FedEx Corp. (NYSE:FDX)

Net fixed asset turnover

The ratio exhibits some fluctuations over the observed period. It started at 2.29 in 2019, decreased to 2.06 in 2020, then increased to a peak of 2.45 in 2022, followed by a decline to 2.11 in 2024. This indicates variability in the efficiency with which the company utilized its net fixed assets to generate sales, with generally lower turnover in the recent years compared to the early part of the period.

Net fixed asset turnover (including operating lease, right-of-use asset)

This metric shows a marked decline from 2.29 in 2019 to 1.46 in 2020, followed by a gradual improvement peaking at 1.71 in 2022. However, it slightly decreased afterwards, settling at 1.50 in 2024. The significant drop in 2020 suggests changes possibly related to the adoption of new accounting standards or lease capitalization, which affected asset base and turnover efficiency measurements.

Total asset turnover

The total asset turnover ratio declined notably from 1.28 in 2019 to 0.94 in 2020, then experienced a modest recovery in the subsequent years, reaching 1.09 in 2022 before tapering off slightly to 1.01 by 2024. Overall, this points to reduced asset efficiency in 2020 with some normalization later, though not returning to initial levels.

Equity turnover

The equity turnover ratio steadily decreased during the period under review, from 3.92 in 2019 to 3.18 in 2024. Although some small fluctuations occurred (a dip to 3.47 in 2021, a brief rise to 3.75 in 2022), the general trend reflects diminishing sales generated per unit of shareholder equity over time.

The financial data reveals several notable trends over the evaluated periods.

Revenue

Revenue exhibited a fluctuating pattern, initially declining marginally from 69,693 million USD in 2019 to 69,217 million USD in 2020. Subsequently, there was a significant increase to 83,959 million USD in 2021 and continued growth to 93,512 million USD in 2022. However, the revenue declined in the following years, decreasing to 90,155 million USD in 2023 and further to 87,693 million USD in 2024. This suggests that after a strong recovery and growth phase, the company experienced a downward trend in recent years.

Net Property and Equipment

There was a consistent and steady increase in net property and equipment, rising from 30,429 million USD in 2019 to 41,491 million USD in 2024. This indicates ongoing investments in fixed assets, which could reflect expansion or modernization efforts.

Net Fixed Asset Turnover

The net fixed asset turnover ratio displayed some variability. Starting at 2.29 in 2019, the ratio fell to 2.06 in 2020, then improved to a peak of 2.45 in 2022. Following that peak, the ratio declined to 2.22 in 2023 and further to 2.11 in 2024. This fluctuation suggests changes in how efficiently the company is utilizing its fixed assets to generate revenue, with efficiency peaking in 2022 before tapering off.

Overall, the data suggests that despite increased asset investment, the company’s revenue growth has become more volatile, with efficiency in asset utilization not consistently improving. The recent declines in revenue and fixed asset turnover may warrant further examination into operational effectiveness and market conditions.

The financial data reveals several key trends over the six-year period ending May 31, 2024. Revenue exhibited fluctuation, initially remaining relatively stable between 2019 and 2020, then increasing notably in 2021 and 2022 before experiencing declines in the subsequent two years. This suggests a period of growth followed by a contraction in recent years.

The net property and equipment, encompassing operating leases and right-of-use assets, showed a consistent upward trajectory throughout the period. The asset base grew significantly, indicating ongoing investments or acquisitions of long-term assets. This expansion could reflect a strategic focus on capacity enhancement or modernization of physical infrastructure.

The net fixed asset turnover ratio, which measures revenue generated per unit of fixed asset, declined sharply from 2019 to 2020, then partially recovered in the following years before tapering off again by 2024. The initial drop suggests a period in which asset growth outpaced revenue increases, leading to lower efficiency in asset utilization. Although there was some improvement, the ratio did not return to earlier levels, implying persistent pressure on asset efficiency despite the growing asset base.

Revenue Trends

Stable in the early years, peaking in 2022 followed by declines in 2023 and 2024.

Net Property and Equipment

Consistent and substantial growth each year, indicating increased capital investment.

Net Fixed Asset Turnover Ratio

Significant decline in 2020, partial recovery afterward, but overall lower than in 2019, showing reduced efficiency in asset use.

Revenue

The revenue experienced fluctuations over the observed periods. Initially, revenue remained relatively stable between 2019 and 2020, around $69 billion. A significant increase occurred in 2021, reaching approximately $83.9 billion, followed by further growth peaking in 2022 at about $93.5 billion. However, revenue decreased subsequently, falling to roughly $90.2 billion in 2023 and further declining to approximately $87.7 billion in 2024.

Total assets

Total assets displayed a consistent upward trend from 2019 through 2023. Starting at approximately $54.4 billion in 2019, assets increased sharply to $73.5 billion in 2020 and continued to grow to $87.1 billion by 2023. In 2024, total assets stabilized, showing a slight decline to about $87.0 billion.

Total asset turnover

Total asset turnover, which measures efficiency in using assets to generate revenue, declined noticeably from 1.28 in 2019 to a low of 0.94 in 2020. Thereafter, it gradually improved, reaching 1.09 in 2022. However, the ratio slightly reduced again to 1.03 in 2023 and further to 1.01 in 2024, indicating a marginal decrease in asset utilization efficiency in the most recent year.

Overall Analysis

The data reveal that while the company significantly increased its total assets over the five-year span, revenue growth did not consistently keep pace, particularly in the latest years where revenue declined despite stable assets. The decrease in total asset turnover in 2020 suggests reduced operational efficiency during that period, with only partial recovery in subsequent years. The recent downward movement in revenue combined with stable asset levels and slightly declining asset turnover could signal emerging challenges in generating sales from the asset base.

The financial data indicates several notable trends over the analyzed period. Revenue initially demonstrates a modest decline from 69,693 million US dollars in May 2019 to 69,217 million US dollars in May 2020. Subsequently, there is a marked increase, reaching a peak of 93,512 million US dollars in May 2022. However, this growth is followed by a decline in the last two years, with revenue falling to 90,155 million US dollars in May 2023 and further down to 87,693 million US dollars in May 2024.

Common stockholders’ investment shows a consistent upward trajectory throughout the period. Starting at 17,757 million US dollars in May 2019, it increases steadily each year, reaching 27,582 million US dollars by May 2024. This growth indicates ongoing accumulation of equity base and possibly retained earnings or injections of new capital.

Equity turnover, representing the ratio of revenue to common stockholders’ investment, exhibits a general downward trend over the period. The ratio declines from 3.92 in May 2019 to 3.18 in May 2024, suggesting that revenue generation relative to the equity base is decreasing. This decline might reflect the combination of slower revenue growth in recent years with a steadily increasing equity base.

Revenue

Initial decline in 2020, significant growth peaking in 2022, followed by declines in 2023 and 2024.

Common stockholders’ investment

Steady increase across all years, indicating growing equity base.

Equity turnover

Gradual decrease indicating reduced efficiency in generating revenue from equity over time.