Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
FedEx Corp., profitability ratios
Based on: 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | FedEx Corp. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | FedEx Corp. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | FedEx Corp. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | FedEx Corp. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Operating Profit Margin
FedEx Corp., operating profit margin calculation, comparison to benchmarks
| May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 6,245 | 5,857 | 2,417 | 4,466 | 4,870 | 5,037 | |
| Revenue | 93,512 | 83,959 | 69,217 | 69,693 | 65,450 | 60,319 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 6.68% | 6.98% | 3.49% | 6.41% | 7.44% | 8.35% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| American Airlines Group Inc. | — | -3.54% | -60.11% | 6.70% | 5.96% | 9.61% | |
| CSX Corp. | — | 44.67% | 41.22% | 41.59% | 39.75% | 32.14% | |
| Union Pacific Corp. | — | 42.83% | 40.11% | 39.40% | 37.30% | 37.95% | |
| United Parcel Service Inc. | — | 13.17% | 9.08% | 10.52% | 9.77% | 11.43% | |
| Operating Profit Margin, Sector | |||||||
| Transportation | — | 13.26% | 5.90% | 12.92% | 12.88% | 14.10% | |
| Operating Profit Margin, Industry | |||||||
| Industrials | — | 11.18% | 4.89% | 11.95% | 13.10% | 13.08% | |
Based on: 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 6,245 ÷ 93,512 = 6.68%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | FedEx Corp. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Net Profit Margin
FedEx Corp., net profit margin calculation, comparison to benchmarks
| May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 3,826 | 5,231 | 1,286 | 540 | 4,572 | 2,997 | |
| Revenue | 93,512 | 83,959 | 69,217 | 69,693 | 65,450 | 60,319 | |
| Profitability Ratio | |||||||
| Net profit margin1 | 4.09% | 6.23% | 1.86% | 0.77% | 6.99% | 4.97% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| American Airlines Group Inc. | — | -6.67% | -51.25% | 3.68% | 3.17% | 4.55% | |
| CSX Corp. | — | 30.19% | 26.13% | 27.90% | 27.01% | 47.96% | |
| Union Pacific Corp. | — | 29.92% | 27.38% | 27.27% | 26.13% | 50.43% | |
| United Parcel Service Inc. | — | 13.25% | 1.59% | 5.99% | 6.67% | 7.45% | |
| Net Profit Margin, Sector | |||||||
| Transportation | — | 10.77% | 0.92% | 7.13% | 9.24% | 12.94% | |
| Net Profit Margin, Industry | |||||||
| Industrials | — | 6.98% | 2.18% | 6.04% | 5.42% | 6.67% | |
Based on: 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31).
1 2022 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,826 ÷ 93,512 = 4.09%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | FedEx Corp. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Return on Equity (ROE)
FedEx Corp., ROE calculation, comparison to benchmarks
| May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 3,826 | 5,231 | 1,286 | 540 | 4,572 | 2,997 | |
| Common stockholders’ investment | 24,939 | 24,168 | 18,295 | 17,757 | 19,416 | 16,073 | |
| Profitability Ratio | |||||||
| ROE1 | 15.34% | 21.64% | 7.03% | 3.04% | 23.55% | 18.65% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| American Airlines Group Inc. | — | — | — | — | — | 48.88% | |
| CSX Corp. | — | 28.03% | 21.11% | 28.11% | 26.34% | 37.21% | |
| Union Pacific Corp. | — | 46.06% | 31.54% | 32.65% | 29.21% | 43.10% | |
| United Parcel Service Inc. | — | 90.44% | 204.41% | 135.90% | 158.59% | 491.00% | |
| ROE, Sector | |||||||
| Transportation | — | 45.00% | 4.41% | 31.28% | 36.29% | 42.95% | |
| ROE, Industry | |||||||
| Industrials | — | 20.09% | 6.64% | 24.51% | 21.81% | 21.48% | |
Based on: 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31).
1 2022 Calculation
ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 3,826 ÷ 24,939 = 15.34%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | FedEx Corp. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Return on Assets (ROA)
FedEx Corp., ROA calculation, comparison to benchmarks
| May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 3,826 | 5,231 | 1,286 | 540 | 4,572 | 2,997 | |
| Total assets | 85,994 | 82,777 | 73,537 | 54,403 | 52,330 | 48,552 | |
| Profitability Ratio | |||||||
| ROA1 | 4.45% | 6.32% | 1.75% | 0.99% | 8.74% | 6.17% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| American Airlines Group Inc. | — | -3.00% | -14.33% | 2.81% | 2.33% | 3.73% | |
| CSX Corp. | — | 9.33% | 6.95% | 8.71% | 9.01% | 15.31% | |
| Union Pacific Corp. | — | 10.27% | 8.57% | 9.60% | 10.09% | 18.53% | |
| United Parcel Service Inc. | — | 18.57% | 2.15% | 7.67% | 9.58% | 10.81% | |
| ROA, Sector | |||||||
| Transportation | — | 8.19% | 0.62% | 5.85% | 7.75% | 10.89% | |
| ROA, Industry | |||||||
| Industrials | — | 4.11% | 1.10% | 3.73% | 3.54% | 4.11% | |
Based on: 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31).
1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 3,826 ÷ 85,994 = 4.45%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | FedEx Corp. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |