Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
The solvency profile exhibits overall stability across the analyzed period, characterized by a gradual deleveraging trend between 2022 and 2025, followed by a modest increase in leverage ratios during the first half of 2026.
- Debt to Equity Dynamics
- The debt to equity ratio demonstrated a general decline from 0.85 in August 2021 to a low of 0.73 in May 2024. This indicates a period of strengthened equity relative to debt. However, a reversal occurred in February 2026, where the ratio peaked at 0.85 before moderating to 0.81 by May 2026.
- When incorporating operating lease liabilities, the debt to equity ratio is significantly higher, fluctuating between 1.33 and 1.58. The peak of 1.58 in November 2022 underscores the substantial impact of lease obligations on the total leverage profile.
- Capital Structure and Asset Coverage
- Debt to capital remained remarkably consistent, oscillating within a tight range of 0.42 to 0.46. The inclusion of operating lease liabilities shifted this range upward to between 0.57 and 0.61, suggesting that lease obligations constitute a stable and significant portion of the total capital base.
- The debt to assets ratio remained steady at approximately 0.23 to 0.24 for the majority of the period, with a slight uptick to 0.27 in February 2026. When including operating lease liabilities, the ratio stayed nearly flat between 0.42 and 0.44, indicating a consistent proportional relationship between total liabilities and total assets.
- Financial Leverage Trends
- Financial leverage peaked at 3.55 in November 2022 and followed a consistent downward trajectory to a minimum of 3.12 in May 2025. This contraction suggests a period of improved financial stability or asset expansion. The ratio stabilized between 3.13 and 3.18 through May 2026, remaining below the levels observed in the 2021-2022 timeframe.
The analysis indicates that while the company maintains a consistent solvency strategy, the reliance on operating leases substantially increases the effective debt load. The period from 2023 to early 2025 was marked by a successful reduction in leverage, though the slight increase in early 2026 suggests a return to higher borrowing or a shift in capital allocation.
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Debt Ratios
Debt to Equity
FedEx Corp., debt to equity calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Current portion of long-term debt | 1,676) | 2,422) | 901) | 883) | 1,428) | 611) | 592) | 622) | 68) | 67) | 334) | 351) | 126) | 147) | 172) | 139) | 82) | 116) | 117) | 125) | ||||||
| Long-term debt, less current portion | 23,293) | 22,831) | 20,294) | 20,291) | 19,151) | 19,530) | 19,433) | 19,664) | 20,135) | 20,122) | 20,193) | 20,145) | 20,453) | 20,122) | 20,076) | 19,918) | 20,182) | 20,393) | 20,386) | 20,554) | ||||||
| Total debt | 25,714) | 25,253) | 21,195) | 21,174) | 20,579) | 20,141) | 20,025) | 20,286) | 20,203) | 20,189) | 20,527) | 20,496) | 20,579) | 20,269) | 20,248) | 20,057) | 20,264) | 20,509) | 20,503) | 20,679) | ||||||
| Common stockholders’ investment | 31,647) | 29,804) | 28,140) | 27,771) | 28,074) | 26,708) | 26,460) | 27,176) | 27,582) | 26,375) | 26,766) | 26,534) | 26,088) | 24,733) | 24,115) | 25,140) | 24,939) | 24,526) | 24,940) | 24,321) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | 0.81 | 0.85 | 0.75 | 0.76 | 0.73 | 0.75 | 0.76 | 0.75 | 0.73 | 0.77 | 0.77 | 0.77 | 0.79 | 0.82 | 0.84 | 0.80 | 0.81 | 0.84 | 0.82 | 0.85 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 0.47 | 0.42 | 0.39 | 0.38 | 0.42 | 0.38 | 0.39 | 0.74 | 0.77 | 0.86 | 0.84 | 0.99 | 1.07 | 1.23 | 1.26 | 1.48 | 1.39 | 1.04 | ||||||
| Union Pacific Corp. | — | — | 1.47 | 1.58 | 1.72 | 1.84 | 2.02 | 2.05 | 1.85 | 1.89 | 1.93 | 2.04 | 2.20 | 2.35 | 2.52 | 2.71 | 2.74 | 2.85 | 2.52 | 2.71 | ||||||
| United Airlines Holdings Inc. | — | — | 1.58 | 1.52 | 1.64 | 1.78 | 2.02 | 2.19 | 2.26 | 2.49 | 2.78 | 3.24 | 3.40 | 3.57 | 4.17 | 4.80 | 4.68 | 6.74 | 8.55 | 9.55 | ||||||
| United Parcel Service Inc. | — | — | 1.63 | 1.55 | 1.49 | 1.57 | 1.57 | 1.36 | 1.27 | 1.30 | 1.30 | 1.18 | 1.29 | 1.10 | 1.04 | 1.11 | 0.99 | 1.20 | 1.26 | 1.42 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
