Analysis of Reportable Segments
FedEx Corp. operates in 2 segments: Federal Express and FedEx Freight.
Segment Profit Margin
FedEx Corp., profit margin by reportable segment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 6.49% | 6.45% | 5.53% | 7.02% | 8.27% | 5.17% |
| FedEx Freight | 16.75% | 19.31% | 19.20% | 17.45% | 12.83% | 8.17% |
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).
- Federal Express Profit Margin
- Over the six-year period, the profit margin exhibited notable fluctuations. Starting at 5.17% in 2020, it increased significantly to 8.27% in 2021, indicating improved profitability. However, it then declined to 7.02% in 2022 and further to 5.53% in 2023, showing a weakening of profit margins. This was followed by a moderate recovery to 6.45% in 2024, which remained relatively stable with a slight increase to 6.49% in 2025. Overall, the trend suggests volatility with an initial peak in 2021, a subsequent drop in the mid-period, and some stabilization towards the end.
- FedEx Freight Profit Margin
- The segment demonstrated a strong upward trajectory from 8.17% in 2020 to a peak of 19.31% in 2024. This represents a consistent and significant improvement in profitability over the first five years. However, in 2025, there was a notable decrease to 16.75%, indicating some contraction in profit margin after several years of growth. The trend highlights a period of expansion and enhanced efficiency or pricing power, followed by a modest decline at the end of the observed timeframe.
- Comparative Insights
- Comparing the two segments, FedEx Freight consistently maintained higher profit margins than Federal Express throughout the period, with a wider range and a more pronounced growth trend. Federal Express showed more volatility and less pronounced growth, while FedEx Freight’s margins suggest stronger operational performance or market positioning. The drop in FedEx Freight’s margin in 2025 merits further investigation to understand underlying causes. The overall data indicate that FedEx Freight has been a more robust contributor to profitability relative to Federal Express over these years.
Segment Profit Margin: Federal Express
FedEx Corp.; Federal Express; segment profit margin calculation
| 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 (loss) | 4,885) | 4,819) | 4,193) | 5,564) | 6,003) | 3,010) |
| Revenue | 75,304) | 74,663) | 75,884) | 79,299) | 72,606) | 58,268) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 6.49% | 6.45% | 5.53% | 7.02% | 8.27% | 5.17% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 4,885 ÷ 75,304 = 6.49%
The Federal Express segment exhibits several notable financial trends over the period observed, reflecting fluctuations in both revenue and profitability measures.
- Revenue
- Revenue increased significantly from US$58,268 million in May 2020 to a peak of US$79,299 million in May 2022. After reaching this peak, revenue declined moderately to US$75,884 million in May 2023 and showed small fluctuations thereafter, ending at US$75,304 million by May 2025. This suggests initial strong growth with some stabilization and slight contraction in the later years.
- Operating Income
- Operating income displayed a strong upward trend early in the period, nearly doubling from US$3,010 million in May 2020 to US$6,003 million in May 2021. However, operating income then decreased to US$5,564 million in May 2022 and experienced a more marked decline to US$4,193 million in May 2023. After this trough, operating income showed partial recovery, increasing modestly to US$4,885 million by May 2025. This pattern indicates significant volatility in operating profitability, with an initial surge followed by a period of decline and moderate rebound.
- Segment Profit Margin
- The segment profit margin reflects the ratio of operating income to revenue and highlights profitability efficiency. This margin rose from 5.17% in May 2020 to a high of 8.27% in May 2021, indicating improved operational efficiency or favorable cost management during this time. Afterwards, the margin declined steadily to 5.53% in May 2023 before recovering somewhat to around 6.49% in May 2025. The decline in margin following 2021 suggests increased costs or operational challenges impacting profitability, despite relatively stable revenue levels in the latter years.
In summary, the data reveals an overall growth in revenue up to a peak in 2022, followed by stabilization, contrasted with more fluctuating operating income and profit margins. After an initial phase of improvement in profitability, the segment faced pressure that reduced operating profits and margins, with only partial recovery by the end of the period. This indicates challenges in sustaining the initial operating gains despite maintaining relatively high revenue levels.
Segment Profit Margin: FedEx Freight
FedEx Corp.; FedEx Freight; segment profit margin calculation
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 1,489) | 1,821) | 1,936) | 1,663) | 1,005) | 580) |
| Revenue | 8,892) | 9,429) | 10,084) | 9,532) | 7,833) | 7,102) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 16.75% | 19.31% | 19.20% | 17.45% | 12.83% | 8.17% |
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,489 ÷ 8,892 = 16.75%
- Operating Income (Loss)
- Operating income exhibited a strong upward trajectory from 580 million USD in May 2020 to a peak of 1,936 million USD in May 2023. Following this peak, there was a decline, with operating income decreasing to 1,821 million USD in May 2024 and further to 1,489 million USD in May 2025.
