Analysis of Reportable Segments
FedEx Corp. operates in 4 segments: FedEx Express; FedEx Ground; FedEx Freight; and FedEx Services.
Segment Profit Margin
FedEx Corp., profit margin by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 1.90% | 2.49% | 6.38% | 6.68% | 2.80% | 5.69% |
| FedEx Ground | 11.82% | 9.37% | 7.95% | 10.47% | 8.86% | 12.86% |
| FedEx Freight | 19.97% | 19.99% | 17.45% | 12.83% | 8.17% | 8.11% |
| FedEx Services | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Based on: 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), 10-K (reporting date: 2019-05-31).
- FedEx Express Profit Margin Trends
- The profit margin for FedEx Express demonstrated notable fluctuations over the six-year period. Starting at 5.69% in 2019, there was a sharp decline to 2.8% in 2020, indicating potential operational or market challenges during that year. A significant recovery occurred in 2021 and 2022, with margins increasing to 6.68% and 6.38%, respectively. However, a downward trend reemerged in the subsequent years, with margins falling to 2.49% in 2023 and further declining to 1.9% in 2024. Overall, the segment shows volatility, with a peak around 2021 followed by a decline.
- FedEx Ground Profit Margin Trends
- The FedEx Ground segment exhibited a generally positive trajectory in profit margins, despite some oscillations. The margin decreased from a strong 12.86% in 2019 to 8.86% in 2020, suggesting some difficulties in that year. Subsequently, margins improved moderately to 10.47% in 2021 but then declined again to 7.95% in 2022. From 2022 onward, a recovery trend is evident, with profit margins rising to 9.37% in 2023 and reaching a robust 11.82% in 2024. This pattern reflects resilience and an overall strengthening of profitability in recent years.
- FedEx Freight Profit Margin Trends
- The FedEx Freight segment showed consistent and substantial growth in profit margins throughout the analyzed period. Starting at 8.11% in 2019 and maintaining a steady level of 8.17% in 2020, the margin surged significantly in subsequent years: 12.83% in 2021, 17.45% in 2022, and peaking near 20% in both 2023 and 2024. This upward trend highlights marked improvements in segment performance and operational efficiency or favorable market conditions contributing to enhanced profitability.
- FedEx Services Profit Margin Data
- No data was provided for FedEx Services profit margins in the available timeframe, indicating either a lack of reporting or data unavailability for this segment.
Segment Profit Margin: FedEx Express
FedEx Corp.; FedEx Express; segment profit margin calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 776) | 1,064) | 2,922) | 2,810) | 996) | 2,123) |
| Revenue | 40,857) | 42,743) | 45,814) | 42,078) | 35,513) | 37,331) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 1.90% | 2.49% | 6.38% | 6.68% | 2.80% | 5.69% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 776 ÷ 40,857 = 1.90%
- Revenue Trends
- The revenue for the segment displayed variability over the six-year period. Starting at $37,331 million in 2019, it declined to $35,513 million in 2020, likely reflecting external economic or operational challenges. Subsequently, revenue recovered significantly to peak at $45,814 million in 2022, representing the highest point in the interval. However, the last two years saw a consistent decline, with revenues decreasing to $42,743 million in 2023 and further to $40,857 million in 2024. Overall, the revenue trend indicates recovery after an initial dip but a recent downward trajectory.
- Operating Income (Loss) Trends
- Operating income experienced pronounced fluctuations across the examined years. The highest operating income was recorded in 2022 at $2,922 million, an increase from $2,810 million in 2021. Prior to this, there was a notable drop in 2020 to $996 million from $2,123 million in 2019, signaling a significant operational or market impact. From the 2022 peak, operating income declined sharply in 2023 to $1,064 million and continued downward to $776 million in 2024. This pattern suggests operational profitability reached its height in 2022 but has weakened markedly since then.
- Segment Profit Margin Analysis
- The segment profit margin mirrors the trends seen in operating income, highlighting shifts in efficiency and profitability. The margin decreased from 5.69% in 2019 to a low of 2.8% in 2020, indicating reduced profitability. A subsequent rise occurred in 2021 and 2022, reaching 6.68% and 6.38% respectively, consistent with the revenue and operating income peaks. However, the margin fell significantly in 2023 to 2.49% and further declined to 1.9% in 2024, representing the lowest margin observed in the period. This decline points to increasing pressure on profitability in recent years despite initially strong performance.
- Overall Insights
- The segment exhibited resilience following a downturn in 2020, with recovery in revenue, operating income, and profit margin through 2021 and 2022. Nevertheless, the past two years have shown a clear reversal of this trend, with declining revenue, reduced operating income, and contracting profit margins. This suggests emerging challenges impacting profitability and efficiency that warrant further examination. The declining margins, in particular, highlight deteriorating cost control or pricing power within the segment during the latest period.
Segment Profit Margin: FedEx Ground
FedEx Corp.; FedEx Ground; segment profit margin calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 4,049) | 3,140) | 2,642) | 3,193) | 2,014) | 2,640) |
| Revenue | 34,256) | 33,507) | 33,232) | 30,496) | 22,733) | 20,522) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 11.82% | 9.37% | 7.95% | 10.47% | 8.86% | 12.86% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 4,049 ÷ 34,256 = 11.82%
The financial data reflects the performance trends of the FedEx Ground segment over a six-year period ending May 31, 2024. Several key metrics are considered: operating income, revenue, and segment profit margin.
- Operating Income (in US$ millions)
- Operating income showed variability throughout the period. It started at 2,640 million in 2019, declined to a low of 2,014 million in 2020, likely impacted by external factors in that year. Subsequently, it recovered strongly, peaking at 3,193 million in 2021, followed by a dip to 2,642 million in 2022. From 2022 onward, operating income progressively increased, reaching the highest value of 4,049 million in 2024. This trend suggests operational improvements or efficiencies implemented after 2022.
- Revenue (in US$ millions)
- Revenue demonstrated consistent growth across the entire timeframe. Beginning at 20,522 million in 2019, revenues rose steadily each year, culminating at 34,256 million in 2024. The largest jump appears between 2020 and 2021 where revenue surged by more than 7,700 million. The ongoing increase points to expanding business activity, market penetration, or pricing adjustments within the FedEx Ground segment.
- Segment Profit Margin (in %)
- Profit margin experienced notable fluctuations over the period. Starting at 12.86% in 2019, margin decreased significantly to 8.86% in 2020. It saw some recovery in 2021 to 10.47%, but dipped again to 7.95% in 2022, the lowest level in the dataset. Thereafter, it steadily improved, reaching 11.82% in 2024, nearly returning to the initial 2019 level. This pattern indicates variability in cost control or pricing power over time, with a recent trend towards improved profitability efficiency.
