Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
FedEx Corp., long-term (investment) activity 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 investment activity ratios exhibit a general trend of volatility followed by a gradual decline in asset utilization efficiency, with a projected stabilization toward the end of the period.
- Fixed Asset Utilization
- Net fixed asset turnover peaked in 2022 at 2.45 before contracting to 2.11 by 2025. When including right-of-use assets, the ratio followed an identical trajectory, peaking at 1.71 in 2022 and reaching a low of 1.50 in 2024. A recovery is anticipated in 2026, with the standard ratio rising to 2.25 and the lease-inclusive ratio improving to 1.61.
- Total Asset Efficiency
- Total asset turnover remained relatively stable but trended downward after a peak of 1.09 in 2022. A consistent decline is observed through 2026, where the ratio is projected to reach 0.96, indicating a slight reduction in the capacity to generate revenue from the total asset base.
- Equity Turnover
- Equity turnover shows the most pronounced downward trend among the observed activity ratios. After reaching a maximum of 3.75 in 2022, the ratio decreased steadily each year, ending at 2.99 in 2026. This indicates a diminishing rate of revenue generation relative to the shareholders' equity investment over the analyzed period.
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Net Fixed Asset Turnover
FedEx Corp., net fixed asset turnover 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) | |||||||
| Revenue | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | |
| Net property and equipment | 42,044) | 41,642) | 41,491) | 40,698) | 38,091) | 35,752) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 2.25 | 2.11 | 2.11 | 2.22 | 2.45 | 2.35 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Uber Technologies Inc. | — | 27.42 | 22.53 | 17.98 | 15.31 | 9.42 | |
| Union Pacific Corp. | — | 0.41 | 0.42 | 0.42 | 0.44 | 0.40 | |
| United Airlines Holdings Inc. | — | 1.28 | 1.33 | 1.35 | 1.31 | 0.77 | |
| United Parcel Service Inc. | — | 2.35 | 2.45 | 2.46 | 2.89 | 2.91 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Transportation | — | 1.67 | 1.67 | 1.67 | 1.79 | 1.55 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Industrials | — | 2.84 | 2.76 | 2.86 | 2.94 | 2.72 | |
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
Net fixed asset turnover = Revenue ÷ Net property and equipment
= 94,720 ÷ 42,044 = 2.25
2 Click competitor name to see calculations.
Analysis of the relationship between revenue and net property and equipment reveals a period of fluctuating asset efficiency between 2021 and 2026. While investment in fixed assets followed a consistent upward trajectory throughout the period, revenue experienced significant volatility, resulting in a variable net fixed asset turnover ratio.
- Net Fixed Asset Turnover Trends
- The net fixed asset turnover ratio reached a peak of 2.45 in 2022, corresponding with a sharp increase in revenue. This was followed by a steady decline, reaching a low of 2.11 in 2024 and remaining stagnant through 2025. A recovery to 2.25 is observed in 2026, driven by a significant revenue increase to 94,720 million.
- Fixed Asset Accumulation
- Net property and equipment showed continuous growth, rising from 35,752 million in 2021 to 42,044 million in 2026. This sustained capital investment occurred independently of revenue swings, indicating a consistent expansion of the company's physical infrastructure.
- Asset Utilization Efficiency
- The reduction in the turnover ratio between 2022 and 2025 suggests a period of diminishing efficiency, where the growth in the asset base outpaced the growth in revenue. The subsequent rise in 2026 indicates that the expanded capacity is beginning to generate higher proportional revenue, improving the overall efficiency of long-term investments.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
FedEx Corp., net fixed asset turnover (including operating lease, right-of-use asset) 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) | |||||||
| Revenue | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | |
| Net property and equipment | 42,044) | 41,642) | 41,491) | 40,698) | 38,091) | 35,752) | |
| Operating lease right-of-use assets, net | 16,822) | 16,453) | 17,115) | 17,347) | 16,613) | 15,383) | |
| Net property and equipment (including operating lease, right-of-use asset) | 58,866) | 58,095) | 58,606) | 58,045) | 54,704) | 51,135) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.61 | 1.51 | 1.50 | 1.55 | 1.71 | 1.64 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Uber Technologies Inc. | — | 17.28 | 14.14 | 11.25 | 9.03 | 5.39 | |
| Union Pacific Corp. | — | 0.40 | 0.41 | 0.41 | 0.43 | 0.38 | |
| United Airlines Holdings Inc. | — | 1.16 | 1.22 | 1.23 | 1.17 | 0.67 | |
| United Parcel Service Inc. | — | 2.11 | 2.20 | 2.20 | 2.61 | 2.63 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Transportation | — | 1.45 | 1.45 | 1.44 | 1.53 | 1.33 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Industrials | — | 2.49 | 2.41 | 2.49 | 2.54 | 2.34 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Net property and equipment (including operating lease, right-of-use asset)
= 94,720 ÷ 58,866 = 1.61
2 Click competitor name to see calculations.
The analysis of investment activity reveals a fluctuating trend in asset utilization efficiency between May 31, 2021, and May 31, 2026. While the company experienced a peak in efficiency in 2022, a subsequent decline occurred through 2024, followed by a projected recovery toward the end of the period.
- Revenue Trends
- Revenue exhibited significant volatility, peaking at 93,512 million in 2022 before entering a period of contraction that reached a low of 87,693 million in 2024. A recovery phase is observed thereafter, with a projected increase to 94,720 million by May 31, 2026.