- Revenue
- Revenue increased steadily from 7,102 million USD in May 2020 to a high of 10,084 million USD in May 2023. After this peak, revenue declined to 9,429 million USD in May 2024 and continued to decrease to 8,892 million USD by May 2025.
- Segment Profit Margin
- The segment profit margin showed consistent growth from 8.17% in May 2020 to a peak of 19.31% in May 2024. However, this upward trend reversed slightly in May 2025, with the margin decreasing to 16.75%.
- Summary of Trends
- Overall, the data indicates significant growth in both operating income and revenue from 2020 through 2023, coinciding with a marked improvement in segment profit margin. The period after 2023 shows a decline in both revenue and operating income, while the segment profit margin remains relatively high despite a moderate decrease in the latest year. This pattern suggests that while the segment achieved strong profitability growth initially, recent years have experienced some softening in financial performance, potentially reflecting market challenges or operational adjustments.
Segment Return on Assets (Segment ROA)
FedEx Corp., ROA by reportable segment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 6.59% | 6.58% | 4.93% | 6.28% | 7.14% | 4.11% |
| FedEx Freight | 11.54% | 15.68% | 18.59% | 18.68% | 13.63% | 9.01% |
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).
- Federal Express Segment ROA Trends
-
The Return on Assets (ROA) for the Federal Express segment exhibits variability over the period analyzed. Beginning at 4.11% in May 2020, there is a noticeable increase to 7.14% by May 2021, indicating an improvement in asset utilization efficiency. However, this peak is followed by a decline to 6.28% in May 2022 and a further drop to 4.93% in May 2023, suggesting some operational or market challenges during this interval.
Subsequently, ROA recovers to 6.58% in May 2024 and stabilizes slightly to 6.59% in May 2025. Overall, the Federal Express segment shows moderate fluctuations with a general positive trend from the starting point, despite a mid-period downturn.
- FedEx Freight Segment ROA Trends
-
The FedEx Freight segment demonstrates a strong upward trajectory in ROA initially, starting at 9.01% in May 2020 and rising substantially to a peak of 18.68% in May 2022. This upward trend indicates significant improvements in managing assets within this segment, possibly through operational enhancements or favorable market conditions.
Following the peak, the ROA slightly declines to 18.59% in May 2023, marking a stabilization phase near the peak performance. However, thereafter, a more pronounced decrease occurs, dropping to 15.68% in May 2024 and further down to 11.54% in May 2025. Despite the decline from its peak, the ROA remains well above the initial level observed in 2020, indicating that the segment maintains a relatively high efficiency in asset utilization compared to the beginning of the period.
- Comparative Insights Between Segments
-
Comparatively, the FedEx Freight segment consistently exhibits higher ROA percentages than the Federal Express segment across all evaluated years, suggesting a more efficient use of assets within Freight services. While the Federal Express segment shows slower growth and more modest fluctuations, the Freight segment experiences sharper increases and more significant declines, which may reflect differing market dynamics or strategic actions impacting asset returns.
The decline in FedEx Freight's ROA after 2022 warrants attention, as this reversal from prior growth highlights potential challenges that may affect future profitability or efficiency. In contrast, the Federal Express segment's more stable but lower ROA might reflect a mature or less volatile business environment.
Segment ROA: Federal Express
FedEx Corp.; Federal Express; segment ROA calculation
| 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 (loss) | 4,885) | 4,819) | 4,193) | 5,564) | 6,003) | 3,010) |
| Segment assets | 74,154) | 73,259) | 85,128) | 88,638) | 84,129) | 73,237) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 6.59% | 6.58% | 4.93% | 6.28% | 7.14% | 4.11% |
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
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 4,885 ÷ 74,154 = 6.59%
- Operating Income (Loss)
- The operating income demonstrated a strong upward trend from 2020 to 2021, more than doubling from 3,010 million USD to 6,003 million USD. However, in 2022, there was a decline to 5,564 million USD, followed by a more pronounced decrease in 2023 to 4,193 million USD. The period from 2023 to 2025 shows a gradual recovery, with operating income rising again to 4,819 million USD in 2024 and further to 4,885 million USD in 2025, though it does not reach the peak level observed in 2021.