In summary, the FedEx Ground segment experienced a challenging period around 2020 and 2022 with contractions in operating income and profit margins. However, both metrics show a strong recovery trend post-2022, aligned with steady revenue growth. The recent improvements in segment profit margin and operating income suggest enhanced operational management and possibly favorable market conditions contributing to improved segment profitability.
Segment Profit Margin: FedEx Freight
FedEx Corp.; FedEx Freight; segment profit margin calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 1,814) | 1,925) | 1,663) | 1,005) | 580) | 615) |
| Revenue | 9,082) | 9,632) | 9,532) | 7,833) | 7,102) | 7,582) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 19.97% | 19.99% | 17.45% | 12.83% | 8.17% | 8.11% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,814 ÷ 9,082 = 19.97%
- Operating Income (Loss)
- Operating income experienced a decline from 615 million USD in 2019 to 580 million USD in 2020. This was followed by a significant recovery and growth, reaching a peak of 1,925 million USD in 2023. A slight decrease to 1,814 million USD was observed in 2024, indicating a modest pullback after the peak but maintaining a substantially higher level than earlier years.
- Revenue
- Revenue showed a decrease from 7,582 million USD in 2019 to 7,102 million USD in 2020. It then rebounded to 7,833 million USD in 2021 and continued an upward trajectory to 9,632 million USD in 2023. In 2024, revenue declined slightly to 9,082 million USD, suggesting some volatility but overall positive growth compared to prior years.
- Segment Profit Margin
- Profit margins remained relatively stable at approximately 8.1% during 2019 and 2020. A notable improvement occurred in 2021, rising to 12.83%, followed by consistent growth in the subsequent years. Margins peaked near 20% in 2023 and slightly declined to 19.97% in 2024, showcasing enhanced operational efficiency and profitability over the period.
- Summary
- The segment demonstrated resilience and strong recovery after 2020, with operating income and revenue both increasing significantly through 2023, accompanied by an impressive rise in profit margins. The slight decreases in 2024 for both revenue and operating income, alongside stable margins at around 20%, may indicate market or operational adjustments following a period of substantial growth.
Segment Profit Margin: FedEx Services
FedEx Corp.; FedEx Services; segment profit margin calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | —) | —) | —) | —) | —) | —) |
| Revenue | 260) | 301) | 253) | 32) | 22) | 1,691) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 0 ÷ 260 = 0.00%
The financial data for the FedEx Services reportable segment reveals clear and notable trends over the six-year period ending May 31, 2024.
- Revenue
- The revenue figures show a significant fluctuation across the years. In 2019, the segment generated $1,691 million, which drastically declined to $22 million in 2020. This extremely low level persisted with $32 million recorded in 2021, followed by a substantial recovery in 2022 with $253 million, and further increased slightly to $301 million in 2023. However, the latest figure for 2024 shows a decrease to $260 million.
- Operating Income (Loss) and Segment Profit Margin
- Data for operating income or loss, as well as the segment profit margin, are not presented for any of the years. This lack of information limits the ability to assess profitability or efficiency trends within the segment.
Overall, the revenue pattern indicates a period of significant operational contraction or a possible restructuring from 2019 to 2021, followed by a rebound beginning in 2022. Despite the recovery, the revenue in 2024 is lower than the peak in 2023, suggesting potential challenges or decreased demand affecting the segment's performance in the most recent period.
Segment Return on Assets (Segment ROA)
FedEx Corp., ROA by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 1.59% | 2.23% | 6.14% | 6.06% | 2.41% | 6.39% |
| FedEx Ground | 22.64% | 8.53% | 8.09% | 10.96% | 8.15% | 15.03% |
| FedEx Freight | 15.93% | 18.88% | 18.68% | 13.63% | 9.01% | 12.99% |
| FedEx Services | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Based on: 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), 10-K (reporting date: 2019-05-31).
- FedEx Express
- The return on assets (ROA) for the FedEx Express segment shows a generally declining trend over the analyzed period. Starting at 6.39% in 2019, the ROA sharply dropped to 2.41% in 2020, which may indicate challenges faced during that year. Although there was a partial recovery in 2021 and 2022 with ROAs of 6.06% and 6.14% respectively, the segment experienced another decline in the subsequent years, falling to 2.23% in 2023 and further down to 1.59% in 2024. This indicates a weakening profitability relative to assets in the latter period.
- FedEx Ground
- The FedEx Ground segment experienced fluctuating ROA figures during the period under review. The ROA decreased significantly from 15.03% in 2019 to 8.15% in 2020, likely reflecting external pressures or operational challenges. The segment showed some recovery in 2021 with an ROA of 10.96%, followed by a slight decline to 8.09% in 2022. In 2023, the ROA was relatively stable at 8.53%, but the year 2024 saw a substantial increase to 22.64%, indicating a significant improvement in asset profitability and possibly increased operational efficiency or favorable market conditions in the most recent year.
- FedEx Freight
- The ROA for the FedEx Freight segment demonstrates a mixed but overall improving trend until 2023, followed by a slight decline in 2024. Beginning at 12.99% in 2019, the ROA dropped to 9.01% in 2020, likely due to challenges similar to those in other segments. It then increased to 13.63% in 2021 and further to 18.68% in 2022, peaking at 18.88% in 2023. However, 2024 showed a decrease to 15.93%, which may suggest emerging headwinds or normalization after peak performance. Despite this slight recent decline, the segment’s profitability relative to assets remains robust compared to earlier years.
- FedEx Services
- There is no ROA data reported for FedEx Services for any of the periods, indicating either non-reporting or absence of measurable segment data for this financial metric.
Segment ROA: FedEx Express
FedEx Corp.; FedEx Express; segment ROA calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 776) | 1,064) | 2,922) | 2,810) | 996) | 2,123) |
| Segment assets | 48,699) | 47,754) | 47,604) | 46,356) | 41,252) | 33,247) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 1.59% | 2.23% | 6.14% | 6.06% | 2.41% | 6.39% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 776 ÷ 48,699 = 1.59%
- Operating Income (Loss)
- The operating income displayed significant fluctuations over the analyzed period. There was a notable decline from 2,123 million USD in 2019 to 996 million USD in 2020. This was followed by a strong recovery in 2021 and 2022, reaching peaks of 2,810 million USD and 2,922 million USD respectively. However, in 2023 and 2024, operating income experienced a sharp decrease again, dropping to 1,064 million USD and further down to 776 million USD, indicating volatility in profitability.
