Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
FedEx Corp., solvency ratios
Based on: 10-K (reporting date: 2026-05-31), 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).
The solvency profile demonstrates a period of strategic deleveraging between 2021 and 2025, followed by a moderate increase in leverage by 2026. While the company successfully reduced several key debt ratios over the first five years of the period, a diverging trend is observed in debt servicing capacity, where coverage ratios have steadily declined.
- Capital Structure and Leverage
- A downward trend in the debt to equity ratio is observed from 0.86 in 2021 to a low of 0.73 in 2024 and 2025, before returning to 0.81 in 2026. The debt to capital ratio followed a similar trajectory, decreasing from 0.46 in 2021 to 0.42 in 2025. When operating lease liabilities are included, the leverage profile is significantly higher; the debt to equity ratio (including leases) decreased from 1.51 in 2021 to 1.33 in 2025, before rising slightly to 1.36 in 2026.
- Asset-Based Solvency and Financial Leverage
- Debt to assets remained stable, fluctuating minimally between 0.23 and 0.26. The inclusion of operating lease liabilities maintains this stability, with the ratio hovering around 0.43 throughout the period. Financial leverage showed a consistent gradual decline from 3.43 in 2021 to 3.13 in 2026, indicating a slight reduction in the use of debt to finance total assets.
- Debt Servicing and Coverage
- A consistent weakening in the ability to service debt is evident. The interest coverage ratio declined from 9.42 in 2021 to 6.97 in 2026, representing a notable reduction in the margin of safety for interest payments. Similarly, the fixed charge coverage ratio decreased from 2.83 in 2021 to 2.29 in 2026, suggesting a diminished capacity to meet all fixed financial obligations relative to generated earnings.
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Debt Ratios
Coverage Ratios
Debt to Equity
FedEx Corp., debt to equity calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,676) | 1,428) | 68) | 126) | 82) | 146) | |
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | |
| Long-term debt, less current portion | 23,293) | 19,151) | 20,135) | 20,453) | 20,182) | 20,733) | |
| Total debt | 25,714) | 20,579) | 20,203) | 20,579) | 20,264) | 20,879) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.81 | 0.73 | 0.73 | 0.79 | 0.81 | 0.86 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.40 | 0.45 | 0.89 | 1.32 | 0.66 | |
| Union Pacific Corp. | — | 1.72 | 1.85 | 2.20 | 2.74 | 2.10 | |
| United Airlines Holdings Inc. | — | 1.64 | 2.26 | 3.40 | 4.68 | 7.03 | |
| United Parcel Service Inc. | — | 1.49 | 1.27 | 1.29 | 0.99 | 1.54 | |
| Debt to Equity, Sector | |||||||
| Transportation | — | 1.07 | 1.16 | 1.49 | 1.62 | 1.63 | |
| Debt to Equity, Industry | |||||||
| Industrials | — | 1.31 | 1.39 | 1.52 | 1.42 | 1.37 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Debt to equity = Total debt ÷ Common stockholders’ investment
= 25,714 ÷ 31,647 = 0.81
2 Click competitor name to see calculations.
The analysis of the solvency metrics reveals a period of consistent deleveraging and equity accumulation followed by a significant expansion of the balance sheet in the final period.
- Equity Growth and Leverage Reduction (2021–2025)
- From May 31, 2021, to May 31, 2025, a steady increase in common stockholders' investment is observed, rising from 24,168 million US$ to 28,074 million US$. During this interval, total debt remained relatively stagnant, fluctuating within a narrow range between 20,203 million US$ and 20,879 million US$. This combination of growing equity and stable debt levels led to a progressive decline in the debt to equity ratio, which decreased from 0.86 in 2021 to a low of 0.73 by 2025, indicating an improvement in the company's solvency position and a reduced reliance on external borrowing.
- Capital Structure Expansion (2026)
- A sharp increase in both debt and equity is evident as of May 31, 2026. Total debt rose significantly to 25,714 million US$, while common stockholders' investment increased to 31,647 million US$. Although equity continued its upward trend, the more aggressive growth in total debt caused the debt to equity ratio to reverse its prior downward trend, increasing to 0.81. This suggests a strategic shift toward higher leverage to fund capital expenditures or operational growth.