- Segment Assets
- Segment assets increased significantly from 73,237 million USD in 2020 to a peak of 88,638 million USD in 2022. Subsequently, there was a decline to 85,128 million USD in 2023, followed by a more substantial drop to 73,259 million USD in 2024. In 2025, segment assets showed a slight increase, reaching 74,154 million USD. Overall, assets exhibited volatility with a notable peak in 2022 and a correction afterward.
- Segment Return on Assets (ROA)
- Segment ROA followed a similar pattern to operating income, rising from 4.11% in 2020 to 7.14% in 2021. It then decreased to 6.28% in 2022 and further down to 4.93% in 2023, reflecting the decline in operating income and fluctuations in asset levels. The ROA improved again in 2024 and 2025, reaching 6.58% and 6.59%, respectively, indicating enhanced efficiency in generating income from assets in the most recent periods.
- Overall Insights
- The segment experienced notable growth in profitability and efficient asset utilization in 2021. This was followed by a period of contraction in both operating income and ROA during 2022 and 2023, coinciding with a peak and subsequent reduction in segment assets. The recovery in both profitability and ROA in 2024 and 2025 suggests a stabilization and possible strategic adjustment leading to better asset efficiency. Despite these fluctuations, the ROA remains above 4%, indicating a generally positive return on assets over the analyzed period.
Segment ROA: FedEx Freight
FedEx Corp.; FedEx Freight; segment ROA calculation
| 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 (loss) | 1,489) | 1,821) | 1,936) | 1,663) | 1,005) | 580) |
| Segment assets | 12,899) | 11,615) | 10,416) | 8,904) | 7,371) | 6,434) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 11.54% | 15.68% | 18.59% | 18.68% | 13.63% | 9.01% |
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
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 1,489 ÷ 12,899 = 11.54%
The financial data for “FedEx Freight” indicates several notable trends over the six-year period from 2020 to 2025.
- Operating Income
- Operating income demonstrated a substantial upward trajectory from 580 million USD in 2020 to a peak of 1,936 million USD in 2023. However, this upward trend reversed in the subsequent years, declining to 1,821 million USD in 2024 and further to 1,489 million USD in 2025. Despite the decline in the latest years, operating income in 2025 remains significantly higher than the 2020 figure.
- Segment Assets
- Segment assets showed consistent growth throughout the entire period. Starting at 6,434 million USD in 2020, assets increased steadily each year, reaching 12,899 million USD by 2025. This continuous asset growth suggests ongoing investment and expansion within the segment.
- Segment Return on Assets (ROA)
- The segment’s ROA improved markedly from 9.01% in 2020 to a high of 18.68% in 2022. It remained relatively stable in 2023 at 18.59% but then experienced a decline over the last two years, dropping to 15.68% in 2024 and further to 11.54% in 2025. This pattern indicates that while asset utilization efficiency increased significantly in the earlier years, it has diminished more recently.
In summary, the segment has shown strong asset growth and improving profitability in the early part of the period. However, the most recent years reveal a decline in operating income and ROA, pointing to challenges in maintaining profitability levels despite the continued expansion of assets. This could suggest pressures on margins or increased costs that are not fully offset by revenue growth or asset productivity.
Segment Asset Turnover
FedEx Corp., asset turnover by reportable segment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 1.02 | 1.02 | 0.89 | 0.89 | 0.86 | 0.80 |
| FedEx Freight | 0.69 | 0.81 | 0.97 | 1.07 | 1.06 | 1.10 |
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).
- Federal Express Segment Asset Turnover
- The Federal Express segment demonstrates a generally positive trend in asset turnover over the six-year period. Beginning at 0.80 in May 2020, the ratio shows a steady increase through to May 2022, reaching 0.89, and maintaining this level into May 2023. A notable improvement occurs in the subsequent years, with the ratio advancing to 1.02 by May 2024 and sustaining this level through May 2025. This pattern indicates an enhancement in the efficiency with which the Federal Express segment utilizes its assets to generate revenue, reflecting an overall strengthening in operational performance.
- FedEx Freight Segment Asset Turnover
- The FedEx Freight segment displays a contrasting trend characterized by a gradual decline in asset turnover over the same timeframe. Starting from a relatively strong position at 1.10 in May 2020, the ratio declines incrementally to 1.06 in May 2021 and remains close to this level at 1.07 in May 2022. From May 2023 onward, the asset turnover ratio decreases more sharply, dropping to 0.97, then falling further to 0.81 in May 2024, and finally reaching 0.69 in May 2025. This downturn suggests reduced effectiveness in asset utilization for revenue generation within the FedEx Freight segment, possibly indicative of operational challenges or increased asset base not matched by proportional revenue growth.