- Segment Assets
- Segment assets exhibited a consistent upward trend throughout the period. Starting at 33,247 million USD in 2019, assets increased steadily each year, reaching 48,699 million USD by 2024. This suggests continuous investment or accumulation of assets within the segment over time.
- Segment Return on Assets (ROA)
- The segment return on assets mirrored the fluctuations seen in operating income but showed a declining trend overall. ROA fell sharply from 6.39% in 2019 to 2.41% in 2020. It then recovered somewhat in 2021 and 2022, registering 6.06% and 6.14% respectively. Nonetheless, from 2023 onwards, ROA declined again to 2.23% and then 1.59% in 2024, indicating decreasing efficiency in using assets to generate earnings.
Segment ROA: FedEx Ground
FedEx Corp.; FedEx Ground; segment ROA calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 4,049) | 3,140) | 2,642) | 3,193) | 2,014) | 2,640) |
| Segment assets | 17,884) | 36,815) | 32,645) | 29,134) | 24,700) | 17,561) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 22.64% | 8.53% | 8.09% | 10.96% | 8.15% | 15.03% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 4,049 ÷ 17,884 = 22.64%
- Operating Income (Loss)
- The operating income demonstrated some fluctuations over the years. It started at $2,640 million in 2019 and then declined to $2,014 million in 2020. This was followed by a significant recovery and growth phase, with income rising to $3,193 million in 2021. The figure dropped slightly again to $2,642 million in 2022, only to increase substantially to $3,140 million in 2023 and reaching a peak of $4,049 million in 2024. Overall, the trend shows volatility but an underlying growth trajectory, with the latest year marking the highest operating income during the period under review.
- Segment Assets
- Segment assets increased steadily from $17,561 million in 2019 to a high of $36,815 million in 2023. This represents more than a doubling of asset value in four years. However, a notable and significant decline occurred in 2024, with segment assets falling sharply to $17,884 million, nearly halving from the previous year. The initial growth phase suggests an expansion or investment period, whereas the sudden asset reduction in the final year may indicate asset disposals, reclassification, or other structural changes within the segment.
- Segment Return on Assets (ROA)
- The segment ROA showed a declining trend from 15.03% in 2019 to a low of 8.09% in 2022, with minor fluctuations in the intervening years (8.15% in 2020 and 10.96% in 2021). After 2022, the ROA slightly improved to 8.53% in 2023 before rising sharply to 22.64% in 2024. The initial decline in ROA despite growing asset bases from 2019 to 2023 suggests diminishing efficiency in generating income from assets over that period. The dramatic increase in 2024 aligns with the reduced asset base and increased operating income, reflecting a much more efficient use of assets or a structural shift that improved profitability relative to asset size.
Segment ROA: FedEx Freight
FedEx Corp.; FedEx Freight; segment ROA calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 1,814) | 1,925) | 1,663) | 1,005) | 580) | 615) |
| Segment assets | 11,389) | 10,197) | 8,904) | 7,371) | 6,434) | 4,736) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 15.93% | 18.88% | 18.68% | 13.63% | 9.01% | 12.99% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 1,814 ÷ 11,389 = 15.93%
- Operating Income (Loss)
- The operating income demonstrates a generally upward trend from May 31, 2019, to May 31, 2024, indicating improving profitability in the freight segment. Starting at $615 million in 2019, it experienced a slight decline to $580 million in 2020, likely reflecting external challenges during that period. However, the operating income rebounded significantly in the subsequent years, reaching a peak of $1,925 million in 2023. A marginal decrease to $1,814 million in 2024 suggests a small contraction yet maintaining a substantially higher level compared to prior years.
- Segment Assets
- The segment assets show a consistent increase throughout the period, indicating ongoing investment and expansion in the segment's asset base. The value rose from $4,736 million in 2019 to $11,389 million in 2024. This nearly 2.4 times growth over five years reflects substantial capital deployment, potentially supporting capacity enhancement or operational scaling.
- Segment Return on Assets (ROA)
- The segment ROA reveals fluctuations with an overall positive trend until recent years. Initially at 12.99% in 2019, it declined sharply to 9.01% in 2020, coinciding with the dip in operating income that year. Following 2020, ROA recovered strongly, peaking at 18.88% in 2023, indicating improved operational efficiency and profitability relative to assets. In 2024, ROA dropped to 15.93%, which, despite the decline, remains significantly higher than early period figures, suggesting a strong return on the larger asset base albeit with some moderation.
- Summary of Trends
- Over the six-year horizon, the freight segment displays a pattern of growth in both profitability and asset base, with a minor setback in operating income and ROA in the most recent year. The persistent expansion of assets supports the increased operating income, though the slight reduction in ROA in 2024 implies that asset utilization efficiency may have softened. Overall, the segment has demonstrated resilience and strong operational performance following the 2020 downturn.
Segment ROA: FedEx Services
FedEx Corp.; FedEx Services; segment ROA calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | —) | —) | —) | —) | —) | —) |
| Segment assets | 7,078) | 7,415) | 8,389) | 8,639) | 7,285) | 6,972) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Segment assets
= 100 × 0 ÷ 7,078 = 0.00%
The reportable segment data for FedEx Services reveals limited financial information over the specified periods from May 31, 2019, to May 31, 2024. Notably, key performance indicators such as operating income (loss) and segment return on assets (ROA) are missing for all years, which restricts the ability to perform a comprehensive profitability or efficiency analysis.
However, the segment assets display a more complete data set that allows for some observations. The total segment assets showed a steady increase from 6,972 million USD in 2019 to 8,639 million USD in 2021. This represents a growth period with a peak in asset size during 2021, suggesting possible investments or asset acquisitions occurring within this timeframe.
Following the peak in 2021, segment assets declined to 8,389 million USD in 2022 and further decreased to 7,415 million USD in 2023, continuing down to 7,078 million USD in 2024. This downward trend over the last three reported years indicates a contraction or divestiture within the FedEx Services segment, possibly reflecting asset disposals, restructuring efforts, or efficiency improvements by reducing asset base.
Overall, the asset trend demonstrates an initial growth phase followed by a consistent reduction in asset holdings in the latter years. This fluctuation might impact the operational capacity and strategic direction of the segment. Due to the lack of operating income and ROA data, it is not possible to correlate these asset changes with profitability or overall segment performance definitively.
Segment Asset Turnover
FedEx Corp., asset turnover by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 0.84 | 0.90 | 0.96 | 0.91 | 0.86 | 1.12 |
| FedEx Ground | 1.92 | 0.91 | 1.02 | 1.05 | 0.92 | 1.17 |
| FedEx Freight | 0.80 | 0.94 | 1.07 | 1.06 | 1.10 | 1.60 |
| FedEx Services | 0.04 | 0.04 | 0.03 | 0.00 | 0.00 | 0.24 |
Based on: 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), 10-K (reporting date: 2019-05-31).