Debt to equity = Total debt ÷ Common stockholders’ investment
= 25,714 ÷ 31,647 = 0.81
2 Click competitor name to see calculations.
The solvency profile exhibits a period of relative stability and gradual improvement in the leverage position, followed by a notable increase in total debt during the final two quarters of the observed timeframe.
- Total Debt Dynamics
- Total debt levels remained remarkably consistent for the majority of the period, fluctuating within a narrow band between 20.0 billion and 21.2 billion USD from August 2021 through November 2025. A significant shift occurred in early 2026, where debt levels rose sharply to 25.25 billion USD in February and reached a peak of 25.71 billion USD by May 2026.
- Common Stockholders' Investment Trends
- Equity showed a consistent upward trajectory, growing from 24.32 billion USD in August 2021 to 31.65 billion USD by May 2026. This steady expansion of the capital base acted as a primary driver for improving the company's solvency metrics throughout the analyzed years.
- Debt to Equity Ratio Analysis
- The debt to equity ratio transitioned from 0.85 in August 2021 to a low of 0.73 by May 2024 and again in May 2025, signaling a reduction in financial leverage relative to equity. However, this improving trend was reversed in February 2026, when the ratio returned to 0.85, coinciding with the sharp increase in total debt. The ratio subsequently eased to 0.81 by May 2026, as equity growth continued to offset a portion of the new debt obligations.
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Debt to Equity (including Operating Lease Liability)
FedEx Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Current portion of long-term debt | 1,676) | 2,422) | 901) | 883) | 1,428) | 611) | 592) | 622) | 68) | 67) | 334) | 351) | 126) | 147) | 172) | 139) | 82) | 116) | 117) | 125) | ||||||
| Long-term debt, less current portion | 23,293) | 22,831) | 20,294) | 20,291) | 19,151) | 19,530) | 19,433) | 19,664) | 20,135) | 20,122) | 20,193) | 20,145) | 20,453) | 20,122) | 20,076) | 19,918) | 20,182) | 20,393) | 20,386) | 20,554) | ||||||
| Total debt | 25,714) | 25,253) | 21,195) | 21,174) | 20,579) | 20,141) | 20,025) | 20,286) | 20,203) | 20,189) | 20,527) | 20,496) | 20,579) | 20,269) | 20,248) | 20,057) | 20,264) | 20,509) | 20,503) | 20,679) | ||||||
| Current portion of operating lease liabilities | 2,680) | 2,624) | 2,621) | 2,591) | 2,565) | 2,524) | 2,536) | 2,510) | 2,463) | 2,447) | 2,433) | 2,382) | 2,390) | 2,446) | 2,498) | 2,470) | 2,443) | 2,395) | 2,371) | 2,263) | ||||||
| Operating lease liabilities, less current portion | 14,549) | 14,145) | 13,950) | 14,141) | 14,272) | 14,366) | 14,713) | 14,969) | 15,053) | 14,878) | 15,222) | 15,338) | 15,363) | 15,373) | 15,290) | 15,118) | 14,487) | 14,450) | 13,955) | 13,382) | ||||||
| Total debt (including operating lease liability) | 42,943) | 42,022) | 37,766) | 37,906) | 37,416) | 37,031) | 37,274) | 37,765) | 37,719) | 37,514) | 38,182) | 38,216) | 38,332) | 38,088) | 38,036) | 37,645) | 37,194) | 37,354) | 36,829) | 36,324) | ||||||
