Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
FedEx Corp., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
The profitability ratios exhibit a distinct cyclical pattern characterized by a significant contraction beginning in mid-2022, reaching a trough in February 2023, followed by a period of moderate recovery and subsequent stabilization through May 2026.
- Operating Profit Margin
- A period of relative stability is observed from August 2021 through August 2022, with margins fluctuating between 6.37% and 6.68%. A downward trend ensued, culminating in a low of 5.45% in May 2023. While a recovery phase pushed the margin back to 6.34% by May 2024, the metric remained volatile, experiencing a secondary dip to 5.64% in November 2024 before climbing to 6.27% in November 2025 and finally settling at 5.77% in May 2026.
- Net Profit Margin
- The net profit margin demonstrates a sharp decline from an initial high of 5.88% in August 2021 to a minimum of 3.23% in February 2023. Following this low point, a steady recovery is evident, with margins returning to the 4.41% to 5.02% range by early 2024. For the remainder of the period, the margin maintained a tight corridor of stability, generally fluctuating between 4.45% and 4.88%.
- Return on Equity (ROE)
- ROE experienced the most pronounced volatility among the measured ratios. Initial values exceeded 20% in late 2021 and early 2022, followed by a steep contraction to 12.10% by February 2023. A partial rebound occurred, peaking at 16.66% in February 2024. The latter part of the observed period shows a stabilization trend, with ROE consistently hovering between 14% and 15% from August 2024 through May 2026.
- Return on Assets (ROA)
- The trend for ROA closely mirrors the movement of the net profit margin. After starting at 6.21% in August 2021, it declined to a low of 3.49% in February 2023. A subsequent recovery brought the ratio back to 5.10% by February 2024, after which it entered a phase of stability, remaining within the 4.48% to 4.86% range through May 2026.
Overall, the synchronization of the troughs across all four ratios in February 2023 indicates a systemic impact on profitability during that period. The transition from high volatility in 2021-2023 to a more consistent, albeit lower, performance level in 2024-2026 suggests a shift toward a more stable operational equilibrium.
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Return on Sales
Return on Investment
Operating Profit Margin
FedEx Corp., operating profit margin calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Operating income | 1,551) | 1,348) | 1,378) | 1,186) | 1,793) | 1,292) | 1,052) | 1,080) | 1,555) | 1,243) | 1,276) | 1,485) | 1,503) | 1,042) | 1,176) | 1,191) | 1,924) | 1,326) | 1,597) | 1,398) | ||||||
| Revenue | 25,007) | 24,000) | 23,469) | 22,244) | 22,220) | 22,160) | 21,967) | 21,579) | 22,109) | 21,738) | 22,165) | 21,681) | 21,930) | 22,169) | 22,814) | 23,242) | 24,394) | 23,641) | 23,474) | 22,003) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | 5.77% | 6.21% | 6.27% | 6.01% | 5.93% | 5.67% | 5.64% | 5.88% | 6.34% | 6.29% | 6.03% | 5.88% | 5.45% | 5.76% | 5.97% | 6.37% | 6.68% | 6.67% | 6.47% | 6.54% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 11.66% | 10.70% | 9.19% | 9.53% | 8.49% | 6.36% | 6.39% | 5.03% | 4.00% | 2.98% | 0.88% | -1.64% | -4.76% | -5.75% | -7.71% | -9.07% | -13.04% | ||||||
| Union Pacific Corp. | — | — | 40.03% | 40.21% | 40.17% | 40.62% | 40.33% | 40.06% | 40.05% | 39.51% | 38.76% | 38.02% | 37.65% | 37.64% | 38.53% | 39.22% | 39.87% | 40.71% | 41.59% | 42.90% | ||||||
| United Airlines Holdings Inc. | — | — | 7.75% | 8.44% | 7.98% | 8.27% | 8.62% | 9.71% | 8.93% | 8.20% | 8.56% | 7.94% | 7.84% | 8.74% | 8.47% | 7.52% | 5.20% | 1.35% | 0.37% | -3.51% | ||||||
| United Parcel Service Inc. | — | — | — | 8.46% | 8.87% | 9.18% | 9.30% | 9.37% | 9.30% | 8.84% | 8.24% | 9.15% | 10.05% | 10.59% | 12.09% | 12.52% | 13.05% | 13.64% | 13.56% | 13.46% | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ4 2026
+ Operating incomeQ3 2026
+ Operating incomeQ2 2026
+ Operating incomeQ1 2026)
÷ (RevenueQ4 2026
+ RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026)
= 100 × (1,551 + 1,348 + 1,378 + 1,186)
÷ (25,007 + 24,000 + 23,469 + 22,244)
= 5.77%
2 Click competitor name to see calculations.
The operating profit margin exhibits a period of volatility characterized by an initial peak, a significant contraction, and subsequent intermittent recoveries over the analyzed timeframe.