- FedEx Express
- The asset turnover ratio for this segment shows a declining trend over the six-year period. It started at 1.12 in 2019 and generally decreased each year, reaching 0.84 in 2024. Notably, the drop was most pronounced between 2019 and 2020, followed by minor fluctuations but an overall downward trajectory.
- FedEx Ground
- This segment exhibited variability with an initial decline from 1.17 in 2019 to 0.92 in 2020, then an improvement to 1.05 in 2021, followed by a slight decline again to 0.91 in 2023. However, there was a significant increase in 2024, with the ratio nearly doubling to 1.92. This sudden spike may indicate improved utilization or changes in asset management during that period.
- FedEx Freight
- The ratio for FedEx Freight declined sharply from 1.6 in 2019 to 1.1 in 2020, then continued a more gradual decline through to 0.8 in 2024. This continuous decrease suggests weakening asset efficiency in generating revenue within this segment over the years.
- FedEx Services
- This segment has consistently shown very low asset turnover ratios, with the ratio at 0.24 in 2019 dropping to zero for two consecutive years (2020 and 2021), then showing minimal improvement to 0.04 in both 2022 and 2023. The persistently low values indicate limited asset utilization or possibly the nature of the services provided requiring fewer assets.
Segment Asset Turnover: FedEx Express
FedEx Corp.; FedEx Express; segment asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 40,857) | 42,743) | 45,814) | 42,078) | 35,513) | 37,331) |
| Segment assets | 48,699) | 47,754) | 47,604) | 46,356) | 41,252) | 33,247) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.84 | 0.90 | 0.96 | 0.91 | 0.86 | 1.12 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Segment assets
= 40,857 ÷ 48,699 = 0.84
- Revenue Trends
- Revenue showed variability over the six-year period. After an initial slight decline from 37,331 million US dollars in 2019 to 35,513 million in 2020, revenue increased significantly to 42,078 million in 2021 and further to 45,814 million in 2022. However, there was a downward trend afterward, with revenue decreasing to 42,743 million in 2023 and continuing to decline to 40,857 million in 2024. This suggests a peak in revenue in 2022, followed by two consecutive years of decline.
- Segment Assets Analysis
- Segment assets demonstrated a consistent upward trend over the same period. Starting from 33,247 million US dollars in 2019, assets increased steadily each year, reaching 41,252 million in 2020, 46,356 million in 2021, 47,604 million in 2022, 47,754 million in 2023, and finally 48,699 million in 2024. This indicates ongoing investment or accumulation of assets within the segment.
- Segment Asset Turnover Dynamics
- The segment asset turnover ratio, which measures the efficiency of asset use to generate revenue, exhibited a declining trend. Beginning at 1.12 in 2019, it dropped to 0.86 in 2020, showing reduced efficiency during that year. The ratio improved slightly to 0.91 in 2021 and 0.96 in 2022, coinciding with revenue growth, but then it decreased again to 0.90 in 2023 and further to 0.84 in 2024. Overall, the ratio in 2024 is below the starting point in 2019 and reflects a gradual reduction in asset utilization efficiency.
- Summary Insights
- The data reveals that while segment assets have grown steadily, revenue performance has been more volatile, peaking in 2022 before declining in subsequent years. Correspondingly, asset turnover ratios reflect these trends, indicating fluctuations in how effectively assets are employed to generate revenue. The decreasing asset turnover towards the end of the period suggests potential challenges in maintaining revenue growth aligned with asset expansion, pointing to a possible decrease in operational efficiency or changes in market conditions affecting the segment.
Segment Asset Turnover: FedEx Ground
FedEx Corp.; FedEx Ground; segment asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 34,256) | 33,507) | 33,232) | 30,496) | 22,733) | 20,522) |
| Segment assets | 17,884) | 36,815) | 32,645) | 29,134) | 24,700) | 17,561) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.92 | 0.91 | 1.02 | 1.05 | 0.92 | 1.17 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Segment assets
= 34,256 ÷ 17,884 = 1.92
The analysis of the FedEx Ground segment data over the six-year period reveals notable trends in revenue, segment assets, and segment asset turnover ratios.
- Revenue
- There is a clear upward trend in revenue from May 31, 2019, to May 31, 2024. Revenue increased from $20,522 million in 2019 to $34,256 million in 2024. The growth was particularly strong between 2020 and 2021, where revenue jumped from $22,733 million to $30,496 million. After 2021, revenue continued to increase but at a more moderate pace.
- Segment Assets
- Segment assets showed a rising trend from 2019 through 2023, climbing from $17,561 million to $36,815 million. This represents more than doubling over this five-year period. However, in the latest reported period ending May 31, 2024, segment assets declined sharply to $17,884 million, which is nearly half of the previous year's value and close to the original 2019 level. This sudden decline indicates a significant divestiture, reallocation, or impairment event affecting the asset base of the segment.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency of asset utilization in generating revenue, exhibited fluctuations over the years. Starting at 1.17 in 2019, the ratio declined to 0.92 in 2020, then partially recovered to 1.05 and 1.02 in 2021 and 2022 respectively. A further decrease to 0.91 was recorded in 2023. Notably, in 2024, the ratio surged significantly to 1.92. This sharp increase coincides with the substantial reduction in segment assets and continued revenue growth, suggesting improved asset utilization or possibly a change in asset composition.
In summary, the segment demonstrated strong revenue growth over the period, with a considerable expansion of assets through 2023 followed by a sudden reduction in 2024. The asset turnover ratio trends reflect these changes, indicating variable efficiency in asset use, with a particularly high efficiency in the final year analyzed. The data suggests a strategic shift or restructuring affecting asset levels while maintaining or improving revenue generation capability.
Segment Asset Turnover: FedEx Freight
FedEx Corp.; FedEx Freight; segment asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 9,082) | 9,632) | 9,532) | 7,833) | 7,102) | 7,582) |
| Segment assets | 11,389) | 10,197) | 8,904) | 7,371) | 6,434) | 4,736) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.80 | 0.94 | 1.07 | 1.06 | 1.10 | 1.60 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Segment assets
= 9,082 ÷ 11,389 = 0.80
- Revenue
- The revenue experienced a decline from 7,582 million USD in 2019 to 7,102 million USD in 2020. This was followed by a substantial recovery and growth through 2021 and 2022, reaching a peak of 9,632 million USD in 2023. However, there was a slight decrease in revenue to 9,082 million USD in 2024, indicating a modest contraction after the peak year.