| Common stockholders’ investment | 31,647) | 29,804) | 28,140) | 27,771) | 28,074) | 26,708) | 26,460) | 27,176) | 27,582) | 26,375) | 26,766) | 26,534) | 26,088) | 24,733) | 24,115) | 25,140) | 24,939) | 24,526) | 24,940) | 24,321) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.36 | 1.41 | 1.34 | 1.36 | 1.33 | 1.39 | 1.41 | 1.39 | 1.37 | 1.42 | 1.43 | 1.44 | 1.47 | 1.54 | 1.58 | 1.50 | 1.49 | 1.52 | 1.48 | 1.49 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 0.54 | 0.50 | 0.45 | 0.43 | 0.50 | 0.45 | 0.46 | 0.86 | 0.90 | 1.01 | 1.00 | 1.17 | 1.27 | 1.48 | 1.52 | 1.77 | 1.68 | 1.25 | ||||||
| Union Pacific Corp. | — | — | 1.50 | 1.61 | 1.76 | 1.88 | 2.07 | 2.09 | 1.90 | 1.95 | 1.99 | 2.10 | 2.29 | 2.44 | 2.62 | 2.81 | 2.85 | 2.96 | 2.62 | 2.82 | ||||||
| United Airlines Holdings Inc. | — | — | 2.02 | 1.95 | 2.03 | 2.19 | 2.45 | 2.61 | 2.65 | 2.92 | 3.25 | 3.79 | 3.94 | 4.15 | 4.85 | 5.58 | 5.41 | 7.84 | 9.94 | 11.12 | ||||||
| United Parcel Service Inc. | — | — | 1.90 | 1.82 | 1.76 | 1.85 | 1.84 | 1.63 | 1.53 | 1.56 | 1.55 | 1.44 | 1.54 | 1.33 | 1.25 | 1.32 | 1.19 | 1.41 | 1.48 | 1.65 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 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 company's solvency profile over the analyzed period exhibits a general trend toward improved leverage, characterized by a gradual decrease in the debt-to-equity ratio despite a significant increase in absolute debt levels toward the end of the series.
- Total Debt Trends
- Total debt, including operating lease liabilities, remained relatively stable from August 2021 through November 2025, fluctuating within a range of approximately US$ 36.3 billion to US$ 38.3 billion. A notable escalation in leverage occurred in early 2026, with debt levels rising to US$ 42.0 billion in February 2026 and peaking at US$ 42.9 billion by May 2026.
- Equity Growth
- Common stockholders' investment demonstrated a consistent upward trajectory. Starting at US$ 24.3 billion in August 2021, equity grew to US$ 31.6 billion by May 2026. This steady accumulation of equity served as a primary driver in reducing the overall leverage ratio, offsetting the impact of debt fluctuations for much of the period.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio reached a peak of 1.58 in November 2022, marking the period of highest relative leverage. Following this peak, a sustained downward trend was observed, with the ratio reaching a low of 1.33 in May 2025. Although the sharp increase in total debt in early 2026 caused a temporary spike in the ratio to 1.41 in February 2026, the concurrent growth in equity moderated this impact, resulting in a final ratio of 1.36 by May 2026.
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Debt to Capital
FedEx Corp., debt to capital calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Current portion of long-term debt | 1,676) | 2,422) | 901) | 883) | 1,428) | 611) | 592) | 622) | 68) | 67) | 334) | 351) | 126) | 147) | 172) | 139) | 82) | 116) | 117) | 125) | ||||||
| Long-term debt, less current portion | 23,293) | 22,831) | 20,294) | 20,291) | 19,151) | 19,530) | 19,433) | 19,664) | 20,135) | 20,122) | 20,193) | 20,145) | 20,453) | 20,122) | 20,076) | 19,918) | 20,182) | 20,393) | 20,386) | 20,554) | ||||||
