FedEx Corp. (NYSE:FDX)

Operating Profit Margin

The operating profit margin exhibited volatility over the observed period. It started at 6.41% in 2019, dropped significantly to 3.49% in 2020, then sharply increased to 6.98% in 2021. This positive trend was slightly reversed in subsequent years with a decline to 6.68% in 2022 and further down to 5.45% in 2023, before recovering to 6.34% in 2024. Overall, the margin shows a capacity for recovery after downturns, though the rate has fluctuated notably.

Net Profit Margin

The net profit margin demonstrated a consistent upward trend from 2019 through 2024. Beginning at a low 0.77% in 2019, it more than doubled to 1.86% in 2020, followed by a significant leap to 6.23% in 2021. After a moderated decline to 4.09% in 2022, the margin increased again to 4.41% in 2023 and reached 4.94% in 2024. This pattern indicates improving profitability at the net level, despite some year-to-year fluctuations.

Return on Equity (ROE)

ROE showed substantial growth early in the period, moving from a modest 3.04% in 2019 to a peak of 21.64% in 2021. After this peak, ROE declined sharply to 15.34% in 2022 and remained relatively stable around 15.2% to 15.7% in the following years. The data suggest that the company achieved significant efficiency in generating shareholder returns by 2021 but has since stabilized at a lower, though still strong, level.

Return on Assets (ROA)

ROA trends generally parallel those of ROE, reflecting improved asset utilization over time. Starting at 0.99% in 2019, it increased steadily to 1.75% in 2020 and further jumped to 6.32% in 2021. After declining to 4.45% in 2022, ROA experienced slight gains to 4.56% in 2023 and 4.98% in 2024. The overall increase points to enhanced efficiency in using assets to generate profits, albeit with some volatility in recent years.

The financial data indicates several notable trends over the six-year period ending May 31, 2024.

Revenue

Revenue showed a generally positive trajectory from 2019 to 2022, increasing from approximately $69,693 million in 2019 to a peak of $93,512 million in 2022. However, after 2022, revenue experienced a decline, falling to $90,155 million in 2023, and further down to $87,693 million in 2024. This suggests a potential softening of sales or demand in the most recent two years after several years of growth.

Operating Income

Operating income exhibited greater volatility compared to revenue. It declined sharply from $4,466 million in 2019 to $2,417 million in 2020, likely reflecting economic challenges in that period. Subsequently, operating income rebounded strongly, reaching $5,857 million in 2021 and $6,245 million in 2022, surpassing the 2019 figure. After 2022, operating income decreased to $4,912 million in 2023 but then improved again to $5,559 million in 2024. This fluctuation suggests operational profitability faced challenges, particularly in 2020, but showed recovery and resilience in subsequent years despite recent dips.

Operating Profit Margin

The operating profit margin mirrored the fluctuations seen in operating income. Starting at 6.41% in 2019, it fell significantly to 3.49% in 2020, reflecting reduced efficiency or increased costs relative to revenue. Margin improved markedly in 2021 to 6.98%, then slightly dipped to 6.68% in 2022. The margin reduced again to 5.45% in 2023 before rising to 6.34% in 2024. These variations indicate changes in cost management, pricing power, or business mix impacting profitability margins over time.

Overall, the data reflects a period of disrupted profitability and revenue impact around 2020, followed by recovery and growth until 2022. The subsequent decline in revenue and margin in 2023 suggests emerging challenges, though some recovery of operating income and margin in 2024 points to ongoing efforts to stabilize financial performance.

Revenue

Revenue exhibited fluctuations over the observed periods. It slightly decreased from $69,693 million in 2019 to $69,217 million in 2020, followed by a notable increase to $83,959 million in 2021 and further growth to a peak of $93,512 million in 2022. Subsequently, revenue experienced a decline to $90,155 million in 2023 and continued its downward trend to $87,693 million in 2024.

Net Income

Net income showed significant variability during the period. It increased from $540 million in 2019 to $1,286 million in 2020 and surged to $5,231 million in 2021, representing a substantial improvement. However, net income declined to $3,826 million in 2022, followed by a slight recovery to $3,972 million in 2023 and further growth to $4,331 million in 2024.

Net Profit Margin

The net profit margin followed a generally upward trend over the years. Starting at a low 0.77% in 2019, it increased to 1.86% in 2020 and reached a peak of 6.23% in 2021. It then decreased to 4.09% in 2022, and subsequently showed gradual improvements to 4.41% in 2023 and 4.94% in 2024.

Overall Observations

The financial data indicate a period of strong profitability and revenue growth culminating in 2021, with net income and profit margins reaching their highest levels. Despite revenue peaking in 2022, net income and profit margin experienced declines in that year, suggesting margin pressure or increased costs. The recovery in net income and profit margin from 2023 onward, despite a continuing decline in revenue, may indicate improved operational efficiency or cost management during the latter periods.

Net Income

Net income exhibited a generally upward trajectory from 2019 to 2024, with a notable peak in 2021 at 5231 million US dollars. After this peak, there was a substantial decline in 2022 to 3826 million, followed by a gradual recovery to 4331 million by 2024. The data indicates volatility in net income, with significant growth early on and a partial rebound after a dip.

Common Stockholders’ Investment

Common stockholders' investment consistently increased throughout the entire period, rising steadily from 17757 million US dollars in 2019 to 27582 million in 2024. This suggests ongoing capital infusion or retained earnings being reinvested, reflecting strengthening equity participation by common shareholders over time.

Return on Equity (ROE)

The return on equity percentage showed a clear increase from 3.04% in 2019 to a peak of 21.64% in 2021, mirroring the spike in net income during that year. Subsequently, the ROE decreased to approximately 15% in 2022 and maintained relative stability through 2024, ending at 15.7%. This signifies that while profitability relative to equity declined from peak efficiency, it remains significantly higher than the initial years, indicating improved overall financial performance compared to 2019.

Overall Trends and Insights

The company demonstrated an overall growth in net income and equity from 2019 through 2024, although net income experienced a drop after 2021. The increasing common stockholders' investment reflects confidence and capital growth, which likely supports sustained profitability. The ROE trends correspond closely with net income fluctuations, evidencing variations in profit generated on shareholder equity but remaining consistently above early period levels, indicating enhanced operational efficiency or profitability management in recent years.

Net Income

The net income exhibits significant fluctuation over the analyzed periods. Starting at 540 million USD in May 2019, it increased sharply to 1286 million USD by May 2020. There was a substantial surge in May 2021, with net income reaching 5231 million USD. However, a decline followed in May 2022 to 3826 million USD, then a slight recovery appeared in the subsequent years, with figures rising to 3972 million USD in May 2023 and 4331 million USD by May 2024. Overall, the data shows a volatile but generally upward trend in profitability.

Total Assets

Total assets consistently increased over the time frame. Beginning at 54,403 million USD in May 2019, assets grew steadily each year, reaching 73,537 million USD in May 2020, 82,777 million USD in May 2021, and peaked at 87,143 million USD in May 2023. A slight decrease to 87,007 million USD was observed in May 2024, indicating relative stability but a minor pullback in asset accumulation.

Return on Assets (ROA)

The ROA percentage demonstrated an increasing trend, reflecting improved efficiency in utilizing assets to generate net income. ROA started at a low rate of 0.99% in May 2019, improved to 1.75% in May 2020, and then made a substantial jump to 6.32% in May 2021, correlating with the peak in net income. Subsequently, ROA decreased to 4.45% in May 2022 but showed moderate growth in the following years, reaching 4.56% in May 2023 and 4.98% in May 2024. This pattern indicates enhanced profitability relative to asset base after the peak year.