- Operating Profit Margin Trends
- The margin remained relatively stable between 6.47% and 6.68% from August 2021 through May 2022. A downward trend followed, with the margin reaching a trough of 5.45% by May 2023. A recovery phase was observed between November 2023 and May 2024, where the margin climbed back to 6.34%. Subsequent performance remained inconsistent, fluctuating between 5.64% and 6.27% through February 2026, before declining to 5.77% in May 2026.
- Revenue and Income Correlation
- Revenue demonstrated an overall growth pattern, peaking at 25,007 million US dollars in May 2026. However, operating income did not consistently scale in proportion to revenue growth. While revenue reached its highest point in the final quarter, the operating profit margin contracted from 6.21% in February 2026 to 5.77% in May 2026, suggesting that operating expenses increased at a rate exceeding revenue growth during this period.
- Profitability Volatility and Cyclicality
- Operating income displays recurring peaks during the May quarters, most notably in May 2022 (1,924 million US dollars) and May 2025 (1,793 million US dollars). Despite these absolute increases in income, the corresponding margins often failed to maintain previous highs, indicating a systemic challenge in converting increased volume into higher percentage profitability.
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Net Profit Margin
FedEx Corp., net profit margin calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income | 1,597) | 1,056) | 956) | 824) | 1,648) | 909) | 741) | 794) | 1,474) | 879) | 900) | 1,078) | 1,538) | 771) | 788) | 875) | 558) | 1,112) | 1,044) | 1,112) | ||||||
| Revenue | 25,007) | 24,000) | 23,469) | 22,244) | 22,220) | 22,160) | 21,967) | 21,579) | 22,109) | 21,738) | 22,165) | 21,681) | 21,930) | 22,169) | 22,814) | 23,242) | 24,394) | 23,641) | 23,474) | 22,003) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | 4.68% | 4.88% | 4.81% | 4.65% | 4.65% | 4.46% | 4.45% | 4.62% | 4.94% | 5.02% | 4.87% | 4.71% | 4.41% | 3.23% | 3.54% | 3.79% | 4.09% | 5.60% | 5.49% | 5.88% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 15.91% | 19.33% | 33.54% | 26.68% | 27.07% | 22.41% | 10.49% | 5.02% | 3.60% | 5.06% | 2.93% | -1.07% | -9.95% | -28.68% | -30.45% | -39.39% | -29.52% | ||||||
| Union Pacific Corp. | — | — | 28.85% | 29.20% | 29.12% | 28.73% | 28.43% | 27.77% | 27.82% | 27.33% | 26.90% | 26.52% | 26.45% | 26.37% | 27.18% | 27.91% | 28.13% | 28.95% | 29.23% | 30.06% | ||||||
| United Airlines Holdings Inc. | — | — | 5.56% | 6.06% | 5.68% | 5.64% | 5.71% | 6.34% | 5.52% | 4.94% | 5.28% | 4.90% | 4.87% | 5.45% | 5.24% | 3.93% | 1.64% | -1.85% | -3.43% | -6.85% | ||||||
| United Parcel Service Inc. | — | — | — | 5.94% | 6.28% | 6.15% | 6.34% | 6.44% | 6.35% | 6.25% | 5.87% | 6.60% | 7.37% | 9.19% | 10.41% | 10.90% | 11.51% | 11.07% | 10.92% | 10.90% | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
Net profit margin = 100
× (Net incomeQ4 2026
+ Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026)
÷ (RevenueQ4 2026
+ RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026)
= 100 × (1,597 + 1,056 + 956 + 824)
÷ (25,007 + 24,000 + 23,469 + 22,244)
= 4.68%
2 Click competitor name to see calculations.
The financial performance of the company is characterized by a distinct period of margin contraction followed by a recovery and a subsequent phase of relative stability. The net profit margin exhibited significant volatility between August 2021 and February 2024, before entering a period of consolidation through May 2026.
- Margin Erosion and Trough
- A sustained downward trend in net profit margin is observed from August 2021, where the margin stood at 5.88%, reaching a trough of 3.23% by February 2023. This decline occurred despite revenue remaining relatively stable or increasing during the initial phase of the downturn, suggesting that operating costs or other expenses grew at a faster rate than top-line revenue during this window.
- Recovery and Stabilization Phase
- A recovery phase began in May 2023, with the net profit margin climbing from 4.41% to a peak of 5.02% in February 2024. Following this recovery, the margin entered a stabilization phase, fluctuating within a narrow band between 4.45% and 4.88% from May 2024 through May 2026. This indicates a successful realignment of cost structures relative to revenue generation.