| Total debt | 25,714) | 25,253) | 21,195) | 21,174) | 20,579) | 20,141) | 20,025) | 20,286) | 20,203) | 20,189) | 20,527) | 20,496) | 20,579) | 20,269) | 20,248) | 20,057) | 20,264) | 20,509) | 20,503) | 20,679) | ||||||
| Common stockholders’ investment | 31,647) | 29,804) | 28,140) | 27,771) | 28,074) | 26,708) | 26,460) | 27,176) | 27,582) | 26,375) | 26,766) | 26,534) | 26,088) | 24,733) | 24,115) | 25,140) | 24,939) | 24,526) | 24,940) | 24,321) | ||||||
| Total capital | 57,361) | 55,057) | 49,335) | 48,945) | 48,653) | 46,849) | 46,485) | 47,462) | 47,785) | 46,564) | 47,293) | 47,030) | 46,667) | 45,002) | 44,363) | 45,197) | 45,203) | 45,035) | 45,443) | 45,000) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | 0.45 | 0.46 | 0.43 | 0.43 | 0.42 | 0.43 | 0.43 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.45 | 0.46 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 0.32 | 0.30 | 0.28 | 0.27 | 0.30 | 0.28 | 0.28 | 0.43 | 0.43 | 0.46 | 0.46 | 0.50 | 0.52 | 0.55 | 0.56 | 0.60 | 0.58 | 0.51 | ||||||
| Union Pacific Corp. | — | — | 0.59 | 0.61 | 0.63 | 0.65 | 0.67 | 0.67 | 0.65 | 0.65 | 0.66 | 0.67 | 0.69 | 0.70 | 0.72 | 0.73 | 0.73 | 0.74 | 0.72 | 0.73 | ||||||
| United Airlines Holdings Inc. | — | — | 0.61 | 0.60 | 0.62 | 0.64 | 0.67 | 0.69 | 0.69 | 0.71 | 0.74 | 0.76 | 0.77 | 0.78 | 0.81 | 0.83 | 0.82 | 0.87 | 0.90 | 0.91 | ||||||
| United Parcel Service Inc. | — | — | 0.62 | 0.61 | 0.60 | 0.61 | 0.61 | 0.58 | 0.56 | 0.57 | 0.57 | 0.54 | 0.56 | 0.52 | 0.51 | 0.53 | 0.50 | 0.55 | 0.56 | 0.59 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 25,714 ÷ 57,361 = 0.45
2 Click competitor name to see calculations.
An analysis of solvency metrics reveals a period of relative stability in the capital structure, followed by a notable increase in both total debt and total capital toward the end of the observed period. The overall debt-to-capital ratio remained constrained within a narrow range, indicating a consistent approach to leverage despite shifts in absolute financing levels.
- Debt to Capital Ratio Trends
- The ratio exhibited a gradual decline from 0.46 in August 2021 to a low of 0.42 in May 2024 and May 2025. This compression suggests a period where total capital growth outpaced the acquisition of new debt, effectively lowering the proportion of debt relative to the total capital base.
- Total Debt and Capital Evolution
- Total debt remained remarkably stagnant, fluctuating between $20.0 billion and $21.2 billion from August 2021 through November 2025. A sharp escalation occurred starting in February 2026, with debt rising to $25.25 billion and reaching $25.71 billion by May 2026. This increase in liability was mirrored by a corresponding rise in total capital, which expanded from $49.34 billion in November 2025 to $57.36 billion by May 2026.
- Leverage Stability and Solvency
- Despite the significant spike in absolute debt levels during the first half of 2026, the debt-to-capital ratio remained stable, returning to 0.45 by May 2026. This demonstrates that the expansion of the balance sheet was executed proportionally, ensuring that the increase in debt did not lead to a disproportionate rise in the company's overall leverage profile.