- Segment Assets
- Segment assets showed a consistent upward trend throughout the analyzed period, increasing from 4,736 million USD in 2019 to 11,389 million USD in 2024. The growth accelerated especially after 2020, with assets nearly doubling by 2024, reflecting ongoing investments or asset accumulation in the segment.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency of asset use to generate revenue, declined steadily over the period. Starting at 1.6 in 2019, it dropped sharply to 1.1 in 2020 and continued to decrease gradually, reaching 0.8 in 2024. This declining ratio suggests that despite the increasing asset base, revenue generation relative to assets has become less efficient over time.
- Summary
- Overall, there is a notable pattern of asset expansion coupled with diminishing asset turnover, indicating that while the segment has grown its asset base considerably, its ability to generate revenue per unit of asset has declined. Revenue showed some volatility with a dip in 2020, a recovery peaking in 2023, and a slight reduction thereafter. This combination signals a potential concern regarding the efficient deployment of assets in driving revenue growth in recent years.
Segment Asset Turnover: FedEx Services
FedEx Corp.; FedEx Services; segment asset turnover calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 260) | 301) | 253) | 32) | 22) | 1,691) |
| Segment assets | 7,078) | 7,415) | 8,389) | 8,639) | 7,285) | 6,972) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 0.04 | 0.04 | 0.03 | 0.00 | 0.00 | 0.24 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment asset turnover = Revenue ÷ Segment assets
= 260 ÷ 7,078 = 0.04
- Revenue Trends
- Revenue exhibited a sharp decline from US$1,691 million in May 2019 to a minimal US$22 million by May 2020. In the following years, there was a gradual recovery, with revenue increasing to US$253 million in May 2022 and peaking at US$301 million in May 2023 before slightly decreasing to US$260 million in May 2024. Despite this rebound, revenue remained significantly below the 2019 level throughout the period.
- Segment Assets Development
- Segment assets increased from US$6,972 million in May 2019 to a high of US$8,639 million in May 2021, indicating asset growth during this period. After 2021, there was a consistent downward movement in assets, falling to US$7,078 million by May 2024, approaching the levels observed in 2019. This suggests a reduction or reallocation of assets over the last three years.
- Segment Asset Turnover Analysis
- The segment asset turnover ratio, which measures revenue generated per unit of assets, was relatively low at 0.24 in May 2019. It dropped to zero in 2020 and 2021, consistent with the very low revenue during those years. Subsequently, a modest increase occurred, reaching 0.04 in 2023 and remaining stable in 2024. However, this ratio remained significantly below the 2019 figure, indicating lower efficiency in utilizing assets to generate revenue in the most recent years.
- Overall Insights
- The data reflects a period of significant disruption beginning in 2020, with revenue plummeting sharply and segment asset turnover dropping to zero, suggesting a major operational impact. The recovery phase from 2022 onward shows improvements in both revenue and asset turnover, though the segment has yet to return to pre-2019 performance levels. Concurrently, the decline in segment assets after peaking in 2021 indicates possible divestitures or restructuring activities aimed at optimizing asset base amid changing business conditions.
Segment Capital Expenditures to Depreciation
FedEx Corp., capital expenditures to depreciation by reportable segment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 1.52 | 1.45 | 1.81 | 1.80 | 1.88 | 1.97 |
| FedEx Ground | 0.91 | 1.96 | 2.33 | 1.72 | 1.37 | 1.11 |
| FedEx Freight | 1.15 | 1.44 | 0.79 | 0.77 | 1.41 | 1.64 |
| FedEx Services | 0.61 | 0.81 | 1.10 | 1.11 | 1.28 | 1.25 |
Based on: 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), 10-K (reporting date: 2019-05-31).
The analysis of the capital expenditures to depreciation ratios across the reported segments over the periods from May 31, 2019, to May 31, 2024 reveals distinct patterns and trends within the company's various business units.
- FedEx Express
- The ratio demonstrates a gradual decline from 1.97 in 2019 to 1.8 in 2021, followed by a slight increase to 1.81 in 2022. Subsequently, there is a notable decrease to 1.45 in 2023, with a modest rebound to 1.52 in 2024. This indicates a generally decreasing trend in capital expenditures relative to depreciation, with some recovery in the most recent year.
- FedEx Ground
- This segment exhibits a rising trend from 1.11 in 2019 to a peak of 2.33 in 2022, suggesting increased investment in capital assets relative to depreciation during this period. After reaching this peak, the ratio declines sharply to 1.96 in 2023 and further to 0.91 in 2024, indicating a significant reduction in capital expenditures relative to depreciation more recently.
- FedEx Freight
- The ratio decreases steadily from 1.64 in 2019 to a low of 0.77 in 2021 and 0.79 in 2022, implying reduced capital spending relative to asset depreciation. However, the ratio rebounds to 1.44 in 2023 before declining again to 1.15 in 2024, showing fluctuations but a tendency towards modest recovery followed by a recent decrease.
- FedEx Services
- A consistent downward trend is observed across the periods, with the ratio decreasing from 1.25 in 2019 to 0.61 in 2024. This steady decline reflects progressively lower capital expenditures relative to depreciation, indicating a possible scaling back or stabilization of investment levels in this segment over time.
In summary, FedEx Express and FedEx Services segments show an overall decreasing tendency in the capital expenditure to depreciation ratio, suggesting more conservative or lower investment relative to asset wear and tear. Conversely, FedEx Ground experienced a significant surge in investment intensity until 2022, followed by a marked reduction. FedEx Freight's activity appears more variable, with a low point around 2021-2022 and partial recovery thereafter but not sustaining upward momentum. These trends imply varying strategic investment priorities and capital allocation approaches among the segments over the analyzed periods.
Segment Capital Expenditures to Depreciation: FedEx Express
FedEx Corp.; FedEx Express; segment capital expenditures to depreciation calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 3,291) | 3,055) | 3,637) | 3,503) | 3,560) | 3,550) |
| Depreciation and amortization | 2,172) | 2,105) | 2,007) | 1,946) | 1,894) | 1,801) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.52 | 1.45 | 1.81 | 1.80 | 1.88 | 1.97 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 3,291 ÷ 2,172 = 1.52
- Capital Expenditures
- Capital expenditures showed a generally declining trend over the period analyzed. Starting at 3,550 million USD in 2019, the amount spent remained relatively stable around the 3,500 million USD mark through 2022, before decreasing noticeably to 3,055 million USD in 2023. A slight recovery occurred in 2024, with expenditures rising modestly to 3,291 million USD.