- Comparative Insights
- Comparing the two segments reveals divergent trends in asset efficiency. While Federal Express is improving its turnover ratio, surpassing a value of 1.00 in the final years, FedEx Freight is experiencing a consistent decline. The Federal Express segment’s upward trajectory points to enhanced asset management or increased revenue productivity, whereas the downward trend in FedEx Freight may warrant further investigation into underlying causes, such as market conditions, operational inefficiencies, or capital investment strategies that have not yet translated into revenue gains.
Segment Asset Turnover: Federal Express
FedEx Corp.; Federal Express; segment asset turnover calculation
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 75,304) | 74,663) | 75,884) | 79,299) | 72,606) | 58,268) |
| Segment assets | 74,154) | 73,259) | 85,128) | 88,638) | 84,129) | 73,237) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.02 | 1.02 | 0.89 | 0.89 | 0.86 | 0.80 |
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
Segment asset turnover = Revenue ÷ Segment assets
= 75,304 ÷ 74,154 = 1.02
- Revenue Trends
- The revenue demonstrated an overall upward trend from the year ending May 31, 2020, through May 31, 2022, increasing from 58,268 million USD to 79,299 million USD. However, following 2022, revenue declined to 75,884 million USD in 2023 and further slightly decreased to 74,663 million USD in 2024 before experiencing a marginal increase to 75,304 million USD in 2025. This indicates a peak in revenue in 2022, followed by a period of moderate contraction and stabilization.
- Segment Assets Trends
- Segment assets exhibited a generally increasing pattern from 73,237 million USD in 2020 to a peak of 88,638 million USD in 2022. After this peak, assets decreased notably to 85,128 million USD in 2023 and then more sharply to 73,259 million USD in 2024, before a slight recovery to 74,154 million USD in 2025. This movement aligns broadly with the revenue's pattern and suggests possible asset reallocation or divestment after 2022.
- Segment Asset Turnover
- The asset turnover ratio, reflecting efficiency in using assets to generate revenue, showed steady improvement over the observed period. Starting at 0.8 in 2020, the ratio increased incrementally to 0.89 by 2022 and maintained this level through 2023. Notably, in 2024 and 2025, the ratio rose significantly to 1.02, indicating enhanced operational efficiency despite the decline in segment assets and relatively flat revenue. This suggests improved management of assets or increased output from the existing asset base in the more recent years.
- Summary
- The data reveals that the segment experienced growth in both revenue and assets up to 2022, followed by a period of decline and stabilization. Despite the reduction in segment assets post-2022, the improved asset turnover ratio suggests that the segment managed to maintain or slightly increase revenue generation efficiency. This may imply strategic adjustments or improved operational practices leading to better utilization of resources in recent years.
Segment Asset Turnover: FedEx Freight
FedEx Corp.; FedEx Freight; segment asset turnover calculation
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 8,892) | 9,429) | 10,084) | 9,532) | 7,833) | 7,102) |
| Segment assets | 12,899) | 11,615) | 10,416) | 8,904) | 7,371) | 6,434) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.69 | 0.81 | 0.97 | 1.07 | 1.06 | 1.10 |
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
Segment asset turnover = Revenue ÷ Segment assets
= 8,892 ÷ 12,899 = 0.69
The financial data for the FedEx Freight segment exhibit several notable trends over the fiscal years ending from 2020 to 2025. Revenue figures initially demonstrate a consistent upward trajectory, increasing from 7,102 million US dollars in 2020 to peak at 10,084 million US dollars in 2023. However, subsequent years show a decline in revenue, dropping to 9,429 million in 2024 and further to 8,892 million in 2025, reflecting a contraction after a period of growth.
Segment assets show a persistent growth pattern throughout the entire period. The assets increased steadily from 6,434 million US dollars in 2020 to 12,899 million US dollars by 2025. This nearly doubling of assets suggests ongoing investment or accumulation of resources within the segment.
Analyzing segment asset turnover, which measures the efficiency of asset use to generate revenue, reveals a declining trend. The ratio decreased from 1.1 in 2020 to 0.69 in 2025. This decline indicates that despite the increase in total assets, the segment is generating less revenue per dollar of assets over time. The drop in asset turnover is particularly pronounced after 2022, coinciding with the declining revenue trend and accelerating asset growth, which suggests a reduction in operational efficiency or asset utilization in recent years.
