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: 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), 10-K (reporting date: 2020-05-31).
- Operating Profit Margin
- The operating profit margin exhibited an overall increasing trend from 3.49% in 2020 to a peak of 6.98% in 2021, indicating an improvement in operational efficiency during that period. However, it slightly declined to 6.68% in 2022 and further decreased to 5.45% in 2023. Subsequently, it rebounded to 6.34% in 2024 before slightly dropping again to 5.93% in 2025. This suggests some volatility in operational profitability over the years, with no clear sustained growth beyond the 2021 peak.
- Net Profit Margin
- Net profit margin showed a notable increase from 1.86% in 2020 to 6.23% in 2021, reflecting significant improvement in overall profitability. It then decreased to 4.09% in 2022, followed by a modest upward trend through 2023 and 2024, reaching 4.94%. In 2025, it declined slightly to 4.65%. The margin remained relatively stable after 2021 but did not return to its peak, indicating some challenges in maintaining high net profitability levels post-2021.
- Return on Equity (ROE)
- Return on equity sharply increased from 7.03% in 2020 to a high of 21.64% in 2021, signaling strong returns generated for shareholders during this period. This was followed by a decline to 15.34% in 2022 and a stable range between approximately 14.58% and 15.7% from 2023 to 2025. While the ROE remained elevated compared to 2020, the decline from the 2021 peak indicates a normalization of returns after a period of exceptional performance.
- Return on Assets (ROA)
- The return on assets followed a pattern similar to other profitability metrics, rising sharply from 1.75% in 2020 to 6.32% in 2021, which highlights improved efficiency in asset utilization. Thereafter, ROA decreased to 4.45% in 2022 and stabilized somewhat between 4.56% and 4.98% from 2023 to 2024, before a slight drop to 4.67% in 2025. Overall, the metric suggests that while asset efficiency improved substantially in 2021, it experienced a moderate reduction and stabilization in subsequent years.
- Summary of Trends
- All profitability-related ratios peaked markedly in 2021, indicating an exceptional year in terms of profitability and efficiency. Following 2021, the figures generally declined but remained above the 2020 levels, reflecting some retention of the improved performance despite decreases. The fluctuations across all metrics suggest that the company faced varying operating conditions post-2021, which impacted profitability and returns but did not fully revert to the pre-2021 levels. Overall, the data depicts a scenario of improved performance reaching a high point in 2021, followed by moderate correction and stabilization in the subsequent years.
Return on Sales
Return on Investment
Operating Profit Margin
FedEx Corp., operating profit margin calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 5,217) | 5,559) | 4,912) | 6,245) | 5,857) | 2,417) | |
| Revenue | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | 69,217) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 5.93% | 6.34% | 5.45% | 6.68% | 6.98% | 3.49% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Uber Technologies Inc. | — | 6.36% | 2.98% | -5.75% | -21.97% | -43.66% | |
| Union Pacific Corp. | — | 40.05% | 37.65% | 39.87% | 42.83% | 40.11% | |
| United Airlines Holdings Inc. | — | 8.93% | 7.84% | 5.20% | -4.15% | -41.41% | |
| United Parcel Service Inc. | — | 9.30% | 10.05% | 13.05% | 13.17% | 9.08% | |
| Operating Profit Margin, Sector | |||||||
| Transportation | — | 10.40% | 9.61% | 10.07% | 9.44% | 3.36% | |
| Operating Profit Margin, Industry | |||||||
| Industrials | — | 9.94% | 9.90% | 9.06% | 9.24% | 3.13% | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 5,217 ÷ 87,926 = 5.93%
2 Click competitor name to see calculations.
- Revenue Trend
- Revenue exhibited a consistent upward trajectory from 2020 through 2022, increasing from 69,217 million USD to 93,512 million USD. However, a decline occurred in 2023 to 90,155 million USD, followed by a further decrease in 2024 to 87,693 million USD. In 2025, revenue stabilized somewhat, showing a slight increase to 87,926 million USD.
- Operating Income Trend
- Operating income rose significantly from 2,417 million USD in 2020 to a peak of 6,245 million USD in 2022. Subsequent years showed a decline, with operating income dropping to 4,912 million USD in 2023, a rebound to 5,559 million USD in 2024, and a decrease again to 5,217 million USD in 2025. Overall, operating income followed a pattern of growth until 2022, then fluctuated in the following years.