- Depreciation and Amortization
- Depreciation and amortization expenses consistently increased throughout the period, rising from 1,801 million USD in 2019 to 2,172 million USD in 2024. This steady upward trend highlights ongoing asset usage and the aging of capital assets over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation exhibited a declining pattern from 1.97 in 2019 to 1.52 in 2024. This decrease indicates that capital spending has not kept pace with the rate of depreciation. The ratio dropped notably in 2023 to 1.45—the lowest in the period—suggesting a reduced investment relative to asset consumption during that year, with a slight improvement observed in 2024.
Segment Capital Expenditures to Depreciation: FedEx Ground
FedEx Corp.; FedEx Ground; segment capital expenditures to depreciation calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 1,018) | 1,995) | 2,139) | 1,446) | 1,083) | 808) |
| Depreciation and amortization | 1,119) | 1,020) | 919) | 843) | 789) | 728) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.91 | 1.96 | 2.33 | 1.72 | 1.37 | 1.11 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 1,018 ÷ 1,119 = 0.91
- Capital Expenditures
- The capital expenditures showed an overall increasing trend from 2019 to 2022, rising from $808 million to a peak of $2,139 million in 2022. However, this upward trajectory was interrupted in the subsequent years, with expenditures declining to $1,995 million in 2023 and a significant drop to $1,018 million in 2024.
- Depreciation and Amortization
- The depreciation and amortization expenses consistently increased throughout the observed period, starting at $728 million in 2019 and reaching $1,119 million by 2024. This steady growth indicates an ongoing allocation of costs related to long-term asset usage over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation started at 1.11 in 2019, indicating capital spending slightly exceeding depreciation. This ratio increased markedly, peaking at 2.33 in 2022, suggesting significant investment activity relative to asset depreciation. Thereafter, the ratio declined sharply to 1.96 in 2023 and further to 0.91 in 2024, reflecting a reduction in capital expenditures relative to the ongoing depreciation and amortization charges.
- Summary of Trends and Insights
- Initially, capital expenditures outpaced depreciation indicating investment in new assets or upgrades. This peaked in 2022 with substantial capital deployment, which may have been aimed at expansion or modernization efforts. Despite the subsequent reduction in capital expenditures during 2023 and 2024, depreciation continued to rise steadily, implying that the asset base was still considerable and possibly aging. The decline in the capital expenditures to depreciation ratio below 1 in 2024 suggests the segment is spending less on asset replenishment relative to the consumption of existing assets, which could have implications for future capacity or operational efficiency if this trend persists.
Segment Capital Expenditures to Depreciation: FedEx Freight
FedEx Corp.; FedEx Freight; segment capital expenditures to depreciation calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 461) | 556) | 319) | 320) | 539) | 544) |
| Depreciation and amortization | 402) | 387) | 406) | 417) | 381) | 332) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.15 | 1.44 | 0.79 | 0.77 | 1.41 | 1.64 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 461 ÷ 402 = 1.15
- Capital Expenditures
- The capital expenditures exhibited a fluctuating trend over the observed periods. Starting from 544 million USD in May 2019, expenditures slightly decreased to 539 million USD by May 2020. A significant reduction followed, reaching the lowest levels of 320 million USD and 319 million USD in May 2021 and May 2022, respectively. However, in the subsequent years, capital expenditures increased to 556 million USD in May 2023 before declining again to 461 million USD by May 2024. This pattern indicates periods of notable investment scaling back followed by more aggressive capital deployment.
- Depreciation and Amortization
- Depreciation and amortization expenses demonstrated an overall upward trajectory initially, rising from 332 million USD in May 2019 to a peak of 417 million USD in May 2021. It then slightly declined to 406 million USD in May 2022 and further to 387 million USD in May 2023. The figure saw a modest rebound to 402 million USD in May 2024. This pattern suggests incremental asset base growth with some variability possibly due to changes in asset composition or amortization schedules.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation showed considerable variation. Initially, the ratio was strong at 1.64 in May 2019, suggesting capital investments significantly outpaced depreciation. Over the next two years, this ratio dropped substantially to 0.77 in May 2021 and 0.79 in May 2022, reflecting a period where capital spending was considerably lower relative to asset deprecation. Recovery occurred in May 2023 with the ratio rising back to 1.44 before tapering off again to 1.15 in May 2024. The ratio’s fluctuation highlights cyclical investment behavior relative to asset wear and aging during the period under review.
Segment Capital Expenditures to Depreciation: FedEx Services
FedEx Corp.; FedEx Services; segment capital expenditures to depreciation calculation
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 282) | 431) | 565) | 512) | 527) | 528) |
| Depreciation and amortization | 465) | 529) | 513) | 462) | 413) | 424) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.61 | 0.81 | 1.10 | 1.11 | 1.28 | 1.25 |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 282 ÷ 465 = 0.61
- Capital Expenditures
- Capital expenditures exhibited a declining trend over the analyzed period, decreasing consistently from US$528 million in May 31, 2019 to US$282 million by May 31, 2024. Notably, there was a sharper drop between the fiscal years ending May 31, 2023 and May 31, 2024, where capital expenditures decreased from US$431 million to US$282 million.
- Depreciation and Amortization
- Depreciation and amortization expenses showed a general upward trend from US$424 million in 2019 to a peak of US$529 million in 2023, followed by a decline to US$465 million in 2024. This rise in expenses until 2023 suggests increasing asset base or accelerated recognition of depreciation, while the subsequent decrease might indicate asset sales, adjustments, or changes in depreciation policies.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation declined steadily throughout the period. Starting at 1.25 in 2019, it decreased incrementally to a low of 0.61 by 2024. This downward trend indicates that capital investments are increasingly lower relative to the depreciation expense, implying potential aging of assets, reduced reinvestment activity, or a strategic shift to optimizing existing assets rather than acquiring new ones.
- Overall Insights
- The data reflects a clear contraction in capital investments coupled with significant depreciation charges, leading to a diminishing ratio of new capital expenditures relative to asset consumption. This pattern may suggest a strategic phase of asset consolidation or cautious capital deployment in the segment, impacting future asset base growth and possibly signaling a focus on operational efficiency or cost containment.
Revenue
FedEx Corp., revenue by reportable segment
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 40,857) | 42,743) | 45,814) | 42,078) | 35,513) | 37,331) |
| FedEx Ground | 34,256) | 33,507) | 33,232) | 30,496) | 22,733) | 20,522) |
| FedEx Freight | 9,082) | 9,632) | 9,532) | 7,833) | 7,102) | 7,582) |
| FedEx Services | 260) | 301) | 253) | 32) | 22) | 1,691) |
| Corporate, other and eliminations | 3,238) | 3,972) | 4,681) | 3,520) | 3,847) | 2,567) |
| Consolidated total | 87,693) | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) |
Based on: 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), 10-K (reporting date: 2019-05-31).