- Revenue
- Increasing trend from 2020 through 2023, followed by a decline in 2024 and 2025.
- Segment Assets
- Continuous growth across all years, almost doubling from 2020 to 2025.
- Segment Asset Turnover
- Steady decrease indicating declining efficiency in asset utilization from 2020 to 2025.
Overall, the data suggest that while FedEx Freight has expanded its asset base significantly, this has not translated into proportional revenue growth in the most recent years. The decreasing asset turnover ratio points to potential challenges in effectively leveraging these assets to sustain revenue growth.
Segment Capital Expenditures to Depreciation
FedEx Corp., capital expenditures to depreciation by reportable segment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 0.94 | 1.22 | 1.50 | 1.84 | 1.68 | 1.67 |
| FedEx Freight | 1.05 | 1.14 | 1.44 | 0.79 | 0.77 | 1.41 |
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).
- Federal Express Capital Expenditures to Depreciation Ratio
- The ratio began at 1.67 in 2020 and remained nearly stable in 2021 at 1.68, indicating consistent capital investment relative to depreciation. It then increased to 1.84 in 2022, suggesting a period of higher capital expenditures or lower depreciation expense. From 2023 onward, the ratio declined steadily, falling to 1.5 in 2023, 1.22 in 2024, and further to 0.94 in 2025. This downward trend implies a relative reduction in capital expenditures compared to depreciation or an increase in depreciation expenses, potentially signaling a shifting investment strategy or asset base aging.
- FedEx Freight Capital Expenditures to Depreciation Ratio
- The ratio started at 1.41 in 2020 but then experienced a significant decline to 0.77 in 2021, followed by a slight increase to 0.79 in 2022. This suggests a reduction in capital spending relative to depreciation during this period. In 2023, the ratio increased more substantially to 1.44, indicating a renewed emphasis on capital investment or a decrease in depreciation expense. Subsequent years show a moderate downward trend: 1.14 in 2024 and 1.05 in 2025, which may reflect a normalization of capital expenditures or adjustments in asset depreciation policies.
- Overall Insights
- Both segments show dynamic movements in their capital expenditure to depreciation ratios over the six-year period. Federal Express demonstrated a rise followed by a consistent decline, potentially highlighting a phase of expansion followed by consolidation or reduced reinvestment. FedEx Freight showed an initial drop, recovery, and then stabilization at slightly above or near parity with depreciation. These patterns may reflect differing capital investment strategies or asset lifecycle stages within the segments, possibly driven by operational needs or market conditions.
Segment Capital Expenditures to Depreciation: Federal Express
FedEx Corp.; Federal Express; segment capital expenditures to depreciation calculation
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 3,505) | 4,591) | 5,480) | 6,341) | 5,461) | 5,170) |
| Depreciation and amortization | 3,722) | 3,754) | 3,655) | 3,439) | 3,251) | 3,096) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.94 | 1.22 | 1.50 | 1.84 | 1.68 | 1.67 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 3,505 ÷ 3,722 = 0.94
An analysis of the Federal Express reportable segment data reveals several notable trends over the presented periods.
- Capital Expenditures
- Capital expenditures demonstrate a fluctuating trend, initially increasing from 5,170 million US dollars in 2020 to a peak of 6,341 million US dollars in 2022. Following this peak, capital expenditures decrease considerably, falling to 3,505 million US dollars by 2025. This indicates a reduction in investment in assets or infrastructure in recent periods.
- Depreciation and Amortization
- Depreciation and amortization show a consistent upward trend from 3,096 million US dollars in 2020 to 3,722 million US dollars in 2025, reflecting increasing allocation of expense related to capital assets. The gradual increase implies a growing asset base or a change in asset valuation over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation starts at 1.67 in 2020 and rises slightly to a peak of 1.84 in 2022, suggesting capital investments exceeded asset depreciation notably during this period. However, from 2023 onwards, this ratio declines sharply, reaching 0.94 in 2025, indicating that capital expenditures fell below the level of depreciation and amortization expenses. This shift may signal a slowdown in asset acquisitions or replacements compared to prior years.
In summary, while capital expenditures peaked in 2022, they have decreased substantially since then, falling below depreciation and amortization levels by 2025. Conversely, depreciation and amortization steadily increased, reflecting an accumulation of asset-related expenses. The decline in the ratio of capital expenditures to depreciation suggests a potential moderation in asset investment relative to asset consumption in recent years.