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Debt to Capital (including Operating Lease Liability)
FedEx Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Current portion of long-term debt | 1,676) | 2,422) | 901) | 883) | 1,428) | 611) | 592) | 622) | 68) | 67) | 334) | 351) | 126) | 147) | 172) | 139) | 82) | 116) | 117) | 125) | ||||||
| Long-term debt, less current portion | 23,293) | 22,831) | 20,294) | 20,291) | 19,151) | 19,530) | 19,433) | 19,664) | 20,135) | 20,122) | 20,193) | 20,145) | 20,453) | 20,122) | 20,076) | 19,918) | 20,182) | 20,393) | 20,386) | 20,554) | ||||||
| Total debt | 25,714) | 25,253) | 21,195) | 21,174) | 20,579) | 20,141) | 20,025) | 20,286) | 20,203) | 20,189) | 20,527) | 20,496) | 20,579) | 20,269) | 20,248) | 20,057) | 20,264) | 20,509) | 20,503) | 20,679) | ||||||
| Current portion of operating lease liabilities | 2,680) | 2,624) | 2,621) | 2,591) | 2,565) | 2,524) | 2,536) | 2,510) | 2,463) | 2,447) | 2,433) | 2,382) | 2,390) | 2,446) | 2,498) | 2,470) | 2,443) | 2,395) | 2,371) | 2,263) | ||||||
| Operating lease liabilities, less current portion | 14,549) | 14,145) | 13,950) | 14,141) | 14,272) | 14,366) | 14,713) | 14,969) | 15,053) | 14,878) | 15,222) | 15,338) | 15,363) | 15,373) | 15,290) | 15,118) | 14,487) | 14,450) | 13,955) | 13,382) | ||||||
| Total debt (including operating lease liability) | 42,943) | 42,022) | 37,766) | 37,906) | 37,416) | 37,031) | 37,274) | 37,765) | 37,719) | 37,514) | 38,182) | 38,216) | 38,332) | 38,088) | 38,036) | 37,645) | 37,194) | 37,354) | 36,829) | 36,324) | ||||||
| Common stockholders’ investment | 31,647) | 29,804) | 28,140) | 27,771) | 28,074) | 26,708) | 26,460) | 27,176) | 27,582) | 26,375) | 26,766) | 26,534) | 26,088) | 24,733) | 24,115) | 25,140) | 24,939) | 24,526) | 24,940) | 24,321) | ||||||
| Total capital (including operating lease liability) | 74,590) | 71,826) | 65,906) | 65,677) | 65,490) | 63,739) | 63,734) | 64,941) | 65,301) | 63,889) | 64,948) | 64,750) | 64,420) | 62,821) | 62,151) | 62,785) | 62,133) | 61,880) | 61,769) | 60,645) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.58 | 0.59 | 0.57 | 0.58 | 0.57 | 0.58 | 0.58 | 0.58 | 0.58 | 0.59 | 0.59 | 0.59 | 0.60 | 0.61 | 0.61 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 0.35 | 0.33 | 0.31 | 0.30 | 0.33 | 0.31 | 0.32 | 0.46 | 0.47 | 0.50 | 0.50 | 0.54 | 0.56 | 0.60 | 0.60 | 0.64 | 0.63 | 0.56 | ||||||
| Union Pacific Corp. | — | — | 0.60 | 0.62 | 0.64 | 0.65 | 0.67 | 0.68 | 0.66 | 0.66 | 0.67 | 0.68 | 0.70 | 0.71 | 0.72 | 0.74 | 0.74 | 0.75 | 0.72 | 0.74 | ||||||
| United Airlines Holdings Inc. | — | — | 0.67 | 0.66 | 0.67 | 0.69 | 0.71 | 0.72 | 0.73 | 0.74 | 0.76 | 0.79 | 0.80 | 0.81 | 0.83 | 0.85 | 0.84 | 0.89 | 0.91 | 0.92 | ||||||
| United Parcel Service Inc. | — | — | 0.66 | 0.65 | 0.64 | 0.65 | 0.65 | 0.62 | 0.61 | 0.61 | 0.61 | 0.59 | 0.61 | 0.57 | 0.56 | 0.57 | 0.54 | 0.58 | 0.60 | 0.62 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 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 exhibits a high degree of stability over the analyzed period, characterized by a consistent debt-to-capital ratio that fluctuates within a narrow band between 0.57 and 0.61. This indicates a disciplined approach to maintaining the company's capital structure despite fluctuations in absolute debt and capital levels.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, showed a gradual increase from August 2021 (36,324 million) to a peak in May 2023 (38,332 million). Following this peak, debt levels remained relatively stagnant, oscillating between 37,000 million and 38,000 million through November 2025. A notable escalation occurred in the first half of 2026, with total debt rising sharply to 42,943 million by May 2026.
- Total Capital Trends
- Total capital followed a parallel upward trajectory, beginning at 60,645 million in August 2021 and rising steadily to 65,906 million by November 2025. Similar to the debt trend, a significant expansion in total capital was observed in early 2026, reaching 74,590 million by May 2026.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio remained remarkably stable, initiating at 0.60 and reaching a slight peak of 0.61 in late 2022 and early 2023. A period of gradual improvement in the solvency ratio was observed from August 2023 through November 2025, during which the ratio declined to its lowest point of 0.57. Despite the substantial increase in absolute debt and capital in early 2026, the ratio remained stable between 0.58 and 0.59, suggesting that the increase in liabilities was proportionally offset by an increase in total capital.