- Operating Profit Margin Analysis
- The operating profit margin more than doubled from 3.49% in 2020 to 6.98% in 2021, remaining relatively stable at 6.68% in 2022. A decline followed, with the margin falling to 5.45% in 2023. It increased again to 6.34% in 2024, then dropped slightly to 5.93% in 2025. This pattern indicates variability in profitability efficiency despite fluctuations in revenue and operating income.
- Overall Insights
- The data indicates initial strong growth in both revenue and operating income through 2022, accompanied by peak operating margins. Post-2022, revenue decreased and operating income showed volatility, which suggests challenges in maintaining earlier growth momentum. Profit margins also displayed variability, potentially reflecting cost pressures or operational inefficiencies. The stabilization of revenue in the most recent period alongside fluctuating profitability metrics points to an uncertain operating environment requiring continued management attention.
Net Profit Margin
FedEx Corp., net profit margin calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | 1,286) | |
| Revenue | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | 69,217) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 4.65% | 4.94% | 4.41% | 4.09% | 6.23% | 1.86% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Uber Technologies Inc. | — | 22.41% | 5.06% | -28.68% | -2.84% | -60.76% | |
| Union Pacific Corp. | — | 27.82% | 26.45% | 28.13% | 29.92% | 27.38% | |
| United Airlines Holdings Inc. | — | 5.52% | 4.87% | 1.64% | -7.97% | -46.04% | |
| United Parcel Service Inc. | — | 6.35% | 7.37% | 11.51% | 13.25% | 1.59% | |
| Net Profit Margin, Sector | |||||||
| Transportation | — | 9.82% | 7.28% | 4.73% | 9.05% | -2.93% | |
| Net Profit Margin, Industry | |||||||
| Industrials | — | 8.06% | 8.32% | 5.04% | 5.85% | 0.09% | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,092 ÷ 87,926 = 4.65%
2 Click competitor name to see calculations.
The financial data reveals several important trends over the period from May 31, 2020, to May 31, 2025.
- Net Income
- Net income showed a significant increase from 1,286 million US dollars in 2020 to a peak of 5,231 million US dollars in 2021. Following this peak, net income experienced a decline, reaching 3,826 million in 2022, then showed modest recovery and fluctuations around the levels of approximately 4,000 to 4,300 million between 2023 and 2025.
- Revenue
- Revenue increased substantially from 69,217 million US dollars in 2020 to a high of 93,512 million in 2022. After this peak, revenue declined to 90,155 million in 2023 and continued to decrease slightly to 87,693 million in 2024, before stabilizing near 87,926 million in 2025. This indicates a growth trend up to 2022, followed by a moderate contraction and stabilization.
- Net Profit Margin
- The net profit margin rose sharply from 1.86% in 2020 to 6.23% in 2021, reflecting improved profitability. After 2021, the margin decreased to 4.09% in 2022, then gradually improved to 4.94% in 2024 before dipping slightly to 4.65% in 2025. Despite fluctuations, the margin remained notably higher than the 2020 figure, suggesting enhanced efficiency or pricing power compared to the initial period.
Overall, the data highlights a period of robust growth and profitability improvement peaking in 2021, followed by a phase of contraction and relative stabilization. Revenue growth and net income changes indicate sensitivity to market or operational shifts post-2021, while profitability margins suggest an improved but variable efficiency in converting revenue to profit.
Return on Equity (ROE)
FedEx Corp., ROE calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | 1,286) | |
| Common stockholders’ investment | 28,074) | 27,582) | 26,088) | 24,939) | 24,168) | 18,295) | |
| Profitability Ratio | |||||||
| ROE1 | 14.58% | 15.70% | 15.23% | 15.34% | 21.64% | 7.03% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Uber Technologies Inc. | — | 45.72% | 16.77% | -124.54% | -3.43% | -55.18% | |
| Union Pacific Corp. | — | 39.95% | 43.14% | 57.54% | 46.06% | 31.54% | |
| United Airlines Holdings Inc. | — | 24.84% | 28.08% | 10.69% | -39.05% | -118.61% | |
| United Parcel Service Inc. | — | 34.59% | 38.76% | 58.36% | 90.44% | 204.41% | |
| ROE, Sector | |||||||
| Transportation | — | 31.30% | 27.38% | 19.64% | 30.78% | -10.82% | |
| ROE, Industry | |||||||
| Industrials | — | 23.51% | 27.70% | 15.38% | 15.38% | 0.24% | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 4,092 ÷ 28,074 = 14.58%
2 Click competitor name to see calculations.
- Net Income
- The net income exhibits significant variability over the analyzed periods. It started at 1,286 million USD in May 2020, followed by a notable surge to 5,231 million USD in May 2021. Subsequently, there was a decline to 3,826 million USD in May 2022, with a slight recovery in May 2023 reaching 3,972 million USD. The upward trend continued through May 2024 to 4,331 million USD but decreased to 4,092 million USD by May 2025. This pattern suggests considerable fluctuations in profitability, with an exceptional peak in 2021 that was not sustained in the following years.
