FedEx Corp. (NYSE:FDX)

The analysis of the quarterly financial leverage and debt-related ratios over the examined periods reveals several key trends and patterns.

Debt to Equity Ratio

This ratio remained relatively stable around 1.03 during the initial quarters through early 2020, before peaking at 1.20 in the quarters ending May and August 2020. From late 2020 onward, a consistent downward trend is evident, with the ratio declining steadily to approximately 0.73 by May 2025. This suggests a gradual reduction in reliance on equity financing relative to debt over time.

Debt to Equity (Including Operating Lease Liability)

Including operating lease liabilities, this ratio is noticeably higher, starting at 1.81 and increasing to a high of 1.97 in May 2020. Subsequent quarters show a decreasing pattern, stabilizing between 1.33 and 1.58 from May 2022 through May 2025, indicating that lease liabilities represent a material but moderating component of the company's overall leverage.

Debt to Capital Ratio

The debt to capital ratio mirrors the debt to equity ratio's movement, starting around 0.51 and rising to about 0.55 at the height of 2020, before descending steadily to 0.42 by May 2025. The steady decline suggests an improving capital structure with less debt burden relative to the total capital base over the period.

Debt to Capital (Including Operating Lease Liability)

Consistent with the previous metric, including operating lease liabilities causes this ratio to be higher, fluctuating slightly around 0.64 to 0.66 in 2019-2020. Subsequently, it trends downward gradually to about 0.57 by mid-2025. The data implies a sustained yet lessening impact of lease obligations on the overall capitalization.

Debt to Assets Ratio

This ratio begins at approximately 0.27, peaks at around 0.30 during mid-2020, then steadily decreases to about 0.23 by the end of the series. The modest decline indicates reduced leverage against total asset base over time, suggesting asset growth may outpace incremental debt increases or effective deleveraging.

Debt to Assets (Including Operating Lease Liability)

When including operating lease liabilities, the ratio starts near 0.48, peaks around 0.49 in 2020, then shows a very slight decline, stabilizing near 0.43-0.44 through to 2025. This indicates that leasing commitments modestly increase the debt burden relative to assets but that this impact remains fairly constant in later years.

Financial Leverage

Financial leverage measured by the ratio shows a peak during the pandemic-affected periods in 2020, rising from approximately 3.72 to 4.02. Afterward, a downward trend is apparent, declining steadily to about 3.12 by May 2025. This trend reflects a general reduction in leverage and implies improvements in equity base or earnings relative to debt over the monitored period.

Overall, the company’s financial leverage and debt ratios show increases during the early pandemic quarters, indicating heightened borrowing or liabilities in response to the economic climate. Following this peak, all metrics exhibit a gradual and consistent decrease across the subsequent quarters, pointing to ongoing deleveraging efforts, improved capital structure, or asset growth exceeding debt increases. Lease liabilities consistently contribute a significant, though gradually diminishing, component to total leverage. The trends suggest a cautious approach to debt management post-crisis, reinforcing financial stability and potentially enhancing creditworthiness over the long term.

The financial data indicates notable movements in debt and equity over the observed periods, revealing trends in the company's capital structure and leverage position.

Total Debt

The total debt level started at approximately $18.8 billion in August 2019, followed a modest upward trajectory until reaching a peak near $23.4 billion in February 2021. Subsequently, the debt showed a declining trend until mid-2024, dropping to about $20.1 billion, before a slight increase towards May 2025, finishing near $20.6 billion. This pattern suggests a phase of debt accumulation up to early 2021, after which the company gradually reduced its leverage, maintaining a relatively stable debt position in the final periods.

Common Stockholders’ Investment

Common stockholders’ investment exhibited steady growth throughout the timeframe. Beginning at approximately $18.2 billion in August 2019, this metric generally increased over the years with minor fluctuations, reaching about $28.1 billion by May 2025. The steady rise reflects consistent shareholder equity enhancement, potentially driven by retained earnings, additional equity issuance, or asset revaluation, supporting a stronger equity base over time.

Debt to Equity Ratio

The debt to equity ratio demonstrates a clear declining trend, indicating decreasing leverage relative to equity. Initially close to 1.03 in late 2019 and early 2020, the ratio peaked at 1.20 in mid-2020 before descending steadily to around 0.73 by mid-2024 and remaining near this lower level thereafter. This decrease primarily results from the combination of slight debt reductions and more significant growth in stockholders’ equity. This reduction in leverage suggests a strategic shift towards a more conservative capital structure, potentially reducing financial risk and improving balance sheet strength.