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Debt to Equity (including Operating Lease Liability)
FedEx Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,676) | 1,428) | 68) | 126) | 82) | 146) | |
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | |
| Long-term debt, less current portion | 23,293) | 19,151) | 20,135) | 20,453) | 20,182) | 20,733) | |
| Total debt | 25,714) | 20,579) | 20,203) | 20,579) | 20,264) | 20,879) | |
| Current portion of operating lease liabilities | 2,680) | 2,565) | 2,463) | 2,390) | 2,443) | 2,208) | |
| Operating lease liabilities, less current portion | 14,549) | 14,272) | 15,053) | 15,363) | 14,487) | 13,375) | |
| Total debt (including operating lease liability) | 42,943) | 37,416) | 37,719) | 38,332) | 37,194) | 36,462) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.36 | 1.33 | 1.37 | 1.47 | 1.49 | 1.51 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.45 | 0.53 | 1.04 | 1.58 | 0.79 | |
| Union Pacific Corp. | — | 1.78 | 1.92 | 2.31 | 2.87 | 2.22 | |
| United Airlines Holdings Inc. | — | 2.03 | 2.65 | 3.94 | 5.41 | 8.17 | |
| United Parcel Service Inc. | — | 1.76 | 1.53 | 1.54 | 1.19 | 1.79 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Transportation | — | 1.35 | 1.48 | 1.88 | 2.03 | 2.02 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Industrials | — | 1.46 | 1.55 | 1.71 | 1.59 | 1.54 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Common stockholders’ investment
= 42,943 ÷ 31,647 = 1.36
2 Click competitor name to see calculations.
The solvency profile demonstrates a general improvement in leverage from 2021 through 2025, followed by a marginal increase in 2026. The overall trajectory indicates a strategic shift toward a stronger equity base relative to total liabilities over the analyzed period.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, exhibited a gradual increase from 2021 to 2023, peaking at 38,332 million US$. A period of contraction followed in 2024 and 2025, with values decreasing to 37,416 million US$. However, a significant increase is observed for 2026, where debt rises to 42,943 million US$.
- Common Stockholders' Investment
- A consistent upward trajectory is observed in the equity base. Common stockholders' investment grew steadily every year, rising from 24,168 million US$ in 2021 to 31,647 million US$ by 2026. This monotonic growth reflects a continuous strengthening of the company's internal funding and capital position.
- Debt to Equity Ratio Dynamics
- The debt to equity ratio declined consistently from 1.51 in 2021 to a low of 1.33 in 2025. This deleveraging effect is attributed to the simultaneous growth of equity and the stabilization of total debt. While the ratio increases slightly to 1.36 in 2026, the substantial increase in equity during that period offsets a significant portion of the rising debt load, keeping the final ratio considerably lower than the initial 2021 level.
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Debt to Capital
FedEx Corp., debt to capital calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,676) | 1,428) | 68) | 126) | 82) | 146) | |
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | |
| Long-term debt, less current portion | 23,293) | 19,151) | 20,135) | 20,453) | 20,182) | 20,733) | |
| Total debt | 25,714) | 20,579) | 20,203) | 20,579) | 20,264) | 20,879) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Total capital | 57,361) | 48,653) | 47,785) | 46,667) | 45,203) | 45,047) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.45 | 0.42 | 0.42 | 0.44 | 0.45 | 0.46 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.28 | 0.31 | 0.47 | 0.57 | 0.40 | |
| Union Pacific Corp. | — | 0.63 | 0.65 | 0.69 | 0.73 | 0.68 | |
| United Airlines Holdings Inc. | — | 0.62 | 0.69 | 0.77 | 0.82 | 0.88 | |
| United Parcel Service Inc. | — | 0.60 | 0.56 | 0.56 | 0.50 | 0.61 | |
| Debt to Capital, Sector | |||||||
| Transportation | — | 0.52 | 0.54 | 0.60 | 0.62 | 0.62 | |
| Debt to Capital, Industry | |||||||
| Industrials | — | 0.57 | 0.58 | 0.60 | 0.59 | 0.58 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 25,714 ÷ 57,361 = 0.45
2 Click competitor name to see calculations.
The solvency profile reflects a period of relative stability followed by a significant expansion in the final period. From 2021 to 2025, the capital structure exhibited a gradual shift toward lower leverage, before an uptick in both debt and capital occurred in 2026.
- Total Debt Trends
- Debt levels remained remarkably consistent between 2021 and 2025, fluctuating within a narrow range between approximately $20.2 billion and $20.9 billion. However, a sharp increase is observed in 2026, where total debt rose to $25.7 billion, representing a substantial increase relative to the preceding five-year average.