- FedEx Express Revenue
- Revenue fluctuated over the six-year period, initially declining from 37,331 million USD in 2019 to 35,513 million USD in 2020. This was followed by a notable increase, peaking at 45,814 million USD in 2022. However, subsequent years experienced a decline, with revenue falling to 40,857 million USD by 2024, indicating volatility and challenges in sustaining growth.
- FedEx Ground Revenue
- FedEx Ground demonstrated a consistent upward trend throughout the period. Revenue rose steadily from 20,522 million USD in 2019 to 34,256 million USD in 2024, showing strong, continuous growth, especially significant between 2020 and 2021. This segment appears to be a key driver of increasing revenues.
- FedEx Freight Revenue
- The Freight segment displayed moderate fluctuations. After a slight decrease from 7,582 million USD in 2019 to 7,102 million USD in 2020, revenue increased to 9,632 million USD in 2023 before experiencing a downturn to 9,082 million USD in 2024. The overall trajectory is upward but less stable compared to FedEx Ground.
- FedEx Services Revenue
- This segment showed minimal revenue in early years, with values close to zero in 2020 and 2021, followed by notable growth to 301 million USD in 2023. However, 2024 saw a reduction to 260 million USD, suggesting nascent but volatile development within this area.
- Corporate, Other and Eliminations
- This line item reflects variability, increasing from 2,567 million USD in 2019 to a peak of 4,681 million USD in 2022 before declining to 3,238 million USD in 2024. The fluctuations suggest changes in internal allocations or adjustments that impact consolidated figures but do not represent operational revenue.
- Consolidated Total Revenue
- Total revenue remained relatively stable between 2019 (69,693 million USD) and 2020 (69,217 million USD), followed by a pronounced increase to 93,512 million USD in 2022. Post-2022, total revenue declined, reaching 87,693 million USD in 2024. Despite the dip, the overall trend across the period points to growth driven largely by the Ground segment's expansion mitigating declines in Express and other areas.
Depreciation and amortization
FedEx Corp., depreciation and amortization by reportable segment
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 2,172) | 2,105) | 2,007) | 1,946) | 1,894) | 1,801) |
| FedEx Ground | 1,119) | 1,020) | 919) | 843) | 789) | 728) |
| FedEx Freight | 402) | 387) | 406) | 417) | 381) | 332) |
| FedEx Services | 465) | 529) | 513) | 462) | 413) | 424) |
| Corporate, other and eliminations | 129) | 135) | 125) | 125) | 138) | 68) |
| Consolidated total | 4,287) | 4,176) | 3,970) | 3,793) | 3,615) | 3,353) |
Based on: 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), 10-K (reporting date: 2019-05-31).
- FedEx Express
- The depreciation and amortization expenses for FedEx Express show a consistent upward trend over the six-year period. Starting at $1,801 million in 2019, the expenses steadily increased each year, reaching $2,172 million in 2024. This reflects a gradual rise in asset base or capital expenditures within this segment.
- FedEx Ground
- FedEx Ground's depreciation and amortization figures exhibit a notable growth trend, rising from $728 million in 2019 to $1,119 million in 2024. The increase appears to accelerate particularly after 2020, indicating possible expansion or increased investment in ground operations infrastructure.
- FedEx Freight
- The depreciation and amortization expenses for FedEx Freight increased from $332 million in 2019 to a peak of $417 million in 2021. However, this was followed by a decline to $387 million in 2023, with a slight rebound to $402 million in 2024. This pattern suggests a period of intensified asset utilization or investment followed by stabilization or asset disposals.
- FedEx Services
- FedEx Services shows a variable but generally increasing trend from $424 million in 2019 to a peak of $529 million in 2023. There is a decrease to $465 million in 2024, which may indicate a change in the asset base or reclassification of expenses within the corporate structure.
- Corporate, other and eliminations
- This category exhibits fluctuations with an initial increase from $68 million in 2019 to $138 million in 2020, followed by a slight decline and stabilization around $125 to $135 million through to 2024. These movements suggest variable allocations of depreciation and amortization expenses in non-operating or support segments.
- Consolidated total
- The consolidated total depreciation and amortization expense consistently rises year over year, from $3,353 million in 2019 to $4,287 million in 2024. This steady increase reflects overall growth in the company's investment in depreciable and amortizable assets across all segments.
- Summary
- Overall, the data reveals a consistent upward trajectory in depreciation and amortization expenses for the majority of FedEx's reportable segments, with FedEx Express and FedEx Ground showing the most significant and steady increases. FedEx Freight and FedEx Services display some variability but generally maintain higher expense levels compared to earlier years. The corporate and other category remains relatively stable after an initial spike. The rising consolidated totals indicate expansion and growing asset bases supporting the company's operations.
Operating income (loss)
FedEx Corp., operating income (loss) by reportable segment
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 776) | 1,064) | 2,922) | 2,810) | 996) | 2,123) |
| FedEx Ground | 4,049) | 3,140) | 2,642) | 3,193) | 2,014) | 2,640) |
| FedEx Freight | 1,814) | 1,925) | 1,663) | 1,005) | 580) | 615) |
| FedEx Services | —) | —) | —) | —) | —) | —) |
| Corporate, other and eliminations | (1,080) | (1,217) | (982) | (1,151) | (1,173) | (912) |
| Consolidated total | 5,559) | 4,912) | 6,245) | 5,857) | 2,417) | 4,466) |
Based on: 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), 10-K (reporting date: 2019-05-31).
The annual reportable segment operating income data reveals several notable trends over the six-year period ending May 31, 2024. The data show fluctuations across the primary segments: FedEx Express, FedEx Ground, FedEx Freight, and the Corporate, other and eliminations category. The FedEx Services segment has no reported data for the analyzed years.
- FedEx Express
- This segment displays a fluctuating pattern with a peak in May 31, 2021, where operating income reaches 2,810 million US dollars, followed by a slight increase to 2,922 million in 2022. However, a marked decline occurs in the subsequent two years, dropping to 1,064 million in 2023 and further decreasing to 776 million in 2024. This indicates potential challenges or shifts impacting the express segment in recent years after previous growth.
- FedEx Ground
- The FedEx Ground segment exhibits overall growth with some variability. Starting from 2,640 million in 2019, the income declines to 2,014 million in 2020, potentially reflecting external pressures during that year. Recovery and strong growth follow, peaking sharply at 4,049 million in 2024, which is the highest value across all segments and years. This upward trajectory highlights FedEx Ground as a robust contributor to operating income, especially in the latest periods.