- Net Fixed Asset Base Evolution
- The net property and equipment, including right-of-use assets, showed a consistent upward trajectory from 51,135 million in 2021 to a peak of 58,606 million in 2024. For the final two years of the period, the asset base remained relatively stable, concluding at 58,866 million in 2026.
- Net Fixed Asset Turnover Dynamics
- The net fixed asset turnover ratio increased from 1.64 in 2021 to a peak of 1.71 in 2022, indicating a period of high operational efficiency where revenue growth outpaced asset expansion. However, the ratio declined to 1.50 by 2024, driven by the simultaneous occurrence of falling revenues and a growing asset base. This downward trend stabilized in 2025 at 1.51 and is projected to improve to 1.61 by 2026, suggesting an anticipated increase in the productivity of fixed assets as revenue grows while the asset base remains constant.
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Total Asset Turnover
FedEx Corp., total asset turnover 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) | |||||||
| Revenue | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | |
| Total assets | 98,937) | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.96 | 1.00 | 1.01 | 1.03 | 1.09 | 1.01 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Uber Technologies Inc. | — | 0.84 | 0.86 | 0.96 | 0.99 | 0.45 | |
| Union Pacific Corp. | — | 0.35 | 0.36 | 0.36 | 0.38 | 0.34 | |
| United Airlines Holdings Inc. | — | 0.77 | 0.77 | 0.76 | 0.67 | 0.36 | |
| United Parcel Service Inc. | — | 1.21 | 1.30 | 1.28 | 1.41 | 1.40 | |
| Total Asset Turnover, Sector | |||||||
| Transportation | — | 0.85 | 0.87 | 0.88 | 0.92 | 0.76 | |
| Total Asset Turnover, Industry | |||||||
| Industrials | — | 0.66 | 0.65 | 0.67 | 0.66 | 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
Total asset turnover = Revenue ÷ Total assets
= 94,720 ÷ 98,937 = 0.96
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a cyclical pattern over the observed six-year period, peaking in 2022 before entering a gradual downward trajectory. This trend indicates a diminishing efficiency in utilizing the total asset base to generate revenue, ultimately resulting in a ratio below 1.00 by May 31, 2026.
- Revenue Dynamics
- Revenue experienced an initial increase from 83,959 million USD in 2021 to a peak of 93,512 million USD in 2022. This was followed by a period of contraction and stabilization between 2023 and 2025, with values fluctuating between 87,693 million and 90,155 million USD. A significant recovery is observed in 2026, with revenue rising to 94,720 million USD.
- Asset Base Expansion
- Total assets demonstrated a consistent upward trend from 2021 through 2025, growing from 82,777 million USD to 87,627 million USD. A substantial expansion occurred in the final year, where total assets increased sharply to 98,937 million USD by May 31, 2026.
- Analysis of Asset Turnover Efficiency
- Asset utilization efficiency reached its zenith in 2022 with a ratio of 1.09, as revenue growth significantly outpaced the growth of the asset base. Subsequent years show a steady decline in this ratio. The most pronounced decrease occurred between 2025 and 2026, where the ratio fell to 0.96. This decline is directly attributable to the surge in total assets, which grew at a rate that exceeded the corresponding increase in revenue, thereby lowering the overall turnover efficiency.
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Equity Turnover
FedEx Corp., equity turnover 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) | |||||||
| Revenue | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 2.99 | 3.13 | 3.18 | 3.46 | 3.75 | 3.47 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Uber Technologies Inc. | — | 1.92 | 2.04 | 3.31 | 4.34 | 1.21 | |
| Union Pacific Corp. | — | 1.33 | 1.44 | 1.63 | 2.05 | 1.54 | |
| United Airlines Holdings Inc. | — | 3.87 | 4.50 | 5.76 | 6.52 | 4.90 | |
| United Parcel Service Inc. | — | 5.46 | 5.45 | 5.26 | 5.07 | 6.83 | |
| Equity Turnover, Sector | |||||||
| Transportation | — | 2.97 | 3.19 | 3.76 | 4.16 | 3.40 | |
| Equity Turnover, Industry | |||||||
| Industrials | — | 2.88 | 2.92 | 3.33 | 3.06 | 2.63 | |
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
Equity turnover = Revenue ÷ Common stockholders’ investment
= 94,720 ÷ 31,647 = 2.99
2 Click competitor name to see calculations.
The analysis of equity turnover reveals a period of initial efficiency growth followed by a sustained decline in the company's ability to generate revenue relative to its equity base. While total revenue experienced fluctuations, the capital invested by common stockholders grew consistently throughout the period.
- Revenue Trajectory
- Revenue exhibited a volatile pattern, peaking at US$ 93,512 million in 2022 before experiencing a two-year contraction that reached a low of US$ 87,693 million in 2024. A recovery phase followed, with revenue climbing to US$ 94,720 million by May 31, 2026.
- Growth of Common Stockholders' Investment
- A steady and uninterrupted increase in the equity base is observed. Common stockholders' investment rose from US$ 24,168 million in 2021 to US$ 31,647 million in 2026, representing a consistent accumulation of equity over the six-year period.
- Equity Turnover Efficiency
- The equity turnover ratio peaked at 3.75 in 2022, coinciding with the first significant surge in revenue. However, a downward trend emerged thereafter, with the ratio falling to 2.99 by 2026. This decline indicates that the growth in the equity base has outpaced revenue growth, resulting in lower revenue generation for every dollar of equity invested.
The divergence between the consistently increasing equity investment and the fluctuating revenue stream explains the compression of the turnover ratio. The transition from a ratio of 3.75 to 2.99 suggests a decrease in the operational efficiency of the company's long-term capital utilization.
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