- Revenue and Net Income Correlation
- Revenue showed a general contraction between May 2022 and August 2023, followed by a growth trend that culminated in a peak of 25,007 million US$ in May 2026. Notably, net income exhibits a recurring seasonal pattern, with significant peaks consistently occurring in the May quarters (e.g., 1,538 million in May 2023, 1,474 million in May 2024, 1,648 million in May 2025, and 1,597 million in May 2026), which periodically bolsters the net profit margin.
- Long-term Profitability Trajectory
- While the net profit margin has not returned to the highs of August 2021, the trajectory from February 2023 onward demonstrates a resilient recovery. The ability to maintain margins near 4.7% while expanding revenue toward 25 billion US$ suggests improved operational efficiency and a stabilized pricing strategy in the latter half of the analyzed period.
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Return on Equity (ROE)
FedEx Corp., ROE calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income | 1,597) | 1,056) | 956) | 824) | 1,648) | 909) | 741) | 794) | 1,474) | 879) | 900) | 1,078) | 1,538) | 771) | 788) | 875) | 558) | 1,112) | 1,044) | 1,112) | ||||||
| Common stockholders’ investment | 31,647) | 29,804) | 28,140) | 27,771) | 28,074) | 26,708) | 26,460) | 27,176) | 27,582) | 26,375) | 26,766) | 26,534) | 26,088) | 24,733) | 24,115) | 25,140) | 24,939) | 24,526) | 24,940) | 24,321) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | 14.01% | 15.04% | 15.41% | 14.84% | 14.58% | 14.67% | 14.69% | 14.89% | 15.70% | 16.66% | 16.02% | 15.73% | 15.23% | 12.10% | 13.82% | 14.28% | 15.34% | 20.94% | 19.71% | 20.96% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 34.50% | 37.18% | 59.15% | 55.87% | 55.91% | 45.72% | 29.78% | 16.28% | 12.57% | 16.77% | 11.26% | -4.31% | -44.86% | -124.54% | -141.59% | -151.07% | -70.86% | ||||||
| Union Pacific Corp. | — | — | 35.46% | 37.15% | 38.65% | 40.75% | 42.66% | 41.97% | 39.95% | 40.02% | 39.38% | 40.79% | 43.14% | 45.45% | 51.02% | 56.19% | 57.54% | 60.21% | 53.89% | 57.26% | ||||||
| United Airlines Holdings Inc. | — | — | 20.94% | 23.09% | 21.94% | 23.02% | 24.75% | 29.01% | 24.84% | 24.17% | 27.89% | 29.26% | 28.08% | 32.32% | 34.60% | 28.79% | 10.69% | -15.35% | -30.80% | -54.75% | ||||||
| United Parcel Service Inc. | — | — | — | 33.30% | 34.34% | 34.77% | 36.38% | 37.39% | 34.59% | 33.61% | 30.85% | 35.05% | 38.76% | 44.64% | 50.02% | 53.80% | 58.36% | 65.94% | 67.12% | 69.80% | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
ROE = 100
× (Net incomeQ4 2026
+ Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026)
÷ Common stockholders’ investment
= 100 × (1,597 + 1,056 + 956 + 824)
÷ 31,647 = 14.01%
2 Click competitor name to see calculations.
The return on equity (ROE) exhibits a cyclical trajectory characterized by an initial period of contraction, a moderate recovery, and a subsequent phase of stabilization. From August 2021 to February 2023, ROE declined from a peak of 20.96% to a low of 12.10%, indicating a reduction in the efficiency of profit generation relative to shareholder investment during this window.
- Return on Equity Trends
- Following the low point in early 2023, ROE entered a recovery phase, reaching 16.66% by February 2024. In the subsequent period leading up to May 2026, the ratio remained relatively stable, oscillating within a narrow range between 14.01% and 15.70%. This stabilization suggests a transition toward a more consistent, albeit lower, return profile compared to the levels observed in 2021.
- Net Income Volatility
- Net income demonstrates significant quarterly fluctuations, which served as the primary driver for ROE volatility. Periodic peaks in net income—most notably in May 2023, May 2024, and May 2025—provided temporary lifts to the ROE. However, the absence of a sustained upward trend in quarterly earnings prevented the ROE from returning to its initial 20% threshold.
- Equity Base Expansion
- Common stockholders' investment showed a steady long-term increase, growing from 24,321 million in August 2021 to 31,647 million by May 2026. The expansion of the equity base increased the denominator of the ROE calculation, which exerted downward pressure on the ratio. Consequently, the growth in equity required higher absolute net income levels just to maintain a constant ROE percentage, contributing to the observed stabilization at lower levels in the latter half of the period.
