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: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
An analysis of profitability metrics from May 31, 2021, to May 31, 2026, reveals a general contraction in efficiency and returns following a peak in 2021. While there were periods of marginal recovery, the overall trajectory for all key profitability ratios indicates a shift toward lower, more stabilized levels compared to the initial reporting period.
- Operating Profit Margin
- The operating profit margin experienced a downward trend, declining from 6.98% in 2021 to 5.77% by 2026. A notable trough occurred in 2023 at 5.45%, followed by a temporary recovery to 6.34% in 2024. However, the subsequent two years show a steady decline, suggesting persistent pressure on operating costs relative to revenue.
- Net Profit Margin
- Net profit margins showed significant volatility, dropping sharply from 6.23% in 2021 to 4.09% in 2022. After this initial decline, the margin demonstrated a gradual upward trend, peaking at 4.94% in 2024 before stabilizing around 4.65% to 4.68% in the final two years of the period.
- Return on Equity (ROE)
- Return on equity saw a substantial decrease from 21.64% in 2021 to 15.34% in 2022. Following this drop, ROE remained relatively stagnant, fluctuating between 14.01% and 15.70%. The trend concludes with a gradual decline toward 14.01% in 2026, indicating a reduction in the efficiency of generating profits from shareholders' equity.
- Return on Assets (ROA)
- The return on assets followed a pattern similar to the net profit margin, falling from 6.32% in 2021 to 4.45% in 2022. A moderate recovery reached 4.98% in 2024, but the ratio subsequently retreated to 4.48% by 2026, reflecting a diminished capacity to generate earnings from the total asset base.
The convergence of these trends suggests that the high profitability observed in 2021 was an outlier. The subsequent stabilization of net profit margins and ROA, paired with a continuing decline in operating margins and ROE, indicates a challenging environment for maintaining historical levels of operational efficiency and capital returns.
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Return on Sales
Return on Investment
Operating Profit Margin
FedEx Corp., operating profit margin calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 5,463) | 5,217) | 5,559) | 4,912) | 6,245) | 5,857) | |
| Revenue | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 5.77% | 5.93% | 6.34% | 5.45% | 6.68% | 6.98% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Uber Technologies Inc. | — | 10.70% | 6.36% | 2.98% | -5.75% | -21.97% | |
| Union Pacific Corp. | — | 40.17% | 40.05% | 37.65% | 39.87% | 42.83% | |
| United Airlines Holdings Inc. | — | 7.98% | 8.93% | 7.84% | 5.20% | -4.15% | |
| United Parcel Service Inc. | — | 8.87% | 9.30% | 10.05% | 13.05% | 13.17% | |
| Operating Profit Margin, Sector | |||||||
| Transportation | — | 10.64% | 10.40% | 9.61% | 10.07% | 9.44% | |
| Operating Profit Margin, Industry | |||||||
| Industrials | — | 11.88% | 9.94% | 9.90% | 9.06% | 9.24% | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 5,463 ÷ 94,720 = 5.77%
2 Click competitor name to see calculations.
An analysis of the operational performance from 2021 to 2026 reveals a period of volatility in both top-line revenue and operational efficiency. While revenue demonstrates growth over the long term, the operating profit margin exhibits a general downward trajectory, suggesting that the growth in revenue has not been matched by a proportional increase in operating income.
- Revenue Trajectory
- Revenue grew from US$ 83,959 million in 2021 to a peak of US$ 93,512 million in 2022. This was followed by a period of contraction through 2024, where revenue declined to US$ 87,693 million. A subsequent recovery is observed, culminating in a period high of US$ 94,720 million by May 31, 2026.
- Operating Income Volatility
- Operating income peaked in 2022 at US$ 6,245 million but suffered a significant decrease to US$ 4,912 million in 2023. The subsequent years were characterized by fluctuations, with a recovery to US$ 5,559 million in 2024, a dip to US$ 5,217 million in 2025, and a final increase to US$ 5,463 million in 2026.