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Debt to Assets
FedEx Corp., debt to assets calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Current portion of long-term debt | 1,676) | 2,422) | 901) | 883) | 1,428) | 611) | 592) | 622) | 68) | 67) | 334) | 351) | 126) | 147) | 172) | 139) | 82) | 116) | 117) | 125) | ||||||
| Long-term debt, less current portion | 23,293) | 22,831) | 20,294) | 20,291) | 19,151) | 19,530) | 19,433) | 19,664) | 20,135) | 20,122) | 20,193) | 20,145) | 20,453) | 20,122) | 20,076) | 19,918) | 20,182) | 20,393) | 20,386) | 20,554) | ||||||
| Total debt | 25,714) | 25,253) | 21,195) | 21,174) | 20,579) | 20,141) | 20,025) | 20,286) | 20,203) | 20,189) | 20,527) | 20,496) | 20,579) | 20,269) | 20,248) | 20,057) | 20,264) | 20,509) | 20,503) | 20,679) | ||||||
| Total assets | 98,937) | 94,733) | 89,181) | 88,416) | 87,627) | 85,043) | 85,481) | 86,711) | 87,007) | 86,114) | 88,051) | 87,576) | 87,143) | 85,775) | 85,591) | 85,826) | 85,994) | 84,108) | 84,247) | 82,048) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | 0.26 | 0.27 | 0.24 | 0.24 | 0.23 | 0.24 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 0.19 | 0.18 | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 | 0.23 | 0.23 | 0.24 | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.30 | 0.30 | 0.28 | ||||||
| Union Pacific Corp. | — | — | 0.43 | 0.44 | 0.46 | 0.46 | 0.48 | 0.48 | 0.46 | 0.46 | 0.47 | 0.47 | 0.49 | 0.49 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | ||||||
| United Airlines Holdings Inc. | — | — | 0.31 | 0.30 | 0.33 | 0.33 | 0.35 | 0.36 | 0.39 | 0.39 | 0.40 | 0.41 | 0.45 | 0.43 | 0.44 | 0.45 | 0.48 | 0.48 | 0.48 | 0.50 | ||||||
| United Parcel Service Inc. | — | — | 0.34 | 0.34 | 0.33 | 0.35 | 0.35 | 0.31 | 0.30 | 0.32 | 0.32 | 0.30 | 0.31 | 0.30 | 0.30 | 0.31 | 0.28 | 0.29 | 0.29 | 0.31 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 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 exhibits a period of prolonged stability followed by a significant shift in the capital structure during the first half of 2026. For the majority of the observed period, the company maintained a consistent balance between its total obligations and its asset base, suggesting a disciplined approach to leverage.
- Debt to Assets Ratio Trend
- The ratio remained remarkably stable between August 2021 and November 2025, fluctuating within a narrow range of 0.23 to 0.25. This indicates that debt consistently financed approximately one-quarter of the total assets. However, a notable increase occurred in February 2026, where the ratio peaked at 0.27, before slightly moderating to 0.26 by May 2026.
- Total Debt Analysis
- Total debt levels were largely stagnant from August 2021 through November 2024, hovering around the 20 billion USD mark. A period of moderate increase began in May 2025, culminating in a sharp escalation in early 2026. Debt rose from 21,195 million USD in November 2025 to 25,714 million USD by May 2026, representing a substantial increase in borrowing over a six-month window.
- Asset Growth Patterns
- Total assets demonstrated a steady upward trajectory, growing from 82,048 million USD in August 2021 to 89,181 million USD by November 2025. Similar to the debt trend, there was a significant surge in asset value in 2026, with totals climbing to 98,937 million USD by May 2026. The simultaneous rise in both debt and assets suggests a period of aggressive expansion or strategic investment financed primarily through debt issuance.
Overall, the transition from a stable solvency ratio of 0.23-0.24 to 0.26-0.27 reflects a strategic increase in financial leverage. While the asset base expanded significantly in 2026, the growth in total debt outpaced asset appreciation, resulting in a higher proportion of assets being financed by creditors.