Segment Capital Expenditures to Depreciation: FedEx Freight
FedEx Corp.; FedEx Freight; segment capital expenditures to depreciation calculation
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 437) | 461) | 557) | 319) | 320) | 539) |
| Depreciation and amortization | 416) | 404) | 387) | 406) | 417) | 381) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.05 | 1.14 | 1.44 | 0.79 | 0.77 | 1.41 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 437 ÷ 416 = 1.05
- Capital Expenditures
- Capital expenditures experienced a decline from US$539 million in May 31, 2020, to US$320 million in May 31, 2021, remaining relatively stable at US$319 million in May 31, 2022. Thereafter, a notable increase occurred reaching US$557 million in May 31, 2023, followed by a decrease to US$461 million in May 31, 2024, and a further decline to US$437 million in May 31, 2025.
- Depreciation and Amortization
- Depreciation and amortization values increased steadily from US$381 million in May 31, 2020, to a peak of US$417 million in May 31, 2021. Subsequently, the figures showed a minor decrease to US$406 million in May 31, 2022 and US$387 million in May 31, 2023, before rising again to US$404 million in May 31, 2024 and US$416 million in May 31, 2025.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation began at a high of 1.41 in May 31, 2020, dropped significantly to 0.77 in May 31, 2021, and slightly increased to 0.79 in May 31, 2022. It then surged to 1.44 in May 31, 2023, indicating a substantial increase in capital expenditure relative to depreciation. Following this peak, the ratio decreased to 1.14 in May 31, 2024 and further declined to 1.05 in May 31, 2025, suggesting a moderation in capital expenditure levels compared to depreciation.
Revenue
FedEx Corp., revenue by reportable segment
US$ in millions
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 75,304) | 74,663) | 75,884) | 79,299) | 72,606) | 58,268) |
| FedEx Freight | 8,892) | 9,429) | 10,084) | 9,532) | 7,833) | 7,102) |
| Corporate, other and eliminations | 3,730) | 3,601) | 4,187) | 4,681) | 3,520) | 3,847) |
| Consolidated total | 87,926) | 87,693) | 90,155) | 93,512) | 83,959) | 69,217) |
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).
The revenue data exhibits varying trends across the different reportable segments over the six-year period.
- Federal Express Segment
- The Federal Express segment shows an overall upward trend from 2020 to 2025, starting at 58,268 million USD in 2020 and rising to 75,304 million USD in 2025. Revenue increased substantially from 2020 to 2022, peaking at 79,299 million USD, followed by a slight decline in 2023 and 2024 before stabilizing in 2025.
- FedEx Freight Segment
- FedEx Freight demonstrates steady growth from 7,102 million USD in 2020 to a peak of 10,084 million USD in 2023. After this peak, the segment experienced a decline in revenue, falling to 8,892 million USD in 2025, which is still above the initial 2020 level but indicates a reversal of the earlier growth trend in the final two years.
- Corporate, Other, and Eliminations
- This segment displays fluctuating revenues without a clear trend. Beginning at 3,847 million USD in 2020, it decreased slightly in 2021, then increased notably in 2022 before declining again in subsequent years. The values range between approximately 3,500 million USD and 4,600 million USD, evidencing volatility but remaining a relatively small portion of total revenues.
- Consolidated Total
- The consolidated total revenue follows a pattern reflecting the segmented data trends: a significant increase from 69,217 million USD in 2020 to 93,512 million USD in 2022, followed by a gradual decline over the next two years, ending at 87,926 million USD in 2025. This indicates overall growth with some recent deceleration or correction.
In summary, strong growth is seen in the first half of the period, particularly up to 2022, led by both Federal Express and FedEx Freight segments. The subsequent years reveal a stabilization or slight decline in revenue, especially in the FedEx Freight segment, suggesting potential market saturation, competitive pressures, or other operational challenges. The corporate and other segment remains relatively stable with minor fluctuations, indicating consistent but limited impact on consolidated revenues.
Depreciation and amortization
FedEx Corp., depreciation and amortization by reportable segment
US$ in millions
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 3,722) | 3,754) | 3,655) | 3,439) | 3,251) | 3,096) |
| FedEx Freight | 416) | 404) | 387) | 406) | 417) | 381) |
| Corporate, other and eliminations | 126) | 129) | 134) | 125) | 125) | 138) |
| Consolidated total | 4,264) | 4,287) | 4,176) | 3,970) | 3,793) | 3,615) |
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).
- Overall Depreciation and Amortization Trend
- The total depreciation and amortization expenses show a steady upward trend from May 31, 2020, to May 31, 2024, increasing from $3,615 million to $4,287 million. However, there is a slight decrease in the forecast for May 31, 2025, bringing the amount down to $4,264 million. This indicates a general increase in asset usage or acquisition over the years, with a minor expected reduction in the most recent period.