- Total Capital Evolution
- Total capital demonstrated a consistent upward trajectory throughout the analyzed period. Starting at $45.0 billion in 2021, the figure grew steadily to $48.7 billion by 2025, before experiencing a significant surge to $57.4 billion in 2026.
- Debt to Capital Ratio Analysis
- The debt to capital ratio experienced a steady contraction from 0.46 in 2021 to a low of 0.42 in 2024 and 2025, indicating an improvement in the solvency position relative to total capital. This downward trend reversed in 2026, as the ratio increased to 0.45, correlating with the simultaneous expansion of the debt and capital base.
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Debt to Capital (including Operating Lease Liability)
FedEx Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,676) | 1,428) | 68) | 126) | 82) | 146) | |
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | |
| Long-term debt, less current portion | 23,293) | 19,151) | 20,135) | 20,453) | 20,182) | 20,733) | |
| Total debt | 25,714) | 20,579) | 20,203) | 20,579) | 20,264) | 20,879) | |
| Current portion of operating lease liabilities | 2,680) | 2,565) | 2,463) | 2,390) | 2,443) | 2,208) | |
| Operating lease liabilities, less current portion | 14,549) | 14,272) | 15,053) | 15,363) | 14,487) | 13,375) | |
| Total debt (including operating lease liability) | 42,943) | 37,416) | 37,719) | 38,332) | 37,194) | 36,462) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Total capital (including operating lease liability) | 74,590) | 65,490) | 65,301) | 64,420) | 62,133) | 60,630) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.58 | 0.57 | 0.58 | 0.60 | 0.60 | 0.60 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.31 | 0.35 | 0.51 | 0.61 | 0.44 | |
| Union Pacific Corp. | — | 0.64 | 0.66 | 0.70 | 0.74 | 0.69 | |
| United Airlines Holdings Inc. | — | 0.67 | 0.73 | 0.80 | 0.84 | 0.89 | |
| United Parcel Service Inc. | — | 0.64 | 0.61 | 0.61 | 0.54 | 0.64 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Transportation | — | 0.57 | 0.60 | 0.65 | 0.67 | 0.67 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Industrials | — | 0.59 | 0.61 | 0.63 | 0.61 | 0.61 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 42,943 ÷ 74,590 = 0.58
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a period of relative stability in its capital structure from 2021 through 2026, characterized by a balanced relationship between debt obligations and total capital.
- Total Debt Evolution
- Total debt, inclusive of operating lease liabilities, exhibited a gradual increase from US$ 36,462 million in 2021 to US$ 38,332 million in 2023. A slight contraction followed between 2024 and 2025, with debt levels receding to US$ 37,416 million. However, a significant escalation occurred by May 31, 2026, where total debt rose to US$ 42,943 million, marking a substantial increase in nominal leverage during the final period.
- Total Capital Expansion
- Total capital grew consistently throughout the observed period, rising from US$ 60,630 million in 2021 to US$ 65,490 million in 2025. A sharp increase was noted in 2026, with total capital reaching US$ 74,590 million. This consistent expansion indicates a growing overall funding base used to support the organization's assets and operations.
- Debt-to-Capital Ratio Dynamics
- The debt-to-capital ratio remained remarkably stable despite the fluctuations in absolute dollar amounts. The ratio held constant at 0.60 from 2021 through 2023, followed by a marginal decline to 0.57 by 2025, suggesting a slight improvement in the solvency position. By May 31, 2026, the ratio adjusted slightly to 0.58. The maintenance of the ratio within a tight range of 0.57 to 0.60 indicates that the organization has successfully scaled its capital base in proportion to its debt accumulation, keeping the overall risk profile consistent.
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Debt to Assets
FedEx Corp., debt to assets calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,676) | 1,428) | 68) | 126) | 82) | 146) | |
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | |
| Long-term debt, less current portion | 23,293) | 19,151) | 20,135) | 20,453) | 20,182) | 20,733) | |
| Total debt | 25,714) | 20,579) | 20,203) | 20,579) | 20,264) | 20,879) | |
| Total assets | 98,937) | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.26 | 0.23 | 0.23 | 0.24 | 0.24 | 0.25 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.17 | 0.19 | 0.26 | 0.30 | 0.25 | |
| Union Pacific Corp. | — | 0.46 | 0.46 | 0.49 | 0.51 | 0.47 | |
| United Airlines Holdings Inc. | — | 0.33 | 0.39 | 0.45 | 0.48 | 0.52 | |
| United Parcel Service Inc. | — | 0.33 | 0.30 | 0.31 | 0.28 | 0.32 | |
| Debt to Assets, Sector | |||||||
| Transportation | — | 0.30 | 0.32 | 0.35 | 0.36 | 0.36 | |
| Debt to Assets, Industry | |||||||
| Industrials | — | 0.30 | 0.31 | 0.31 | 0.31 | 0.30 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 25,714 ÷ 98,937 = 0.26
