.Profitability Analysis
Difficulty: Beginner
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios (Summary)
FedEx Corp., profitability ratios
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Return on Sales | |||||||
| | Gross profit margin | % | % | % | % | % | % |
| | Operating profit margin | % | % | % | % | % | % |
| | Net profit margin | % | % | % | % | % | % |
| Return on Investment | |||||||
| | Return on equity (ROE) | % | % | % | % | % | % |
| | Return on assets (ROA) | % | % | % | % | % | % |
Source: Based on data from FedEx Corp. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | FedEx Corp.'s gross profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | FedEx Corp.'s operating profit margin improved from 2015 to 2016 and from 2016 to 2017. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | FedEx Corp.'s net profit margin improved from 2015 to 2016 and from 2016 to 2017. |
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | FedEx Corp.'s ROE improved from 2015 to 2016 and from 2016 to 2017. |
| ROA | A profitability ratio calculated as net income divided by total assets. | FedEx Corp.'s ROA improved from 2015 to 2016 and from 2016 to 2017. |
Gross Profit Margin
FedEx Corp., gross profit margin calculation
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Gross profit | ||||||
| | Revenues | ||||||
| Ratio | |||||||
| | Gross profit margin1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors | |||||||
| Union Pacific Corp. | % | % | % | % | % | % | |
| United Parcel Service Inc. | % | % | % | % | % | % | |
Source: Based on data from FedEx Corp. Annual Reports
2017 Calculations
1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | FedEx Corp.'s gross profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Operating Profit Margin
FedEx Corp., operating profit margin calculation, comparison to benchmarks
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Operating income | ||||||
| | Revenues | ||||||
| Ratio | |||||||
| | Operating profit margin1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors | |||||||
| Union Pacific Corp. | % | % | % | % | % | % | |
| United Parcel Service Inc. | % | % | % | % | % | % | |
| Operating Profit Margin, Sector | |||||||
| Industrial Transportation | % | % | % | % | % | % | |
| Operating Profit Margin, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from FedEx Corp. Annual Reports
2017 Calculations
1 Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | FedEx Corp.'s operating profit margin improved from 2015 to 2016 and from 2016 to 2017. |
Net Profit Margin
FedEx Corp., net profit margin calculation, comparison to benchmarks
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Net income | ||||||
| | Revenues | ||||||
| Ratio | |||||||
| | Net profit margin1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| Net Profit Margin, Competitors | |||||||
| Union Pacific Corp. | % | % | % | % | % | % | |
| United Parcel Service Inc. | % | % | % | % | % | % | |
| Net Profit Margin, Sector | |||||||
| Industrial Transportation | % | % | % | % | % | % | |
| Net Profit Margin, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from FedEx Corp. Annual Reports
2017 Calculations
1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | FedEx Corp.'s net profit margin improved from 2015 to 2016 and from 2016 to 2017. |
Return on Equity (ROE)
FedEx Corp., ROE calculation, comparison to benchmarks
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Net income | ||||||
| | Common stockholders' investment | ||||||
| Ratio | |||||||
| | ROE1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| ROE, Competitors | |||||||
| Union Pacific Corp. | % | % | % | % | % | % | |
| United Parcel Service Inc. | % | % | % | % | % | % | |
| ROE, Sector | |||||||
| Industrial Transportation | % | % | % | % | % | % | |
| ROE, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from FedEx Corp. Annual Reports
2017 Calculations
1 ROE = 100 × Net income ÷ Common stockholders' investment
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | FedEx Corp.'s ROE improved from 2015 to 2016 and from 2016 to 2017. |
Return on Assets (ROA)
FedEx Corp., ROA calculation, comparison to benchmarks
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Net income | ||||||
| | Total assets | ||||||
| Ratio | |||||||
| | ROA1 | % | % | % | % | % | % |
| Benchmarks | |||||||
| ROA, Competitors | |||||||
| Union Pacific Corp. | % | % | % | % | % | % | |
| United Parcel Service Inc. | % | % | % | % | % | % | |
| ROA, Sector | |||||||
| Industrial Transportation | % | % | % | % | % | % | |
| ROA, Industry | |||||||
| Industrials | % | % | % | % | % | % | |
Source: Based on data from FedEx Corp. Annual Reports
2017 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | FedEx Corp.'s ROA improved from 2015 to 2016 and from 2016 to 2017. |