- Federal Express Segment
- This segment consistently represents the largest portion of depreciation and amortization expenses. It grows from $3,096 million in 2020 to a peak of $3,754 million in 2024 before experiencing a small decline to $3,722 million in 2025. The trend suggests ongoing capital investment and asset utilization, with a slight slowdown or adjustment forecasted towards the final year.
- FedEx Freight Segment
- The FedEx Freight segment shows comparatively smaller, more fluctuating values. Starting at $381 million in 2020, expenses increased to $417 million in 2021, then decreased slightly in 2022 and 2023 to $406 million and $387 million, respectively. There is a modest recovery forecasted in 2024 and 2025, rising back to $404 million and $416 million. These fluctuations may reflect variable capital expenditures or changes in asset usage specific to freight operations.
- Corporate, Other and Eliminations Segment
- This category remains relatively stable over the years, with minor fluctuations. The expenses decrease from $138 million in 2020 to $125 million in 2021 and 2022, then increase slightly to $134 million in 2023 before settling around $126-$129 million in 2024 and 2025. The stability suggests limited changes in corporate-level asset depreciation or amortization.
- Segment Contributions and Insights
- Federal Express consistently dominates the total depreciation and amortization, accounting for approximately 87-88% of the consolidated total throughout the observed periods. FedEx Freight and Corporate, other and eliminations combined contribute the remaining 12-13%. The trends indicate that the primary capital investment and asset utilization focus remain within the Federal Express segment, with FedEx Freight showing moderate volatility and corporate-related expenses remaining steady.
Operating income (loss)
FedEx Corp., operating income (loss) by reportable segment
US$ in millions
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 4,885) | 4,819) | 4,193) | 5,564) | 6,003) | 3,010) |
| FedEx Freight | 1,489) | 1,821) | 1,936) | 1,663) | 1,005) | 580) |
| Corporate, other and eliminations | (1,157) | (1,081) | (1,217) | (982) | (1,151) | (1,173) |
| Consolidated total | 5,217) | 5,559) | 4,912) | 6,245) | 5,857) | 2,417) |
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).
- Federal Express Segment Operating Income
- The Federal Express segment shows a significant increase from 3010 million USD in 2020 to a peak of 6003 million USD in 2021. This is followed by a decline to 5564 million USD in 2022 and a further decrease to 4193 million USD in 2023. The segment experiences a slight recovery from 2023 onwards, reaching 4819 million USD in 2024 and 4885 million USD in 2025, although the values remain below the 2021 peak.
- FedEx Freight Segment Operating Income
- The FedEx Freight segment demonstrates a steady upward trend from 580 million USD in 2020 to a high of 1936 million USD in 2023. However, after 2023, the operating income shows a decline, falling to 1821 million USD in 2024 and further decreasing to 1489 million USD in 2025.
- Corporate, Other and Eliminations
- This category consistently records negative operating income across all periods, indicating ongoing expenses or losses attributed to corporate and other activities. The values fluctuate within a narrow range, starting at -1173 million USD in 2020, improving slightly to -982 million USD in 2022, then worsening again to -1217 million USD in 2023, and ending near the earlier levels with -1157 million USD in 2025.
- Consolidated Total Operating Income
- The consolidated total follows a pattern influenced by the aforementioned segments. There is a marked increase from 2417 million USD in 2020 to 5857 million USD in 2021 and a further rise to 6245 million USD in 2022. Subsequently, total operating income declines to 4912 million USD in 2023, followed by a recovery to 5559 million USD in 2024, and a slight decrease to 5217 million USD in 2025. Overall, the consolidated operating income exhibits volatility with notable peaks in 2021 and 2022 followed by a partial but uneven recovery.
- Summary of Trends
- Both primary operating segments show growth up to the early 2020s; Federal Express peaks earlier (2021), while FedEx Freight continues to rise through 2023. Post-peak periods for both segments reveal contractions in operating income. The persistent negative contribution from corporate and eliminations slightly worsens in certain years, which may impact overall profitability. The consolidated totals reflect these combined trends, with strong growth up to 2022, a downturn in 2023, and some recovery attempts in subsequent years, yet not returning to peak levels within the given timeframe.
