FedEx Corp. (NYSE:FDX)

Inventory Turnover

Inventory turnover showed a generally increasing trend from 121.01 in 2020 to a peak of 149.26 in 2023, indicating improved efficiency in managing and selling inventory. A slight decline occurred in 2024, followed by a moderate rebound in 2025.

Receivables Turnover

Receivables turnover increased steadily from 6.85 in 2020 to 8.85 in 2023, suggesting enhanced effectiveness in collecting receivables. However, after 2023, a decrease to 7.73 in 2025 indicates a slight reduction in collection efficiency during the latter period.

Payables Turnover

Payables turnover rose from 21.17 in 2020 to a peak of 27.5 in 2024, then declined to 23.82 in 2025. The rise indicates faster payment to suppliers up to 2024, with some moderation in payment speed thereafter.

Working Capital Turnover

Working capital turnover exhibited a strong upward trajectory over the period, increasing from 11.46 in 2020 to 29.55 in 2025. This trend reflects growing efficiency in utilizing working capital to generate sales, with significant acceleration particularly between 2024 and 2025.

Average Inventory Processing Period

The average inventory processing period was consistently low, oscillating between 2 and 3 days across the years. This stability corresponds with the high and improving inventory turnover ratios, indicating rapid inventory movement.

Average Receivable Collection Period

This period shortened from 53 days in 2020 to a low of 41 days in 2023, demonstrating improved collection speed. Nonetheless, it increased again to 47 days by 2025, mirroring the decline in receivables turnover and indicating a slight slowdown in collecting outstanding payments.

Operating Cycle

The operating cycle compressed from 56 days in 2020 to 43 days in 2023, reflecting faster inventory turnover and receivable collections. An increase to 49 days by 2025 suggests a moderate extension of the overall process subsequently.

Average Payables Payment Period

This period decreased steadily from 17 days in 2020 to a low of 13 days in 2024, indicating quicker payments to suppliers. A small increase to 15 days in 2025 suggests a slight easing in payment speed later on.

Cash Conversion Cycle

The cash conversion cycle improved notably, shortening from 39 days in 2020 to a low of 27 days in 2023, signifying enhanced liquidity management. However, it lengthened again to 34 days in 2025, indicating some reduction in efficiency in converting resources into cash during the final years.

Revenue

The revenue exhibits an overall increasing trend from 2020 to 2022, rising from approximately $69.2 billion to $93.5 billion. However, starting in 2023, there is a noticeable decline followed by a period of relative stabilization. Revenue decreases to about $90.2 billion in 2023 and further drops slightly to $87.7 billion in 2024, before marginally increasing to $87.9 billion in 2025. This suggests a peak in revenue around 2022, with a subsequent plateauing or mild contraction in the following years.

Spare parts, supplies, and fuel, less allowances

The expenses related to spare parts, supplies, and fuel demonstrate modest fluctuations over the six-year period. Starting at $572 million in 2020, these costs increase slightly, peaking at $637 million in 2022, followed by a decline to $604 million in 2023. The figures then show moderate increases and decreases, ending at $602 million in 2025. The general stability in these costs relative to revenue changes may imply effective management of operational expenses in these categories.

Inventory Turnover Ratio

The inventory turnover ratio shows a consistent upward trend from 121.01 in 2020 to a peak of 149.26 in 2023, indicating improved efficiency in inventory management over the period. A slight decrease occurs in 2024, dropping to 142.82, followed by a rebound to 146.06 in 2025. The rising ratio over most years suggests better utilization and faster movement of inventory, which could contribute positively to working capital management.

The financial data reveals several noteworthy trends over the observed periods.

Revenue

The revenue exhibits a general upward trend from 2020 to 2022, increasing from $69,217 million in 2020 to $93,512 million in 2022. However, from 2023 onwards, there is a decline in revenue, dropping to $90,155 million in 2023 and further to $87,693 million in 2024, with a slight increase to $87,926 million in 2025. This indicates a peak in 2022, followed by a moderate contraction and stabilization.

Receivables, less allowances

Receivables show an increase from $10,102 million in 2020 to $12,069 million in 2021, followed by a decrease to $11,863 million in 2022 and a sharper decline to $10,188 million in 2023. In 2024, receivables slightly decreased to $10,087 million but rose again to $11,368 million in 2025. This fluctuation suggests variability in accounts receivable management or customer payment patterns during these years.

Receivables Turnover

The receivables turnover ratio, which measures how efficiently the company collects its receivables, shows a generally increasing trend from 6.85 in 2020 to 8.85 in 2023, indicating improved collection efficiency over this period. However, after peaking in 2023, the ratio declines to 8.69 in 2024 and further to 7.73 in 2025, signaling a reduction in collection efficiency in more recent periods.