2 Click competitor name to see calculations.
The solvency profile from May 31, 2021, through May 31, 2025, reflects a period of stability and slight deleveraging, followed by a notable expansion in both debt and asset levels by May 31, 2026. For the majority of the observed period, the company maintained a conservative approach to its capital structure, keeping total debt relatively flat while assets grew steadily.
- Total Debt Trends
- Between May 31, 2021, and May 31, 2025, total debt remained remarkably stable, fluctuating within a narrow range between 20,203 million and 20,879 million US dollars. However, a significant increase is observed by May 31, 2026, where total debt rose to 25,714 million US dollars, representing a substantial uptick in borrowed capital compared to the previous five years.
- Total Asset Growth
- Assets exhibited a consistent upward trajectory from 82,777 million US dollars in 2021 to 87,627 million US dollars in 2025. This growth accelerated sharply in the final period, reaching 98,937 million US dollars by May 31, 2026, suggesting significant capital investment or acquisition activity.
- Debt to Assets Ratio Analysis
- The debt to assets ratio showed a gradual decline from 0.25 in 2021 to a low of 0.23 in 2024 and 2025, indicating an improvement in solvency and a reduction in the proportion of assets financed by debt. This trend was reversed by May 31, 2026, as the ratio increased to 0.26. This peak indicates that the increase in total debt outpaced the growth in total assets during the final year, resulting in a higher reliance on leverage to fund the expanded asset base.
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Debt to Assets (including Operating Lease Liability)
FedEx Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,676) | 1,428) | 68) | 126) | 82) | 146) | |
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | |
| Long-term debt, less current portion | 23,293) | 19,151) | 20,135) | 20,453) | 20,182) | 20,733) | |
| Total debt | 25,714) | 20,579) | 20,203) | 20,579) | 20,264) | 20,879) | |
| Current portion of operating lease liabilities | 2,680) | 2,565) | 2,463) | 2,390) | 2,443) | 2,208) | |
| Operating lease liabilities, less current portion | 14,549) | 14,272) | 15,053) | 15,363) | 14,487) | 13,375) | |
| Total debt (including operating lease liability) | 42,943) | 37,416) | 37,719) | 38,332) | 37,194) | 36,462) | |
| Total assets | 98,937) | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.43 | 0.43 | 0.43 | 0.44 | 0.43 | 0.44 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.20 | 0.22 | 0.30 | 0.36 | 0.29 | |
| Union Pacific Corp. | — | 0.47 | 0.48 | 0.51 | 0.53 | 0.50 | |
| United Airlines Holdings Inc. | — | 0.41 | 0.45 | 0.52 | 0.55 | 0.60 | |
| United Parcel Service Inc. | — | 0.39 | 0.37 | 0.38 | 0.33 | 0.37 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Transportation | — | 0.39 | 0.40 | 0.44 | 0.45 | 0.45 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Industrials | — | 0.34 | 0.35 | 0.35 | 0.34 | 0.34 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 42,943 ÷ 98,937 = 0.43
2 Click competitor name to see calculations.
The solvency profile exhibits a high degree of stability over the analyzed six-year period. Despite fluctuations in the absolute values of liabilities and assets, the proportion of assets financed through debt remains nearly constant, indicating a disciplined approach to leverage management and capital structure.
- Debt to Assets Ratio Stability
- The debt to assets ratio, which incorporates operating lease liabilities, demonstrates minimal volatility, oscillating strictly between 0.43 and 0.44. This consistency suggests that the organization maintains a strategic target for its leverage ratio, ensuring that debt levels scale proportionally with the growth of the asset base.
- Total Debt Trends
- Total debt experienced a gradual increase from May 31, 2021, to May 31, 2023, rising from 36,462 million to 38,332 million. This was followed by a period of marginal deleveraging through May 31, 2025, where debt declined to 37,416 million. A significant expansion is observed by May 31, 2026, with total debt increasing to 42,943 million, representing a substantial uptick in borrowed capital and lease obligations.