- Operating Profit Margin Trends
- The operating profit margin shows a general decline from its 2021 high of 6.98%. A notable trough occurred in 2023, with the margin dropping to 5.45%. Despite a partial recovery to 6.34% in 2024, the margin continued to compress in the following two years, ending at 5.77% in 2026. The fact that the 2026 margin is lower than the 2021 margin, despite higher total revenue, indicates a decline in the company's ability to convert sales into operating profit.
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Net Profit Margin
FedEx Corp., net profit margin calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,433) | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | |
| Revenue | 94,720) | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 4.68% | 4.65% | 4.94% | 4.41% | 4.09% | 6.23% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Uber Technologies Inc. | — | 19.33% | 22.41% | 5.06% | -28.68% | -2.84% | |
| Union Pacific Corp. | — | 29.12% | 27.82% | 26.45% | 28.13% | 29.92% | |
| United Airlines Holdings Inc. | — | 5.68% | 5.52% | 4.87% | 1.64% | -7.97% | |
| United Parcel Service Inc. | — | 6.28% | 6.35% | 7.37% | 11.51% | 13.25% | |
| Net Profit Margin, Sector | |||||||
| Transportation | — | 9.68% | 9.82% | 7.28% | 4.73% | 9.05% | |
| Net Profit Margin, Industry | |||||||
| Industrials | — | 9.59% | 8.06% | 8.32% | 5.04% | 5.85% | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,433 ÷ 94,720 = 4.68%
2 Click competitor name to see calculations.
Analysis of the period from May 31, 2021, to May 31, 2026, reveals a period of initial volatility in profitability followed by a phase of relative stabilization. The net profit margin experienced a significant contraction between 2021 and 2022, after which it entered a period of marginal fluctuations within a narrow range.
- Net Profit Margin Trends
- A peak margin of 6.23% was recorded on May 31, 2021, followed by a sharp decline to 4.09% by May 31, 2022. Following this trough, a gradual recovery is observed, peaking again at 4.94% in 2024 before stabilizing around 4.68% by May 31, 2026. The overall trajectory suggests that while the margins have not returned to 2021 levels, a baseline of approximately 4.6% to 4.9% has been established.
- Revenue and Net Income Divergence
- An inverse relationship is observed between revenue and net income during the 2021-2022 transition. While revenue increased from 83,959 million to 93,512 million, net income decreased from 5,231 million to 3,826 million. This divergence indicates that the growth in top-line revenue was offset by a disproportionate increase in operating expenses or a reduction in pricing efficiency during that period.
- Profitability Stability Analysis
- From 2023 through 2026, the net profit margin demonstrates low volatility, remaining between 4.41% and 4.94%. Despite fluctuations in revenue—which dipped to 87,693 million in 2024 before rising to 94,720 million by 2026—the net income has remained relatively consistent, ranging between 3,972 million and 4,433 million. This suggests a stabilized cost structure that scales linearly with revenue growth in the latter part of the analyzed period.
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Return on Equity (ROE)
FedEx Corp., ROE calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,433) | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | |
| Common stockholders’ investment | 31,647) | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | |
| Profitability Ratio | |||||||
| ROE1 | 14.01% | 14.58% | 15.70% | 15.23% | 15.34% | 21.64% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Uber Technologies Inc. | — | 37.18% | 45.72% | 16.77% | -124.54% | -3.43% | |
| Union Pacific Corp. | — | 38.65% | 39.95% | 43.14% | 57.54% | 46.06% | |
| United Airlines Holdings Inc. | — | 21.94% | 24.84% | 28.08% | 10.69% | -39.05% | |
| United Parcel Service Inc. | — | 34.34% | 34.59% | 38.76% | 58.36% | 90.44% | |
| ROE, Sector | |||||||
| Transportation | — | 28.74% | 31.30% | 27.38% | 19.64% | 30.78% | |
| ROE, Industry | |||||||
| Industrials | — | 27.59% | 23.51% | 27.70% | 15.38% | 15.38% | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 4,433 ÷ 31,647 = 14.01%
2 Click competitor name to see calculations.
The financial performance from May 31, 2021, to May 31, 2026, is characterized by a contraction in profitability efficiency despite a steady increase in the capital base. While net income has remained relatively stable after an initial decline, the continuous growth of common stockholders' investment has exerted downward pressure on the return on equity.