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Debt to Assets (including Operating Lease Liability)
FedEx Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Short-term borrowings | 745) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Current portion of long-term debt | 1,676) | 2,422) | 901) | 883) | 1,428) | 611) | 592) | 622) | 68) | 67) | 334) | 351) | 126) | 147) | 172) | 139) | 82) | 116) | 117) | 125) | ||||||
| Long-term debt, less current portion | 23,293) | 22,831) | 20,294) | 20,291) | 19,151) | 19,530) | 19,433) | 19,664) | 20,135) | 20,122) | 20,193) | 20,145) | 20,453) | 20,122) | 20,076) | 19,918) | 20,182) | 20,393) | 20,386) | 20,554) | ||||||
| Total debt | 25,714) | 25,253) | 21,195) | 21,174) | 20,579) | 20,141) | 20,025) | 20,286) | 20,203) | 20,189) | 20,527) | 20,496) | 20,579) | 20,269) | 20,248) | 20,057) | 20,264) | 20,509) | 20,503) | 20,679) | ||||||
| Current portion of operating lease liabilities | 2,680) | 2,624) | 2,621) | 2,591) | 2,565) | 2,524) | 2,536) | 2,510) | 2,463) | 2,447) | 2,433) | 2,382) | 2,390) | 2,446) | 2,498) | 2,470) | 2,443) | 2,395) | 2,371) | 2,263) | ||||||
| Operating lease liabilities, less current portion | 14,549) | 14,145) | 13,950) | 14,141) | 14,272) | 14,366) | 14,713) | 14,969) | 15,053) | 14,878) | 15,222) | 15,338) | 15,363) | 15,373) | 15,290) | 15,118) | 14,487) | 14,450) | 13,955) | 13,382) | ||||||
| Total debt (including operating lease liability) | 42,943) | 42,022) | 37,766) | 37,906) | 37,416) | 37,031) | 37,274) | 37,765) | 37,719) | 37,514) | 38,182) | 38,216) | 38,332) | 38,088) | 38,036) | 37,645) | 37,194) | 37,354) | 36,829) | 36,324) | ||||||
| Total assets | 98,937) | 94,733) | 89,181) | 88,416) | 87,627) | 85,043) | 85,481) | 86,711) | 87,007) | 86,114) | 88,051) | 87,576) | 87,143) | 85,775) | 85,591) | 85,826) | 85,994) | 84,108) | 84,247) | 82,048) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.43 | 0.44 | 0.42 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.43 | 0.44 | 0.44 | 0.44 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 0.22 | 0.21 | 0.20 | 0.19 | 0.20 | 0.19 | 0.19 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.34 | 0.35 | 0.36 | 0.36 | 0.34 | ||||||
| Union Pacific Corp. | — | — | 0.43 | 0.45 | 0.47 | 0.47 | 0.49 | 0.49 | 0.47 | 0.48 | 0.48 | 0.49 | 0.50 | 0.51 | 0.52 | 0.53 | 0.53 | 0.53 | 0.52 | 0.52 | ||||||
| United Airlines Holdings Inc. | — | — | 0.40 | 0.38 | 0.41 | 0.41 | 0.42 | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | 0.52 | 0.50 | 0.51 | 0.53 | 0.55 | 0.56 | 0.56 | 0.58 | ||||||
| United Parcel Service Inc. | — | — | 0.40 | 0.40 | 0.39 | 0.41 | 0.41 | 0.37 | 0.37 | 0.38 | 0.38 | 0.36 | 0.38 | 0.36 | 0.36 | 0.37 | 0.33 | 0.34 | 0.34 | 0.36 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 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 demonstrates a high degree of stability over the analyzed period, characterized by a Debt to Assets ratio that consistently fluctuates within a narrow range between 0.42 and 0.44.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited gradual growth from August 2021 ($36,324 million) through May 2023, when it reached a peak of $38,332 million. This was followed by a period of relative stabilization and minor contractions, with debt levels remaining largely between $37,000 million and $38,200 million through November 2024. A significant increase is observed in the final two quarters of the series, with debt rising to $42,022 million in February 2026 and $42,943 million in May 2026.