Segment assets
FedEx Corp., segment assets by reportable segment
US$ in millions
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 74,154) | 73,259) | 85,128) | 88,638) | 84,129) | 73,237) |
| FedEx Freight | 12,899) | 11,615) | 10,416) | 8,904) | 7,371) | 6,434) |
| Corporate, other and eliminations | 574) | 2,133) | (8,401) | (11,548) | (8,723) | (6,134) |
| Consolidated total | 87,627) | 87,007) | 87,143) | 85,994) | 82,777) | 73,537) |
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).
- Federal Express Segment Assets
- The segment assets showed an overall upward trend from May 31, 2020, to May 31, 2022, increasing from approximately 73,237 million USD to 88,638 million USD. However, there was a decline in the subsequent years, falling to about 73,259 million USD by May 31, 2024, before a slight recovery to 74,154 million USD in May 31, 2025.
- FedEx Freight Segment Assets
- This segment demonstrated consistent growth throughout the entire period. Starting at 6,434 million USD in 2020, assets increased each year, reaching 12,899 million USD by May 31, 2025. The growth rate appeared steady and substantial, reflecting a continuous expansion in this segment.
- Corporate, Other, and Eliminations
- This category exhibited a negative position in segment assets for most years until a marked shift occurred starting in May 31, 2024, where the values turned positive and significantly increased in 2025. Initially, the values dropped deeper into the negative from -6,134 million USD in 2020 to -11,548 million USD in 2022, followed by a reduction in negative value to -8,401 million USD in 2023. The positive turnaround to 2,133 million USD in 2024 and 574 million USD in 2025 indicates a notable reclassification or operational change affecting this segment.
- Consolidated Total Assets
- The consolidated total assets displayed a generally stable pattern with slight fluctuations. Beginning at 73,537 million USD in 2020, the total assets peaked at 87,143 million USD in 2023 before experiencing a minor decline in 2024 to 87,007 million USD, and a marginal increase to 87,627 million USD in 2025. The relative stability indicates that despite fluctuations in individual segments, the overall asset base remained robust during the period.
- Summary
- The data reveal growth in FedEx Freight assets and an initial rise followed by decline in Federal Express assets. The Corporate, other and eliminations segment transitioned from negative to positive values in the last two years, suggesting significant changes in internal accounting or asset allocation. Overall, the consolidated assets maintained a steady level with moderate growth by the end of the period, reflecting stability in the company’s total asset base despite segment-specific variations.
Capital expenditures
FedEx Corp., capital expenditures by reportable segment
US$ in millions
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|---|
| Federal Express | 3,505) | 4,591) | 5,480) | 6,341) | 5,461) | 5,170) |
| FedEx Freight | 437) | 461) | 557) | 319) | 320) | 539) |
| Corporate, other and eliminations | 113) | 124) | 137) | 103) | 103) | 159) |
| Consolidated total | 4,055) | 5,176) | 6,174) | 6,763) | 5,884) | 5,868) |
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).
The capital expenditures data across the annual periods reveal notable fluctuations and distinct trends within each segment.
- Federal Express
- This segment exhibits a general downward trend in capital expenditures over the observed periods. Initial expenditures increased from 5,170 million USD in 2020 to a peak of 6,341 million USD in 2022. However, from 2023 onwards, spending consistently declined, reaching 3,505 million USD by 2025, which represents a significant reduction of approximately 45% from the peak.
- FedEx Freight
- Capital expenditures in this segment show variability without a clear upward or downward trend. After a decline from 539 million USD in 2020 to 320 million USD in 2021, the expenditures remained stable around 319 million USD in 2022. A rebound occurred in 2023, with spending increasing to 557 million USD. In the subsequent years, expenditures decreased again but remained relatively stable at approximately 437 million USD by 2025, still below the 2020 peak.
- Corporate, other and eliminations
- This category shows a generally low and fluctuating level of capital expenditures, with amounts ranging from 103 million USD to 159 million USD across the periods. No consistent upward or downward trend is evident, and the spending remains a small proportion of total expenditures throughout.
- Consolidated total
- The total capital expenditures mirror the trends observed in the Federal Express segment due to its dominance in scale. After increasing from 5,868 million USD in 2020 to 6,763 million USD in 2022, the total expenditures decreased in the following years to 4,055 million USD by 2025. This reflects an overall contraction in capital spending across the company, driven mainly by the Federal Express segment's reductions.
In summary, the data show that capital investment peaked around 2022 for most segments before entering a period of decline, particularly pronounced in the Federal Express segment. FedEx Freight displayed more variable spending, with some recovery after a dip but not a return to initial levels. Corporate-related expenditures remained relatively minor and stable. The overall pattern suggests a strategic scaling back of capital expenditures following 2022.