- FedEx Freight
- FedEx Freight shows consistent growth over the period. Operating income rises steadily from 615 million in 2019 to a peak of 1,925 million in 2023, though it slightly retreats to 1,814 million in 2024. Despite the small decline in the last year, the overall trend suggests positive development and increasing profitability within the freight segment.
- Corporate, other and eliminations
- This category consistently reports negative values, indicating expenses, administrative costs, or intersegment eliminations that reduce consolidated operating income. The losses worsen from -912 million in 2019 to a low point of -1,217 million in 2023, followed by a slight improvement to -1,080 million in 2024. This pattern suggests ongoing but somewhat variable overhead or consolidation adjustments.
- Consolidated Total
- The consolidated total operating income mirrors the segment variations with an initial decline from 4,466 million in 2019 to 2,417 million in 2020, likely reflecting economic or industry-wide impacts. A strong rebound occurs in 2021 (5,857 million) and 2022 (6,245 million), followed by a reduction in 2023 to 4,912 million. In 2024, the consolidated total increases again to 5,559 million, indicating moderate recovery and overall resilience.
In summary, the income analysis illustrates a strong performance in FedEx Ground and FedEx Freight segments, which have mostly driven gains in total operating income. FedEx Express experiences volatility and a downward trend in later years. The corporate and other category continually exerts downward pressure on consolidated results, though with some recovery in the final year. Overall, the consolidated operating income demonstrates a cycle of decline, recovery, and recent stabilization.
Segment assets
FedEx Corp., segment assets by reportable segment
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 48,699) | 47,754) | 47,604) | 46,356) | 41,252) | 33,247) |
| FedEx Ground | 17,884) | 36,815) | 32,645) | 29,134) | 24,700) | 17,561) |
| FedEx Freight | 11,389) | 10,197) | 8,904) | 7,371) | 6,434) | 4,736) |
| FedEx Services | 7,078) | 7,415) | 8,389) | 8,639) | 7,285) | 6,972) |
| Corporate, other and eliminations | 1,957) | (15,038) | (11,548) | (8,723) | (6,134) | (8,113) |
| Consolidated total | 87,007) | 87,143) | 85,994) | 82,777) | 73,537) | 54,403) |
Based on: 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), 10-K (reporting date: 2019-05-31).
- FedEx Express Segment Assets
- The assets of the FedEx Express segment show a consistent upward trend over the six-year period, increasing from $33,247 million in 2019 to $48,699 million in 2024. This represents a significant growth, with incremental increases each year except for a slight slowdown in growth between 2022 and 2023.
- FedEx Ground Segment Assets
- The FedEx Ground segment exhibits strong growth from 2019 to 2023, rising from $17,561 million to a peak of $36,815 million. However, there is a notable and abrupt decline in 2024, dropping to $17,884 million, which is nearly half the previous year's value. This sharp decrease disrupts the prior upward trajectory and warrants further investigation.
- FedEx Freight Segment Assets
- Assets in the FedEx Freight segment steadily increase throughout the period. Starting at $4,736 million in 2019, the segment grows year-over-year to reach $11,389 million in 2024. The growth rate appears consistent, reflecting steady expansion or investment in this segment.
- FedEx Services Segment Assets
- The FedEx Services segment sees an increase in assets from $6,972 million in 2019 to a high of $8,639 million in 2021. However, the assets decline gradually thereafter, settling at $7,078 million by 2024. This indicates a peak in 2021 followed by a period of contraction or reallocation of resources.
- Corporate, Other and Eliminations
- This category shows negative values from 2019 through 2023, increasing in negative magnitude from -$8,113 million to -$15,038 million, suggesting growing eliminations, intercompany transactions, or corporate-level adjustments. Interestingly, in 2024 there is a positive value of $1,957 million, marking a significant reversal from previous years.
- Consolidated Total Assets
- The consolidated total assets increase from $54,403 million in 2019 to a peak of $87,143 million in 2023, demonstrating overall corporate growth. In 2024, there is a slight decrease to $87,007 million, largely attributable to declines in specific segments such as FedEx Ground and FedEx Services, partially offset by continued growth in FedEx Express and FedEx Freight, as well as the positive shift in corporate eliminations.
Capital expenditures
FedEx Corp., capital expenditures by reportable segment
US$ in millions
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|---|
| FedEx Express | 3,291) | 3,055) | 3,637) | 3,503) | 3,560) | 3,550) |
| FedEx Ground | 1,018) | 1,995) | 2,139) | 1,446) | 1,083) | 808) |
| FedEx Freight | 461) | 556) | 319) | 320) | 539) | 544) |
| FedEx Services | 282) | 431) | 565) | 512) | 527) | 528) |
| Corporate, other and eliminations | 124) | 137) | 103) | 103) | 159) | 60) |
| Consolidated total | 5,176) | 6,174) | 6,763) | 5,884) | 5,868) | 5,490) |
Based on: 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), 10-K (reporting date: 2019-05-31).
The annual reportable segment capital expenditures exhibit varying trends across different segments over the analyzed period.
- FedEx Express
- Capital expenditures for this segment remained relatively stable from 2019 through 2022, fluctuating slightly around the 3500 million US dollars mark, with a peak of 3637 million in 2022. However, in 2023 there was a notable decline to 3055 million, followed by a modest recovery to 3291 million in 2024.
- FedEx Ground
- This segment showed significant growth in capital expenditures from 2019 to 2022, increasing from 808 million to a peak of 2139 million. However, there was a sharp decrease in 2023 to 1995 million, which further dropped considerably to 1018 million in 2024, indicating a substantial contraction in investment activity for this segment in the most recent years.
- FedEx Freight
- Expenditures in this segment displayed moderate volatility, with values holding steady around the mid 500 million range in 2019 and 2020, dropping sharply to around 320 million in 2021 and 2022, before recovering to 556 million in 2023 and then declining again to 461 million in 2024.
- FedEx Services
- This segment experienced a slow decline in capital expenditures over the period. It started at 528 million in 2019 and largely decreased to 282 million by 2024, with a minor peak in 2022 at 565 million.
- Corporate, other and eliminations
- Capital expenditures in this category demonstrated fluctuation, rising from 60 million in 2019 to a peak of 159 million in 2020, then declining and stabilizing around 100 to 137 million until 2023, before slightly decreasing again to 124 million in 2024.
- Consolidated total
- Total capital expenditures showed an upward trend from 5490 million in 2019, peaking at 6763 million in 2022. This was followed by a noticeable decline in 2023 to 6174 million and a further decrease to 5176 million in 2024, primarily influenced by reductions in the Ground and Express segments.