- Asset Base Expansion
- Total assets showed a steady upward trajectory from 82,777 million in 2021 to 87,143 million in 2023. Following a period of relative stagnation between 2024 and 2025, a sharp increase is recorded by May 31, 2026, with total assets reaching 98,937 million. The simultaneous increase in both assets and debt in the final period confirms that the expansion of the balance sheet was funded proportionally by debt, thereby preserving the constant 0.43 ratio.
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Financial Leverage
FedEx Corp., financial leverage calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 98,937) | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.13 | 3.12 | 3.15 | 3.34 | 3.45 | 3.43 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Uber Technologies Inc. | — | 2.29 | 2.38 | 3.44 | 4.37 | 2.68 | |
| Union Pacific Corp. | — | 3.77 | 4.01 | 4.54 | 5.38 | 4.49 | |
| United Airlines Holdings Inc. | — | 5.00 | 5.84 | 7.63 | 9.77 | 13.56 | |
| United Parcel Service Inc. | — | 4.50 | 4.19 | 4.09 | 3.59 | 4.87 | |
| Financial Leverage, Sector | |||||||
| Transportation | — | 3.51 | 3.67 | 4.25 | 4.53 | 4.48 | |
| Financial Leverage, Industry | |||||||
| Industrials | — | 4.34 | 4.49 | 4.94 | 4.65 | 4.52 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Financial leverage = Total assets ÷ Common stockholders’ investment
= 98,937 ÷ 31,647 = 3.13
2 Click competitor name to see calculations.
An analysis of the solvency metrics from May 31, 2021, through May 31, 2026, reveals a strategic shift toward a more conservative capital structure. The overarching trend is characterized by a steady expansion of the equity base and a corresponding reduction in financial leverage, indicating a decrease in the company's reliance on borrowed funds to finance its assets.
- Asset Accumulation Trends
- Total assets demonstrated a consistent upward trajectory, increasing from 82,777 million US$ in 2021 to 98,937 million US$ in 2026. While growth remained relatively stable between 2023 and 2025, a significant acceleration in asset expansion occurred in the final fiscal year, with an increase of approximately 11,310 million US$.
- Equity Growth and Stability
- Common stockholders' investment experienced uninterrupted annual growth throughout the period. Starting at 24,168 million US$ in 2021, equity rose to 31,647 million US$ by 2026. This consistent increase in the equity cushion suggests a strengthening of the balance sheet and an enhanced capacity to absorb financial shocks.
- Financial Leverage Dynamics
- The financial leverage ratio peaked at 3.45 in 2022 before initiating a steady decline to 3.12 by 2025. The ratio remained nearly flat in 2026, closing at 3.13. The transition from a leverage ratio of 3.43 in 2021 to 3.13 in 2026 signifies a reduction in the multiplier effect of debt, resulting in a lower risk profile regarding solvency and long-term financial obligations.
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Interest Coverage
FedEx Corp., interest coverage calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,433) | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | |
| Add: Income tax expense | 1,360) | 1,349) | 1,505) | 1,391) | 1,070) | 1,443) | |
| Add: Interest expense | 970) | 789) | 745) | 694) | 689) | 793) | |
| Earnings before interest and tax (EBIT) | 6,763) | 6,230) | 6,581) | 6,057) | 5,585) | 7,467) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 6.97 | 7.90 | 8.83 | 8.73 | 8.11 | 9.42 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Uber Technologies Inc. | — | 14.06 | 8.81 | 4.74 | -15.49 | -1.20 | |
| Union Pacific Corp. | — | 8.00 | 7.93 | 7.14 | 8.14 | 8.33 | |
| United Airlines Holdings Inc. | — | 4.69 | 3.97 | 2.91 | 1.59 | -0.62 | |
| United Parcel Service Inc. | — | 8.04 | 9.59 | 11.92 | 22.06 | 24.91 | |
| Interest Coverage, Sector | |||||||
| Transportation | — | 7.74 | 7.31 | 6.34 | 5.17 | 6.98 | |
| Interest Coverage, Industry | |||||||
| Industrials | — | 7.07 | 5.79 | 6.64 | 4.98 | 5.14 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,763 ÷ 970 = 6.97
2 Click competitor name to see calculations.
An analysis of solvency metrics indicates a gradual compression of the margin available to cover interest obligations over the six-year period ending May 31, 2026. While the capacity to service debt remains intact, the overall trend reflects increasing financial pressure resulting from rising interest costs and fluctuating operating performance.