- Net Income Trends
- A peak of US$ 5,231 million was recorded in 2021, followed by a sharp decrease to US$ 3,826 million in 2022. Subsequent years show moderate fluctuations, with a gradual recovery reaching US$ 4,433 million by 2026. This indicates a period of earnings stabilization following a volatile shift between 2021 and 2022.
- Equity Growth
- Common stockholders' investment has demonstrated consistent year-over-year growth throughout the analyzed period. The investment rose from US$ 24,168 million in 2021 to US$ 31,647 million in 2026. This sustained expansion of the equity base reflects a steady accumulation of capital.
- Return on Equity (ROE) Analysis
- ROE experienced a significant decline from 21.64% in 2021 to 15.34% in 2022. Following this initial drop, the ratio remained relatively stable, peaking slightly at 15.70% in 2024 before trending downward to 14.01% by 2026. The overall decline in ROE is primarily driven by the fact that the growth in stockholders' equity has outpaced the growth in net income, resulting in a diminished rate of return on the shareholders' investment over time.
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Return on Assets (ROA)
FedEx Corp., ROA calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,433) | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | |
| Total assets | 98,937) | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | |
| Profitability Ratio | |||||||
| ROA1 | 4.48% | 4.67% | 4.98% | 4.56% | 4.45% | 6.32% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Uber Technologies Inc. | — | 16.27% | 19.23% | 4.88% | -28.47% | -1.28% | |
| Union Pacific Corp. | — | 10.24% | 9.96% | 9.50% | 10.69% | 10.27% | |
| United Airlines Holdings Inc. | — | 4.39% | 4.25% | 3.68% | 1.09% | -2.88% | |
| United Parcel Service Inc. | — | 7.62% | 8.25% | 9.47% | 16.24% | 18.57% | |
| ROA, Sector | |||||||
| Transportation | — | 8.19% | 8.53% | 6.44% | 4.34% | 6.88% | |
| ROA, Industry | |||||||
| Industrials | — | 6.35% | 5.24% | 5.61% | 3.31% | 3.40% | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 2026 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,433 ÷ 98,937 = 4.48%
2 Click competitor name to see calculations.
The return on assets (ROA) exhibits a general decline from a peak in 2021, followed by a period of relative stability characterized by minor fluctuations. While net income recovered partially from its 2022 low, the continued expansion of the asset base has limited the recovery of the ROA percentage.
- Asset Base Expansion
- Total assets grew steadily from US$ 82,777 million in 2021 to US$ 98,937 million by 2026. The most significant increase occurred between 2025 and 2026. This expansion of the balance sheet has outpaced the growth in net income, resulting in a dilution of the ROA over the analyzed period.
- Net Income Volatility
- Net income experienced a sharp decrease between 2021 and 2022, falling from US$ 5,231 million to US$ 3,826 million. Although a recovery trend was observed through 2024, a subsequent dip in 2025 and a final increase in 2026 to US$ 4,433 million indicate inconsistent earnings growth, which directly contributed to the volatility of the ROA.
- ROA Performance Trend
- A significant reduction in ROA is observed between 2021 (6.32%) and 2022 (4.45%). From 2022 to 2026, the ratio remained within a narrow range between 4.45% and 4.98%. The inability to return to the 2021 level suggests a decrease in the efficiency of asset utilization relative to profit generation.
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