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Long-term (Investment) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.


Ratios (Summary)

FedEx Corp., long-term (investment) activity ratios

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May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Net fixed asset turnover 2.32 2.32 2.07 2.27 2.33 2.40
Total asset turnover 1.25 1.24 1.09 1.28 1.38 1.32
Equity turnover 3.37 3.75 3.65 3.17 2.98 2.55

Source: Based on data from FedEx Corp. Annual Reports

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. FedEx Corp.'s net fixed asset turnover improved from 2016 to 2017 and from 2017 to 2018.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. FedEx Corp.'s total asset turnover improved from 2016 to 2017 and from 2017 to 2018.
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. FedEx Corp.'s equity turnover improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Net Fixed Asset Turnover

FedEx Corp., net fixed asset turnover calculation, comparison to benchmarks

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May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Revenues 65,450  60,319  50,365  47,453  45,567  44,287 
Net property and equipment 28,154  25,981  24,284  20,875  19,550  18,484 
Ratio
Net fixed asset turnover1 2.32 2.32 2.07 2.27 2.33 2.40
Benchmarks
Net Fixed Asset Turnover, Competitors
CSX Corp. 0.36 0.36 0.39 0.44 0.44
Union Pacific Corp. 0.41 0.40 0.45 0.52 0.50
United Parcel Service Inc. 2.98 3.24 3.18 3.19 3.09
Net Fixed Asset Turnover, Sector
Industrial Transportation 1.21 1.14 1.18 1.25 1.24
Net Fixed Asset Turnover, Industry
Industrials 2.93 2.90 2.97 2.98 2.94

Source: Based on data from FedEx Corp. Annual Reports

2018 Calculations

1 Net fixed asset turnover = Revenues ÷ Net property and equipment
= 65,450 ÷ 28,154 = 2.32

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. FedEx Corp.'s net fixed asset turnover improved from 2016 to 2017 and from 2017 to 2018.

Total Asset Turnover

FedEx Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Revenues 65,450  60,319  50,365  47,453  45,567  44,287 
Total assets 52,330  48,552  46,064  37,069  33,070  33,567 
Ratio
Total asset turnover1 1.25 1.24 1.09 1.28 1.38 1.32
Benchmarks
Total Asset Turnover, Competitors
CSX Corp. 0.32 0.31 0.34 0.38 0.38
Union Pacific Corp. 0.37 0.36 0.40 0.46 0.44
United Parcel Service Inc. 1.45 1.51 1.52 1.64 1.53
Total Asset Turnover, Sector
Industrial Transportation 0.85 0.80 0.84 0.91 0.88
Total Asset Turnover, Industry
Industrials 0.63 0.62 0.58 0.53 0.52

Source: Based on data from FedEx Corp. Annual Reports

2018 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 65,450 ÷ 52,330 = 1.25

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. FedEx Corp.'s total asset turnover improved from 2016 to 2017 and from 2017 to 2018.

Equity Turnover

FedEx Corp., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014 May 31, 2013
Selected Financial Data (USD $ in millions)
Revenues 65,450  60,319  50,365  47,453  45,567  44,287 
Common stockholders' investment 19,416  16,073  13,784  14,993  15,277  17,398 
Ratio
Equity turnover1 3.37 3.75 3.65 3.17 2.98 2.55
Benchmarks
Equity Turnover, Competitors
CSX Corp. 0.78 0.95 1.01 1.14 1.15
Union Pacific Corp. 0.85 1.00 1.05 1.13 1.03
United Parcel Service Inc. 65.87 150.39 23.63 27.20 8.56
Equity Turnover, Sector
Industrial Transportation 2.80 3.11 2.80 2.82 2.41
Equity Turnover, Industry
Industrials 2.81 2.72 2.41 2.15 1.90

Source: Based on data from FedEx Corp. Annual Reports

2018 Calculations

1 Equity turnover = Revenues ÷ Common stockholders' investment
= 65,450 ÷ 19,416 = 3.37

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. FedEx Corp.'s equity turnover improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.