- Earnings Before Interest and Tax (EBIT)
- Operating earnings exhibited significant volatility, starting at 7,467 million USD in 2021 and dropping sharply to 5,585 million USD in 2022. A recovery phase followed, with earnings rising to 6,581 million USD by 2024. After a slight retraction to 6,230 million USD in 2025, EBIT reached 6,763 million USD by 2026, suggesting a stabilization of operating profitability at a level below the 2021 peak.
- Interest Expense
- Interest costs remained relatively stable between 2021 and 2023, ranging from 689 million USD to 793 million USD. However, a consistent upward trend emerged starting in 2024, with expenses increasing to 789 million USD in 2025 and rising sharply to 970 million USD by 2026. This acceleration suggests either an increase in the total debt load or a rise in the average cost of borrowing.
- Interest Coverage Ratio
- The interest coverage ratio demonstrates a net decline from 9.42 in 2021 to 6.97 in 2026. Although the ratio showed temporary resilience between 2022 and 2024, reaching 8.83, the subsequent two years experienced a marked deterioration. This downward trajectory is primarily driven by the acceleration of interest expenses outpacing the growth in operating earnings toward the end of the analyzed period.
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Fixed Charge Coverage
FedEx Corp., fixed charge coverage calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,433) | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | |
| Add: Income tax expense | 1,360) | 1,349) | 1,505) | 1,391) | 1,070) | 1,443) | |
| Add: Interest expense | 970) | 789) | 745) | 694) | 689) | 793) | |
| Earnings before interest and tax (EBIT) | 6,763) | 6,230) | 6,581) | 6,057) | 5,585) | 7,467) | |
| Add: Operating lease cost | 3,518) | 3,421) | 3,326) | 3,300) | 3,100) | 2,848) | |
| Earnings before fixed charges and tax | 10,281) | 9,651) | 9,907) | 9,357) | 8,685) | 10,315) | |
| Interest expense | 970) | 789) | 745) | 694) | 689) | 793) | |
| Operating lease cost | 3,518) | 3,421) | 3,326) | 3,300) | 3,100) | 2,848) | |
| Fixed charges | 4,488) | 4,210) | 4,071) | 3,994) | 3,789) | 3,641) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 2.29 | 2.29 | 2.43 | 2.34 | 2.29 | 2.83 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Uber Technologies Inc. | — | 8.89 | 6.00 | 3.48 | -9.72 | -0.36 | |
| Union Pacific Corp. | — | 6.68 | 6.47 | 5.82 | 6.64 | 6.81 | |
| United Airlines Holdings Inc. | — | 3.09 | 2.85 | 2.25 | 1.38 | -0.01 | |
| United Parcel Service Inc. | — | 4.64 | 5.19 | 6.21 | 11.30 | 12.66 | |
| Fixed Charge Coverage, Sector | |||||||
| Transportation | — | 4.01 | 3.88 | 3.54 | 2.98 | 3.86 | |
| Fixed Charge Coverage, Industry | |||||||
| Industrials | — | 4.66 | 3.96 | 4.32 | 3.30 | 3.44 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 2026 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 10,281 ÷ 4,488 = 2.29
2 Click competitor name to see calculations.
An analysis of the solvency profile reveals a tightening of the fixed charge coverage over the period from 2021 to 2026. While earnings before fixed charges and tax have remained substantial, the consistent rise in fixed obligations has exerted downward pressure on the coverage ratio, leading to a lower margin of safety compared to the 2021 baseline.
- Earnings Before Fixed Charges and Tax
- Earnings exhibited volatility during the observed period, beginning at 10,315 million US$ in 2021 and declining to a low of 8,685 million US$ in 2022. A recovery trend followed, with earnings increasing through 2024 to 9,907 million US$, followed by a slight contraction in 2025, and a projected return to 10,281 million US$ by 2026.
- Fixed Charge Obligations
- A steady and uninterrupted upward trend is observed in fixed charges. Obligations grew from 3,641 million US$ in 2021 to 4,488 million US$ by 2026. This linear increase suggests a growing commitment to fixed costs or debt service requirements over the six-year duration.
- Fixed Charge Coverage Ratio
- The coverage ratio decreased significantly from 2.83 in 2021 to 2.29 in 2022, reflecting the combined impact of falling earnings and rising fixed charges. Although a marginal recovery was noted between 2023 and 2024, peaking at 2.43, the ratio reverted to 2.29 in 2025 and remained stagnant at that level through 2026. This indicates that the growth in earnings has been insufficient to offset the growth in fixed charges, resulting in a stabilized but reduced capacity to cover fixed obligations.
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