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Return on Assets (ROA)
FedEx Corp., ROA calculation (quarterly data)
| May 31, 2026 | Feb 28, 2026 | Nov 30, 2025 | Aug 31, 2025 | May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income | 1,597) | 1,056) | 956) | 824) | 1,648) | 909) | 741) | 794) | 1,474) | 879) | 900) | 1,078) | 1,538) | 771) | 788) | 875) | 558) | 1,112) | 1,044) | 1,112) | ||||||
| Total assets | 98,937) | 94,733) | 89,181) | 88,416) | 87,627) | 85,043) | 85,481) | 86,711) | 87,007) | 86,114) | 88,051) | 87,576) | 87,143) | 85,775) | 85,591) | 85,826) | 85,994) | 84,108) | 84,247) | 82,048) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | 4.48% | 4.73% | 4.86% | 4.66% | 4.67% | 4.61% | 4.55% | 4.67% | 4.98% | 5.10% | 4.87% | 4.77% | 4.56% | 3.49% | 3.89% | 4.18% | 4.45% | 6.11% | 5.84% | 6.21% | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||
| Uber Technologies Inc. | — | — | — | 14.26% | 16.27% | 26.27% | 22.55% | 23.26% | 19.23% | 9.34% | 4.84% | 3.51% | 4.88% | 2.93% | -1.09% | -10.38% | -28.47% | -28.43% | -32.45% | -19.26% | ||||||
| Union Pacific Corp. | — | — | 10.29% | 10.36% | 10.24% | 10.27% | 10.11% | 9.83% | 9.96% | 9.82% | 9.58% | 9.50% | 9.50% | 9.57% | 10.19% | 10.61% | 10.69% | 10.82% | 10.63% | 10.64% | ||||||
| United Airlines Holdings Inc. | — | — | 4.14% | 4.53% | 4.39% | 4.32% | 4.29% | 4.81% | 4.25% | 3.81% | 4.01% | 3.74% | 3.68% | 3.91% | 3.64% | 2.73% | 1.09% | -1.09% | -1.73% | -2.87% | ||||||
| United Parcel Service Inc. | — | — | — | 7.31% | 7.62% | 7.71% | 8.08% | 8.55% | 8.25% | 8.30% | 7.57% | 8.76% | 9.47% | 12.17% | 14.23% | 14.93% | 16.24% | 16.09% | 15.60% | 15.35% | ||||||
Based on: 10-K (reporting date: 2026-05-31), 10-Q (reporting date: 2026-02-28), 10-Q (reporting date: 2025-11-30), 10-Q (reporting date: 2025-08-31), 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31).
1 Q4 2026 Calculation
ROA = 100
× (Net incomeQ4 2026
+ Net incomeQ3 2026
+ Net incomeQ2 2026
+ Net incomeQ1 2026)
÷ Total assets
= 100 × (1,597 + 1,056 + 956 + 824)
÷ 98,937 = 4.48%
2 Click competitor name to see calculations.
The analysis of the Return on Assets (ROA) reveals a period of initial contraction followed by a sustained phase of stabilization. The ratio experienced a significant downward trajectory from a peak of 6.21% in August 2021 to a low of 3.49% by February 2023. Following this decline, the ROA recovered and maintained a consistent range between 4.48% and 5.10% through May 2026.
- ROA Volatility and Trends
- A marked decrease in asset efficiency is observed between August 2021 and February 2023, where the ROA fell by approximately 272 basis points. This decline coincided with a period of fluctuating net income, specifically hitting a low of 558 million US$ in May 2022. From May 2023 onward, the ratio stabilized, oscillating within a narrow band, suggesting a more predictable relationship between earnings and the asset base.
- Net Income Patterns
- Earnings exhibit a recurring seasonal pattern, with notable peaks occurring consistently in May of each year (e.g., 1,538 million US$ in 2023, 1,474 million US$ in 2024, and 1,648 million US$ in 2025). These surges in profitability provide temporary uplifts to the ROA, although the magnitude of these spikes has not been sufficient to return the ratio to its 2021 levels.
- Asset Base Expansion
- Total assets grew steadily from 82,048 million US$ in August 2021 to 98,937 million US$ by May 2026. This expansion of the balance sheet creates a higher threshold for net income growth to maintain or improve the ROA. The increase in assets during the final quarters of the period, particularly from November 2024 onwards, corresponds with a slight softening of the ROA toward 4.48%, indicating that asset growth is currently outpacing proportional earnings growth.
- Overall Profitability Efficiency
- While the company successfully arrested the decline observed in 2022, the long-term trend indicates a structural shift in asset utilization efficiency. The transition from a 6% ROA environment to a 4-5% ROA environment suggests a change in the operating leverage or a strategic shift toward a more asset-heavy infrastructure that has yet to yield higher marginal returns.
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