Overall, the data suggests that while revenue grew steadily until 2022, recent years have shown some decline and stagnation. Receivables experienced fluctuations, and the company improved its receivables collection efficiency until 2023, but this improvement reversed slightly in the subsequent years. The trends point to potential challenges in maintaining revenue growth and sustaining collection efficiency post-2022.

Revenue Trend

The revenue demonstrates a growth trend from May 31, 2020, to May 31, 2022, increasing from 69,217 million US dollars to 93,512 million US dollars. This upward trend then reverses, with revenue declining over the next two years to 87,693 million in 2024. The revenue figure shows a slight improvement in the final year, reaching 87,926 million in 2025, but this remains below the peak achieved in 2022.

Accounts Payable

Accounts payable rose from 3,269 million in 2020 to a peak of 4,030 million in 2022, suggesting an increase in the company's obligations to suppliers. Subsequently, accounts payable declined to 3,189 million by 2024 before a slight rebound to 3,692 million in 2025. This fluctuation may reflect changes in the company's payment policies or working capital management.

Payables Turnover Ratio

The payables turnover ratio increased steadily from 21.17 in 2020 to a high of 27.5 in 2024, indicating that the company was accelerating payments to suppliers or reducing payables relative to cost of goods sold during this period. However, this ratio decreased to 23.82 in 2025, suggesting a moderate slowing in the payment rate or an increase in accounts payable.

Overall Insights

The data reflects a period of revenue expansion followed by contraction, which might signal market saturation or operational challenges post-2022. The rise and fall in accounts payable alongside the fluctuations of the payables turnover ratio indicate active management of supplier payments, possibly in response to shifting liquidity conditions or strategic financial decisions. The peak in payables turnover ratio in 2024 coupled with the lowest accounts payable value in that year suggests an emphasis on faster payment cycles before a slight reversal in the final year.

Working Capital

Working capital shows a declining trend over the period analyzed. Starting at 6,039 million USD in 2020, it increased slightly in 2021 to 6,920 million USD. However, from 2022 onward, it consistently decreased, reaching 2,975 million USD in 2025. This represents a total reduction of over 50% from the initial amount in 2020, indicating a tightening of short-term liquidity or a change in asset and liability management practices.

Revenue

Revenue generally increased from 69,217 million USD in 2020 to a peak of 93,512 million USD in 2022. Following this peak, revenue declined in 2023 and 2024 to 87,693 million USD, though it slightly increased again in 2025 to 87,926 million USD. This pattern suggests an initial growth phase, followed by stabilization and mild fluctuations in the later years.

Working Capital Turnover

The working capital turnover ratio rose significantly during the period, from 11.46 in 2020 to 29.55 in 2025. This indicates that each unit of working capital was associated with increasing amounts of revenue over time. The sharp increase in this ratio after 2023 coincides with the decline in working capital, reflecting more efficient or aggressive use of working capital to generate revenue.

Overall Analysis

While revenue exhibited growth until 2022 followed by a stabilization phase, the working capital experienced a steady decrease after 2021. The growing working capital turnover suggests improved efficiency in using working capital to generate revenues. However, the drastic reduction in working capital could also imply amplified risk if short-term obligations are not matched by corresponding liquid assets. The company appears to be managing its resources to sustain revenue levels despite a shrinking working capital base.

The data presents an overview of inventory management efficiency over a series of years, highlighted by the inventory turnover ratio and the average inventory processing period.

Inventory Turnover Ratio

The inventory turnover ratio shows a generally increasing trend from 121.01 in 2020 to 146.06 in 2025. This upward movement indicates an improvement in inventory management, with the company increasingly able to sell and replace its inventory more frequently over the observed periods. The ratio peaked at 149.26 in 2023 but slightly declined in 2024 before rising again by 2025, suggesting some variability but maintaining overall enhancement in turnover efficiency.

Average Inventory Processing Period

The average inventory processing period remained low throughout the years, fluctuating narrowly between 2 and 3 days. Specifically, it was stable at 3 days in 2020 and 2021, then decreased to 2 days during 2022 and 2023, briefly rose back to 3 days in 2024, and returned to 2 days in 2025. This pattern reflects a consistently short inventory holding period, supporting the high turnover ratios observed and indicating effective inventory handling and swift movement within the company.

Overall, the data suggests strong and improving inventory efficiency, with frequent inventory turnover and brief inventory processing durations, likely contributing positively to the company's operational performance.

Receivables Turnover

The receivables turnover ratio demonstrates an overall increasing trend from 6.85 in 2020 to a peak of 8.85 in 2023, indicating improved efficiency in collecting receivables over these years. However, a slight decline to 7.73 is observed by 2025, which may suggest a modest slowdown in collection efficiency during the most recent period.