Total debt (including operating lease liability)

The total debt showed a gradual increase from August 2019 to February 2021, rising from approximately $32.8 billion to a peak around $38.6 billion. Following this peak, the debt level exhibited minor fluctuations but generally trended slightly downward through May 2025, ending near $37.4 billion. This suggests that while the company initially increased its leverage, it has maintained a relatively stable debt level with some reduction in recent periods.

Common stockholders’ investment

Common stockholders’ investment demonstrated consistent growth over the analyzed period. Starting at about $18.2 billion in August 2019, it rose steadily with minor volatility to reach about $28.1 billion by May 2025. This upward trend indicates an expansion in equity, reflecting either retained earnings accumulation, issuance of new shares, or other equity increases contributing to the company's financial strength.

Debt to equity (including operating lease liability)

The debt to equity ratio initially increased from 1.81 in August 2019 to a high of 1.97 by May 2020, indicating a rise in leverage relative to equity. Subsequently, there was a consistent decline in this ratio through the subsequent years, reaching 1.33 by May 2025. This declining trend suggests improving capital structure with either debt reduction, equity growth, or both, leading to a more balanced and potentially less risky financial leverage position.

The analysis of the quarterly financial data reveals several important trends related to the company's debt levels, capital structure, and leverage ratio over the observed periods.

Total Debt

The total debt exhibited an overall increasing trend from August 31, 2019, through February 28, 2021, rising from approximately $18.8 billion to a peak near $23.4 billion. Following this peak, total debt decreased progressively and notably from May 31, 2021, reaching a lower range around $20.3 billion by August 31, 2024. Despite some minor fluctuations toward the end of the period, total debt stabilized near $20.5 billion, indicating controlled debt management after the initial rise.

Total Capital

Total capital increased steadily during the initial years, growing from about $36.9 billion in August 2019 to nearly $45.4 billion by February 2021. After reaching this relative peak, total capital remained relatively stable with marginal fluctuations, hovering mostly in the $45 billion to $48.7 billion range through May 31, 2025. This suggests steady capital base growth initially, followed by a phase of stabilization.

Debt to Capital Ratio

The debt to capital ratio began at approximately 0.51 in August 2019, increasing to a high of around 0.55 by May 31, 2020, which indicates greater leverage during this timeframe. Subsequently, the ratio declined steadily and consistently, falling to about 0.42 by May 31, 2025. This declining trend implies a reduction in leverage and improved capital structure management, likely reflecting strategic efforts to decrease reliance on debt financing relative to total capital.

In summary, the data presents a phase of increasing debt and leverage up to early 2021, followed by a period of deleveraging and capital stabilization. The company’s debt levels were curtailed while total capital maintained growth, leading to a consistent reduction in the debt to capital ratio. This pattern suggests a focus on strengthening the balance sheet and reducing financial risk over the latter periods.

The data reveals the evolution of debt and capital structure over multiple quarterly periods. Total debt, inclusive of operating lease liabilities, shows a gradual increase from approximately $32.8 billion in August 2019, peaking around $38.3 billion in May 2023, followed by a slight decrease and stabilization near $37 billion towards the later periods.

Total capital, also including operating lease liabilities, exhibits a consistent upward trend from about $50.96 billion in August 2019 to approximately $65.5 billion by May 2025, with intermittent minor fluctuations. This growth in total capital suggests incremental investment or equity accumulation over the analyzed quarters.

The debt-to-capital ratio, which indicates the proportion of debt financing relative to total capital, starts at 0.64 in August 2019 and remains relatively stable around the mid-0.60s until early 2021. From mid-2021 onwards, a noticeable downward trajectory is observed, with the ratio falling from approximately 0.60 to 0.57 by May 2025. This trend implies a gradual reduction in financial leverage, reflecting a relatively lower reliance on debt financing over total capital across recent quarters.

Overall, the analysis points to a moderately deleveraging pattern, with the company incrementally increasing its capital base while maintaining or slightly reducing its debt levels, leading to a more conservative capital structure as time progresses.

