FedEx Corp. (NYSE:FDX)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates an initial increasing trend from August 2020 (2.09) to May 2021 (2.35), indicating improved efficiency in using fixed assets to generate sales. This upward movement continues modestly until November 2021 (2.41). From November 2021 onward, the ratio exhibits a gradual decline, reaching a low of 2.11 in May 2024. A slight recovery is noted after this point, culminating at 2.18 by November 2025, suggesting a potential stabilization or minor improvement in asset utilization.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This adjusted ratio shows a similar early-month upward trend from August 2020 (1.47) through May 2022 (1.71), reflecting increasing efficiency when incorporating leased assets. Following this peak, a steady decline occurs until it plateaus around 1.5 from May 2023 through May 2024, implying reduced turnover efficiency relative to prior periods. From mid-2024 onward, the ratio displays a slight upward trend, reaching 1.57 by November 2025, indicating a modest recovery in asset turnover inclusive of leased assets.

Total Asset Turnover

Total asset turnover increases from 0.92 in August 2020 to a peak of 1.10 by August and November 2022, signaling enhanced overall asset utilization. Post-peak, the ratio gradually declines through early 2024, bottoming near 1.00, which suggests a reduction in sales generated per unit of asset. Minor fluctuations occur thereafter, ultimately nearing 1.01 by the end of the timeline, indicative of relative stabilization in asset efficiency.

Equity Turnover

Equity turnover starts at 3.67 in August 2020 and experiences volatility with a moderate decline and recovery pattern. After peaking at 3.90 in November 2022, it decreases steadily through mid-2024, reaching levels around 3.18. Subsequent periods show fluctuating but generally lower ratios, ending near 3.20 by November 2025. This pattern may reflect changes in sales generation relative to equity, possibly influenced by shifts in leverage or equity base.

The financial data reflects several noteworthy trends over the examined periods.

Revenue

Revenue demonstrates a general upward trend from August 2020 through November 2021, growing from approximately $19.3 billion to $23.5 billion. Following this peak, there is a gradual decline observed until May 2023, where revenue drops below $22 billion. Subsequently, revenue fluctuates moderately, maintaining a range between $21.5 billion and $22.3 billion through November 2025, with a slight uptick at the end of the period in November 2025 reaching $23.5 billion. These fluctuations suggest periods of both growth and contraction, but overall revenue stabilizes around the low $22 billion mark in the latter years.

Net Property and Equipment

The net value of property and equipment shows a steady upward trajectory from $34.3 billion in August 2020 to a peak of approximately $41.5 billion by May 2024. After this peak, a modest decline occurs, with values marginally decreasing to around $41.3 billion by November 2025. This indicates continued investment in fixed assets over time, with a stabilization phase towards the end, possibly reflecting a plateau in capital expenditures or asset disposals.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio starts at 2.09 in August 2020, increasing gradually to a peak of approximately 2.45 by May 2021 and maintaining close to this level until August 2022. Beyond this point, the ratio declines steadily to around 2.11 by May 2024, indicating a possible decrease in efficiency with which fixed assets are used to generate revenue. The ratio then shows minor fluctuations with a slight recovery reaching 2.18 by November 2025. This pattern suggests that while asset base grew, the corresponding revenue generation per unit of asset initially improved but subsequently diminished over the longer term before modestly recovering.

In summary, the company exhibits growth in both revenue and asset base during the initial periods, followed by a stabilization or slight decline in revenue despite sustained investment in property and equipment. Efficiency in utilizing fixed assets to produce revenue improved initially but experienced a downward trend later, indicating potential operational challenges or changing market conditions affecting asset productivity. The modest recovery towards the end may imply adjusted strategies to enhance asset utilization.

The analysis of the quarterly financial data over the observed periods reveals several notable trends concerning revenue, net property and equipment, and net fixed asset turnover ratios.

Revenue Trends

Revenue exhibited a general upward trajectory from August 2020 through November 2021, increasing from approximately $19,321 million to $23,474 million. Following this growth phase, revenue fluctuated with a moderate downward trend starting in mid-2022, reaching lows near $21,681 million by August 2023. Subsequently, revenue showed minor fluctuations but largely stabilized within the $21,500 million to $22,400 million range through late 2025, with a slight uptick noted toward the end of the period.