- Total Asset Growth
- Total assets followed a general upward trajectory, increasing from $82,048 million in August 2021 to $89,181 million by November 2025. Similar to the debt trend, a substantial surge in asset value occurred in early 2026, with total assets climbing to $94,733 million in February 2026 and reaching $98,937 million by May 2026.
- Debt to Assets Ratio Interpretation
- Despite the fluctuations in absolute debt and asset levels, the resulting ratio remained remarkably constant. The ratio held steady at 0.44 for the majority of the timeframe, with minor dips to 0.43 and a low of 0.42 in November 2025. The proportional increase in both assets and liabilities during the first half of 2026 ensured that the ratio remained aligned with historical levels, ending at 0.43 in May 2026, indicating a consistent approach to leverage and capital structure.
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Financial Leverage
FedEx Corp., financial leverage calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Total assets | 98,937) | 94,733) | 89,181) | 88,416) | 87,627) | 85,043) | 85,481) | 86,711) | 87,007) | 86,114) | 88,051) | 87,576) | 87,143) | 85,775) | 85,591) | 85,826) | 85,994) | 84,108) | 84,247) | 82,048) | ||||||
| Common stockholders’ investment | 31,647) | 29,804) | 28,140) | 27,771) | 28,074) | 26,708) | 26,460) | 27,176) | 27,582) | 26,375) | 26,766) | 26,534) | 26,088) | 24,733) | 24,115) | 25,140) | 24,939) | 24,526) | 24,940) | 24,321) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | 3.13 | 3.18 | 3.17 | 3.18 | 3.12 | 3.18 | 3.23 | 3.19 | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | 2.41 | 2.42 | 2.29 | 2.25 | 2.48 | 2.40 | 2.38 | 3.19 | 3.36 | 3.58 | 3.44 | 3.84 | 3.93 | 4.32 | 4.37 | 4.98 | 4.66 | 3.68 | ||||||
| Union Pacific Corp. | — | — | 3.44 | 3.59 | 3.77 | 3.97 | 4.22 | 4.27 | 4.01 | 4.07 | 4.11 | 4.29 | 4.54 | 4.75 | 5.00 | 5.30 | 5.38 | 5.56 | 5.07 | 5.38 | ||||||
| United Airlines Holdings Inc. | — | — | 5.06 | 5.10 | 5.00 | 5.33 | 5.77 | 6.03 | 5.84 | 6.35 | 6.96 | 7.83 | 7.63 | 8.26 | 9.52 | 10.56 | 9.77 | 14.08 | 17.76 | 19.05 | ||||||
| United Parcel Service Inc. | — | — | 4.73 | 4.56 | 4.50 | 4.51 | 4.50 | 4.37 | 4.19 | 4.05 | 4.08 | 4.00 | 4.09 | 3.67 | 3.51 | 3.60 | 3.59 | 4.10 | 4.30 | 4.55 | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
Financial leverage = Total assets ÷ Common stockholders’ investment
= 98,937 ÷ 31,647 = 3.13
2 Click competitor name to see calculations.
An expansion of the balance sheet is evident over the analyzed period, characterized by a general increase in both total assets and common stockholders' investment. Total assets grew from 82,048 million US dollars in August 2021 to a peak of 98,937 million US dollars by May 2026. Concurrently, common stockholders' investment demonstrated a steady upward trajectory, rising from 24,321 million US dollars to 31,647 million US dollars, indicating a strengthening of the equity base.
- Financial Leverage Trajectory
- The financial leverage ratio experienced an initial period of ascent, reaching a peak of 3.55 in November 2022. Following this high, a sustained downward trend is observed, with the ratio declining to 3.13 by May 2026. This progression indicates a strategic shift toward a less leveraged capital structure over the five-year span.
- Capital Structure Correlation
- The reduction in the leverage ratio is closely linked to the growth rate of equity relative to asset expansion. While total assets increased significantly, the consistent accumulation of common stockholders' investment served to offset the leverage. The most notable improvement in the ratio occurred between May 2023 and May 2024, where the leverage dropped from 3.34 to 3.15.
- Solvency Stability
- In the final quarters of the analysis, the financial leverage ratio remained relatively stable, fluctuating minimally between 3.12 and 3.18. This stabilization suggests a reached equilibrium in the company's approach to debt and equity financing, resulting in a lower risk profile compared to the 2021-2022 period.
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