The data reveals the financial trends in debt management and asset growth over multiple quarterly periods.

Total Debt

The total debt shows an initial increasing trend from August 2019 through February 2021, rising from approximately 18.8 billion USD to about 23.4 billion USD. This increase peaks in early 2021, followed by a noticeable decline by May 2021. Subsequently, total debt levels fluctuate with slight decreases and increases but generally stabilize around the 20.0 to 20.5 billion USD range from mid-2021 through mid-2025.

Total Assets

Total assets present a steady upward movement from August 2019 to approximately November 2021, increasing from around 68.5 billion USD to about 84.2 billion USD. After this period, assets fluctuate slightly with minor declines and recoveries but overall maintain a level between approximately 85.0 billion USD and 88.0 billion USD through mid-2025. This suggests ongoing asset growth with some periods of consolidation.

Debt to Assets Ratio

The debt to assets ratio starts at 0.27 in August 2019, showing a gradual increase up to 0.30 by May 2020, indicating a higher proportion of debt relative to assets during that period. From mid-2020 onward, the ratio trends downward, reaching and maintaining a consistent range around 0.23 to 0.24 from early 2021 through mid-2025. This declining ratio suggests a reduction in leverage, with assets growing proportionally faster than debt, reflecting improved financial stability and balance sheet strength during the latter periods.

The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the specified periods.

Total Debt (including operating lease liability)

The total debt shows a general increase from August 31, 2019, reaching a peak around November 30, 2020, to February 28, 2021, where figures hovered above 38,000 million US dollars. Subsequent quarters indicate a gradual decline and stabilization with slight fluctuations, ending around 37,416 million US dollars by May 31, 2025. The trend suggests the company initially increased its leverage before moderating its debt levels in the longer term.

Total Assets

Total assets exhibit a steady growth trend from 68,452 million US dollars in August 31, 2019, ascending with minor variations to a peak near 87,627 million US dollars by May 31, 2025. While some quarters indicate small scale declines, the overall asset base has expanded, reflecting growth in the company’s resources and asset accumulation ability over the evaluation period.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio starts at 0.48 in August 2019 and fluctuates slightly but trends downward to approximately 0.43 by the end of the observed periods, notably stabilizing around this level towards the latter quarters. This declining ratio indicates an improvement in the company’s solvency position, with liabilities growing at a slower rate relative to assets, enhancing financial stability and potentially lowering risk exposure.

In summary, the observed financial data depict a period in which the company expanded both its liabilities and assets, with the latter growing at a rate that outpaced debt accumulation. This led to a gradual but consistent improvement in the debt-to-assets ratio, suggesting a strengthening balance sheet and improved leverage management. The company's ability to stabilize its total debt while increasing asset values points toward strategic financial planning aimed at maintaining an optimal capital structure over time.

The analysis of the financial trends indicates that total assets of the entity exhibited a generally upward trajectory over the examined periods. Starting at 68,452 million US dollars in August 2019, total assets increased steadily, reaching a peak of 88,051 million US dollars by February 2024. Some fluctuations occurred afterward, with values slightly declining but remaining above 85,000 million US dollars as of May 2025. This overall growth in assets suggests continued investment and expansion activities.

Common stockholders’ investment showed a consistent increase over time as well. Beginning at 18,166 million US dollars in August 2019, the value grew steadily with minor fluctuations, reaching over 28,000 million US dollars by the end of the period in May 2025. This indicates an enhancement in equity value, potentially due to retained earnings, additional capital contributions, or positive market valuation effects.

Financial leverage, representing the ratio of assets to equity, demonstrated a declining trend. Initially measured at 3.77 in August 2019, the ratio decreased gradually to approximately 3.12 by May 2025. The decline in leverage ratio reflects a relative reduction in financial risk associated with debt levels or a strengthening equity base, pointing toward a more conservative capital structure over time.

Total Assets

Overall growth from 68,452 million US dollars in 2019 to peak around 88,000 million US dollars in early 2024, with slight declines thereafter but maintaining high levels above 85,000 million US dollars.

Common Stockholders’ Investment

Steady increase throughout the period, rising from approximately 18,000 million US dollars to over 28,000 million US dollars, indicating strengthening equity.

Financial Leverage

Gradual decrease from 3.77 to 3.12, signifying reduced leverage and a shift towards a more equity-driven capital structure.