Net Property and Equipment

The net property and equipment, inclusive of operating lease right-of-use assets, displayed a consistent incremental pattern throughout the entire timeframe. Beginning at around $48,758 million in August 2020, the value steadily climbed to peak near $58,775 million by November 2023. Following this peak, the asset base experienced marginal declines and minor fluctuations, settling in the range of approximately $57,506 million to $58,095 million in the later periods leading to November 2025.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio illustrates the efficiency of asset use in generating revenue. This ratio increased from 1.47 in August 2020 to a high of 1.71 around May 2022, indicating improved asset utilization efficiency. However, from mid-2022 onwards, a decline occurred, with the ratio dropping to a low near 1.50 by late 2023. In the subsequent quarters, the ratio slightly recovered and stabilized around the 1.50 to 1.57 range towards the end of the data set.

In summary, the company experienced revenue growth peaking in late 2021, followed by a period of stabilization and minor fluctuations. The asset base grew consistently throughout most of the period, suggesting continued investment in property and equipment. The turnover ratio's initial improvement implies enhanced efficiency in asset use initially, but the later decline and stabilization suggest that gains in asset utilization slowed and reached a more sustainable operational level in recent quarters.

The financial data reveals several notable trends across the reported periods. Revenue demonstrates a generally positive trajectory initially, with consistent quarterly increases from August 2020 through May 2022, peaking around that later period. However, following this peak, revenue exhibits some volatility with minor declines and recoveries, maintaining a relatively stable range toward the most recent quarters. This suggests a period of growth followed by stabilization and slight fluctuations in top-line performance.

Total assets show a steady upward trend over the entire timeframe, indicating ongoing asset accumulation or valuations increasing. The growth in asset base is gradual and sustained, which could imply continued investment or asset retention strategies. Despite minor quarterly variations, the overall trend is clearly increasing, signaling expansion or strengthening of the asset portfolio.

Total asset turnover, which measures efficiency in using assets to generate revenue, increases consistently in the early quarters, peaking around mid-2022. This rise indicates improving efficiency in asset utilization to produce revenue. From late 2022 onward, the turnover ratio stabilizes and slightly declines, then remains close to or just above 1.00, suggesting maintenance of efficiency levels with limited further improvement.

Revenue

Displays initial growth from 19,321 million US$ up to over 24,300 million US$ by mid-2022, followed by fluctuations with no clear upward or downward trend but maintaining a range around 22,000 to 23,500 million US$ in the most recent quarters.

Total Assets

Exhibit steady growth from approximately 77,600 million US$ to nearly 89,200 million US$, reflecting ongoing asset expansion and possibly strategic investments or capital accumulation.

Total Asset Turnover

Improves from 0.92 to a high of approximately 1.10 through early periods, indicating enhanced asset utilization efficiency, then stabilizes around 1.00 to 1.03 in later periods, suggesting a plateau in efficiency gains.

Overall, the company experienced growth in revenue and assets during the initial phase, coupled with increasing efficiency in asset use. More recent data points to stabilization in revenue and efficiency levels, while asset growth continues steadily, suggesting a mature operational phase with maintained asset investment but moderated revenue growth and stable asset productivity.

The financial analysis for the reviewed periods reveals fluctuations and general trends in key performance metrics, specifically revenue, common stockholders’ investment, and equity turnover.

Revenue

Revenue demonstrated an overall upward trajectory from the initial period, starting at 19,321 million US dollars and reaching a peak around the 24,394 million US dollars mark in the middle years. However, subsequent quarters exhibit a gradual decline, with several fluctuations, descending towards the low 21,000 million US dollar range in the latest observations. Despite intermittent increases, the revenue pattern suggests some volatility with a mild downward tendency in the most recent quarters.

Common stockholders’ investment

Investment by common stockholders exhibited a consistent increase over the majority of the observed periods. Beginning near 19,462 million US dollars, the investment climbed steadily, surpassing 28,000 million US dollars towards the most recent quarters. This indicates growing equity capital support or reinvestment through the period, reflecting confidence or capital inflow into the company’s stock. There is a minor deceleration or plateau in the late periods, but the overall long-term trend remains positive.

Equity turnover

The equity turnover ratio, which measures revenue generated per unit of equity, displayed relative stability within a narrow band. Starting at approximately 3.67, it experienced modest fluctuations through the periods, peaking temporarily around 3.9 before generally declining and stabilizing between 3.1 and 3.3 in the latest quarters. This decrease in ratio may point to less efficient use of equity capital to generate revenue in the latest periods compared to the earlier ones.

In summary, the company shows increasing common stockholders’ investment over time, suggesting strengthening shareholder equity base. However, the revenue trend, after reaching high points, shows some weakening in recent terms combined with a slightly declining equity turnover ratio. The data indicates potential challenges in converting the equity base into proportional revenue growth in the most current periods.