Average Receivable Collection Period

The average collection period shows a downward trend from 53 days in 2020 to 41 days in 2023, which aligns with the increasing receivables turnover ratio, reflecting faster collection of outstanding receivables. From 2023 onwards, there is an increase, reaching 47 days by 2025, indicating a lengthening of the collection period that corresponds with the declining turnover ratio in the same timeframe.

Overall Insights

The data reveals an improvement in receivables management effectiveness over the first four years, with faster turnover and reduced collection duration. Nonetheless, the recent slight deterioration in both metrics in the last two years may warrant attention to maintain or enhance liquidity and working capital efficiency moving forward.

The financial data indicates trends in inventory processing, receivable collection, and overall operating cycle durations over a six-year period.

Average Inventory Processing Period

The average inventory processing period shows minor fluctuations, starting at 3 days in 2020 and declining to 2 days in 2022. It briefly increased back to 3 days in 2024 before decreasing again to 2 days in 2025. Overall, the trend suggests a generally efficient inventory turnover with slight variability but consistent maintenance of a short processing period.

Average Receivable Collection Period

The average receivable collection period demonstrates a declining trend from 53 days in 2020 to a low of 41 days in 2023, indicating improved efficiency in collecting receivables. However, this trend reversed moderately in the last two years, increasing to 42 days in 2024 and further to 47 days in 2025. Despite this uptick, the period remains shorter than the initial years, suggesting some challenges in receivables collection towards the end of the period analyzed.

Operating Cycle

The operating cycle follows a similar pattern to the receivable collection period, decreasing from 56 days in 2020 to 43 days in 2023, reflecting overall improved operational efficiency. It then increased to 45 days in 2024 and 49 days in 2025. This rise indicates a lengthening of the total time taken for inventory processing and receivables collection combined, possibly linked to the observed increase in the receivable period.

In summary, while the company has managed to maintain a relatively short and stable inventory processing duration, the efficiency gains in receivable collections and the overall operating cycle observed up to 2023 have somewhat reversed in the last two years. This could signal emerging challenges in cash flow management or credit control that may require attention.

Payables turnover

The payables turnover ratio exhibits an overall increasing trend from 21.17 in May 2020 to a peak of 27.5 in May 2024, before declining to 23.82 in May 2025. This pattern indicates an improvement in the rate at which the company settles its accounts payable over the years, reaching its highest efficiency in 2024 followed by a slight slowdown in 2025.

Average payables payment period

The average payables payment period shows a consistent reduction from 17 days in May 2020 and May 2021 to 13 days in May 2024. In May 2025, this trend slightly reverses with an increase to 15 days. This decrease over time correlates inversely with the increase in payables turnover, reflecting a shorter duration to pay suppliers, culminating in the most rapid payment period in 2024 before a minor extension in 2025.

Insight

The inverse relationship between the payables turnover and the payment period is evident, as a higher turnover ratio corresponds to a reduced number of days to settle payables. The data suggests that the company has generally improved its efficiency in managing payables over the analyzed period, with the peak performance seen in 2024. However, some moderation in this trend is notable in 2025, potentially indicating changes in payment terms, supplier negotiations, or cash flow management strategies.

Average Inventory Processing Period

The average inventory processing period remained relatively stable over the examined timeframe, fluctuating slightly between 2 and 3 days. It decreased from 3 days in 2020 to 2 days in 2022 and 2023, then rose back to 3 days in 2024 before declining again to 2 days in 2025, indicating consistent inventory turnover efficiency with minor short-term variations.

Average Receivable Collection Period

The average receivable collection period demonstrated a notable improvement from 53 days in 2020 to 41 days in 2023, signaling quicker collection of receivables. However, there was a slight reversal in this trend after 2023, with the period increasing to 42 days in 2024 and further to 47 days in 2025, suggesting a modest deterioration in receivables management efficiency during the last two years.

Average Payables Payment Period

The average payables payment period showed a gradual decrease from 17 days in 2020 and 2021 to a low of 13 days in 2024, implying faster payments to suppliers. In 2025, this period increased slightly to 15 days, indicating a minor extension in payment terms but still lower than the initial years observed.

Cash Conversion Cycle

The cash conversion cycle experienced a downward trend initially, decreasing from 39 days in 2020 to 27 days in 2023, suggesting improved overall liquidity management and quicker cash flow turnover. However, this trend reversed somewhat over the last two years, with increases to 32 days in 2024 and 34 days in 2025, indicating a lengthening cash conversion cycle and potential easing of working capital efficiency.