ 15,411 = 1.19
2 Click competitor name to see calculations.
- Current assets
- The value of current assets initially increased from 16,383 million USD in 2020 to a peak of 20,580 million USD in 2021. However, since then, there has been a gradual decline, reaching 18,386 million USD by 2025. Despite the downward movement after 2021, the current assets in 2025 remain above the 2020 level, indicating some retention of liquidity.
- Current liabilities
- Current liabilities have shown a consistent upward trend over the observed period. Starting at 10,344 million USD in 2020, they increased steadily each year, reaching 15,411 million USD in 2025. This continuous rise suggests growing short-term obligations which may impact liquidity pressure on the company.
- Current ratio
- The current ratio, a key indicator of liquidity, exhibits a declining trend throughout the period. Beginning at 1.58 in 2020, the ratio steadily decreased to 1.19 by 2025. This indicates that the company's current assets relative to current liabilities are diminishing, signaling a weakening short-term financial position and reduced cushion to cover immediate liabilities.
- Overall Analysis
- While current assets showed an initial increase, their reduction alongside steadily rising current liabilities has caused a marked decline in the current ratio. This downward trend of the current ratio below 1.5 and nearing 1.2 by 2025 may reflect increasing liquidity risk, suggesting the company should monitor working capital management carefully to maintain adequate short-term financial health.
Quick Ratio
FedEx Corp., quick ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,502) | 6,501) | 6,856) | 6,897) | 7,087) | 4,881) | |
| Receivables, less allowances | 11,368) | 10,087) | 10,188) | 11,863) | 12,069) | 10,102) | |
| Total quick assets | 16,870) | 16,588) | 17,044) | 18,760) | 19,156) | 14,983) | |
| Current liabilities | 15,411) | 13,355) | 13,586) | 14,274) | 13,660) | 10,344) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.09 | 1.24 | 1.25 | 1.31 | 1.40 | 1.45 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.95 | 1.02 | 0.88 | 0.82 | 1.19 | |
| Union Pacific Corp. | — | 0.55 | 0.61 | 0.52 | 0.47 | 0.79 | |
| United Airlines Holdings Inc. | — | 0.71 | 0.73 | 0.91 | 1.10 | 1.02 | |
| United Parcel Service Inc. | — | 1.05 | 0.98 | 1.11 | 1.32 | 1.00 | |
| Quick Ratio, Sector | |||||||
| Transportation | — | 0.92 | 0.93 | 1.02 | 1.13 | 1.10 | |
| Quick Ratio, Industry | |||||||
| Industrials | — | 0.69 | 0.66 | 0.72 | 0.80 | 0.87 | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,870 ÷ 15,411 = 1.09
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets exhibited an overall declining trend from May 31, 2021, to May 31, 2024, decreasing from 19,156 million USD to 16,588 million USD. After this period of decline, a slight increase is observed in the latest period, rising to 16,870 million USD by May 31, 2025. Initially, there was a growth from 14,983 million USD in May 31, 2020, to 19,156 million USD the following year, indicating a peak in 2021 before the subsequent downward movement.
- Current liabilities
- Current liabilities showed a rising trend over the years with some fluctuations. Starting at 10,344 million USD in May 31, 2020, they increased steadily to 13,660 million USD in 2021 and continued to rise to 14,274 million USD in 2022. A slight decrease occurred in 2023 and 2024, with values of 13,586 million USD and 13,355 million USD respectively. However, the most recent period, May 31, 2025, saw a significant increase, bringing current liabilities to 15,411 million USD, the highest in the series.
- Quick ratio
- The quick ratio demonstrated a consistent downward trajectory from 1.45 in May 31, 2020, to 1.09 in May 31, 2025. This steady decline suggests a decreasing ability to cover current liabilities with quick assets. The ratio dropped gradually each year, indicating worsening short-term liquidity despite some fluctuations in the absolute values of quick assets and current liabilities.
- Summary
- The data reflects a tightening liquidity position over the observed years. Even though total quick assets initially increased before declining, current liabilities have generally trended upward, culminating in the lowest quick ratio in the most recent period. This pattern indicates that while quick assets regained some ground in the final year, the company's ability to meet short-term obligations from its most liquid assets has weakened. The significant increase in current liabilities in the last year particularly contributes to this reduced liquidity cushion.
Cash Ratio
FedEx Corp., cash ratio calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,502) | 6,501) | 6,856) | 6,897) | 7,087) | 4,881) | |
| Total cash assets | 5,502) | 6,501) | 6,856) | 6,897) | 7,087) | 4,881) | |
| Current liabilities | 15,411) | 13,355) | 13,586) | 14,274) | 13,660) | 10,344) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.36 | 0.49 | 0.50 | 0.48 | 0.52 | 0.47 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.66 | 0.66 | 0.56 | 0.55 | 1.03 | |
| Union Pacific Corp. | — | 0.19 | 0.21 | 0.18 | 0.17 | 0.43 | |
| United Airlines Holdings Inc. | — | 0.62 | 0.65 | 0.82 | 1.01 | 0.92 | |
| United Parcel Service Inc. | — | 0.38 | 0.34 | 0.42 | 0.60 | 0.37 | |
| Cash Ratio, Sector | |||||||
| Transportation | — | 0.51 | 0.51 | 0.55 | 0.65 | 0.62 | |
| Cash Ratio, Industry | |||||||
| Industrials | — | 0.31 | 0.29 | 0.32 | 0.39 | 0.47 | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,502 ÷ 15,411 = 0.36
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a fluctuating but overall decreasing trend over the six-year period. Starting from 4,881 million USD in 2020, the value increased significantly to 7,087 million USD in 2021. After a slight decline to 6,897 million USD in 2022 and a near stabilization in 2023 at 6,856 million USD, the amount sharply declined in the subsequent years, reaching 6,501 million USD in 2024 and further dropping to 5,502 million USD in 2025.
- Current Liabilities
- Current liabilities demonstrate a generally upward trajectory throughout the analyzed period. Beginning at 10,344 million USD in 2020, liabilities rose substantially to 13,660 million USD in 2021. The increase continued to 14,274 million USD in 2022, followed by a mild decrease in 2023 to 13,586 million USD. However, the amount slightly decreased in 2024 to 13,355 million USD before rising sharply again to reach 15,411 million USD in 2025, the highest level within the timeframe.
- Cash Ratio
- The cash ratio, which assesses liquidity by comparing cash assets to current liabilities, reflects variations consistent with the trends in cash assets and liabilities. The ratio improved from 0.47 in 2020 to a peak of 0.52 in 2021, indicating strengthened liquidity. It then decreased slightly to 0.48 in 2022 but returned to around 0.50 in 2023. The ratio remained relatively stable at 0.49 in 2024 before a pronounced decline to 0.36 in 2025, signaling a notable reduction in liquidity relative to current liabilities at the end of the period.
- Summary
- Over the analyzed years, the company experienced fluctuating liquidity levels characterized by an initial increase in cash assets and liquidity ratios, followed by decreases in later years. Meanwhile, current liabilities generally trended upward, reaching their peak in the final year. The combination of decreasing cash assets and increasing current liabilities resulted in a marked decline in the cash ratio by 2025, potentially indicating tighter liquidity and a less favorable short-term financial position.