- Common Stockholders’ Investment
- Common stockholders’ investment demonstrates a steady and consistent increase throughout the period. It rose from 18,295 million USD in May 2020 to 28,074 million USD by May 2025. This growth represents a cumulative increase of approximately 53% over six years, indicating continued reinvestment or capital inflows supporting the firm's equity base.
- Return on Equity (ROE)
- ROE shows an overall strong performance with some volatility. It started at 7.03% in May 2020, more than tripled to 21.64% in May 2021, then declined to 15.34% in May 2022. The ratio remained relatively stable from May 2022 through May 2025, fluctuating modestly between 14.58% and 15.7%. This trajectory points to an improved ability to generate profits from shareholders’ equity after 2020, though it has stabilized at a lower but sustainable level following the peak in 2021.
- Summary
- The financial data reflect a period characterized by a volatile but generally positive profitability trend, alongside consistent growth in equity investment. The pronounced spike in net income and ROE in 2021 suggests an anomalous year of exceptional earnings performance, followed by normalization. Continuous growth in common stockholders’ investment implies ongoing capital support. Overall, the company maintains a solid return on equity above 14% in recent years, indicating efficient use of equity capital despite fluctuations in net income.
Return on Assets (ROA)
FedEx Corp., ROA calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 4,092) | 4,331) | 3,972) | 3,826) | 5,231) | 1,286) | |
| Total assets | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | 73,537) | |
| Profitability Ratio | |||||||
| ROA1 | 4.67% | 4.98% | 4.56% | 4.45% | 6.32% | 1.75% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Uber Technologies Inc. | — | 19.23% | 4.88% | -28.47% | -1.28% | -20.35% | |
| Union Pacific Corp. | — | 9.96% | 9.50% | 10.69% | 10.27% | 8.57% | |
| United Airlines Holdings Inc. | — | 4.25% | 3.68% | 1.09% | -2.88% | -11.87% | |
| United Parcel Service Inc. | — | 8.25% | 9.47% | 16.24% | 18.57% | 2.15% | |
| ROA, Sector | |||||||
| Transportation | — | 8.53% | 6.44% | 4.34% | 6.88% | -2.01% | |
| ROA, Industry | |||||||
| Industrials | — | 5.24% | 5.61% | 3.31% | 3.40% | 0.04% | |
Based on: 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), 10-K (reporting date: 2020-05-31).
1 2025 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,092 ÷ 87,627 = 4.67%
2 Click competitor name to see calculations.
- Net Income Trends
- Net income exhibited a significant increase from 2020 to 2021, rising from 1,286 million US dollars to 5,231 million US dollars. Following this peak, net income declined to 3,826 million in 2022 but subsequently showed moderate growth in 2023 and 2024, reaching 4,331 million US dollars. However, a slight decrease is observed in 2025, with net income falling to 4,092 million US dollars. Overall, the figures indicate a notable volatility with a sharp increase followed by fluctuations around the 4,000 million mark in the later years.
- Total Assets Development
- Total assets steadily increased over the six-year period, growing from 73,537 million US dollars in 2020 to 87,627 million US dollars in 2025. Growth was consistent but modest after the initial jump from 73,537 to 82,777 million between 2020 and 2021. The asset base remained relatively stable between 2023 and 2025, hovering around 87,000 million US dollars.
- Return on Assets (ROA) Analysis
- Return on Assets followed a trend similar to net income, beginning at a low of 1.75% in 2020 and peaking at 6.32% in 2021. This peak was followed by a decline to 4.45% in 2022 and a slight recovery to 4.98% in 2024. In 2025, ROA decreased slightly again to 4.67%. The pattern suggests an improvement in asset utilization efficiency initially, with subsequent stability around the mid-4% range in the later periods.
- Overall Insights
- The company experienced a notable surge in profitability and efficiency on its assets in 2021, which was not maintained in the following years but stabilized commendably thereafter. The steady growth in total assets indicates ongoing investment or expansion, while the ROA suggests that the firm has been able to manage its assets productively despite fluctuations in net income.