FedEx Corp. (FDX)

Short-term (Operating) Activity Analysis Quarterly Data

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

FedEx Corp., short-term (operating) activity ratios (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. of Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	FedEx Corp.'s inventory turnover deteriorated from Q1 2018 to Q2 2018 but then improved from Q2 2018 to Q3 2018 exceeding Q1 2018 level.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	FedEx Corp.'s receivables turnover deteriorated from Q1 2018 to Q2 2018 but then slightly improved from Q2 2018 to Q3 2018.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	FedEx Corp.'s payables turnover declined from Q1 2018 to Q2 2018 but then increased from Q2 2018 to Q3 2018 exceeding Q1 2018 level.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	FedEx Corp.'s working capital turnover improved from Q1 2018 to Q2 2018 and from Q2 2018 to Q3 2018.
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	FedEx Corp.'s average receivable collection period deteriorated from Q1 2018 to Q2 2018 but then slightly improved from Q2 2018 to Q3 2018.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	FedEx Corp.'s operating cycle deteriorated from Q1 2018 to Q2 2018 but then slightly improved from Q2 2018 to Q3 2018.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	FedEx Corp.'s cash conversion cycle deteriorated from Q1 2018 to Q2 2018 and from Q2 2018 to Q3 2018.

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Inventory Turnover

FedEx Corp., inventory turnover calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Cost of revenue
	Spare parts, supplies and fuel, less allowances
	Ratio
	Inventory turnover¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Inventory turnover = (Cost of revenue_{Q3 2018} + Cost of revenue_{Q2 2018} + Cost of revenue_{Q1 2018} + Cost of revenue_{Q4 2017}) ÷ Spare parts, supplies and fuel, less allowances
= ( + + + ) ÷ =

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	FedEx Corp.'s inventory turnover deteriorated from Q1 2018 to Q2 2018 but then improved from Q2 2018 to Q3 2018 exceeding Q1 2018 level.

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Receivables Turnover

FedEx Corp., receivables turnover calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Revenues
	Receivables, less allowances
	Ratio
	Receivables turnover¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Receivables turnover = (Revenues_{Q3 2018} + Revenues_{Q2 2018} + Revenues_{Q1 2018} + Revenues_{Q4 2017}) ÷ Receivables, less allowances
= ( + + + ) ÷ =

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	FedEx Corp.'s receivables turnover deteriorated from Q1 2018 to Q2 2018 but then slightly improved from Q2 2018 to Q3 2018.

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Payables Turnover

FedEx Corp., payables turnover calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Cost of revenue
	Accounts payable
	Ratio
	Payables turnover¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Payables turnover = (Cost of revenue_{Q3 2018} + Cost of revenue_{Q2 2018} + Cost of revenue_{Q1 2018} + Cost of revenue_{Q4 2017}) ÷ Accounts payable
= ( + + + ) ÷ =

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	FedEx Corp.'s payables turnover declined from Q1 2018 to Q2 2018 but then increased from Q2 2018 to Q3 2018 exceeding Q1 2018 level.

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Working Capital Turnover

FedEx Corp., working capital turnover calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data (USD $ in millions)
	Current assets
	Less: Current liabilities
	Working capital
	Revenues
	Ratio
	Working capital turnover¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Working capital turnover = (Revenues_{Q3 2018} + Revenues_{Q2 2018} + Revenues_{Q1 2018} + Revenues_{Q4 2017}) ÷ Working capital
= ( + + + ) ÷ =

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	FedEx Corp.'s working capital turnover improved from Q1 2018 to Q2 2018 and from Q2 2018 to Q3 2018.

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Average Inventory Processing Period

FedEx Corp., average inventory processing period calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data
	Inventory turnover
	Ratio (no. of days)
	Average inventory processing period¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

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Average Receivable Collection Period

FedEx Corp., average receivable collection period calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data
	Receivables turnover
	Ratio (no. of days)
	Average receivable collection period¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	FedEx Corp.'s average receivable collection period deteriorated from Q1 2018 to Q2 2018 but then slightly improved from Q2 2018 to Q3 2018.

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Operating Cycle

FedEx Corp., operating cycle calculation (quarterly data)

No. of days

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Ratio
	Operating cycle¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= + =

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	FedEx Corp.'s operating cycle deteriorated from Q1 2018 to Q2 2018 but then slightly improved from Q2 2018 to Q3 2018.

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Average Payables Payment Period

FedEx Corp., average payables payment period calculation (quarterly data)

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data
	Payables turnover
	Ratio (no. of days)
	Average payables payment period¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

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Cash Conversion Cycle

FedEx Corp., cash conversion cycle calculation (quarterly data)

No. of days

		Feb 28, 2018	Nov 30, 2017	Aug 31, 2017	May 31, 2017	Feb 28, 2017	Nov 30, 2016	Aug 31, 2016	May 31, 2016	Feb 29, 2016	Nov 30, 2015	Aug 31, 2015	May 31, 2015	Feb 28, 2015	Nov 30, 2014	Aug 31, 2014	May 31, 2014	Feb 28, 2014	Nov 30, 2013	Aug 31, 2013	May 31, 2013	Feb 28, 2013	Nov 30, 2012	Aug 31, 2012	May 31, 2012	Feb 29, 2012	Nov 30, 2011	Aug 31, 2011
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Ratio
	Cash conversion cycle¹

Source: Based on data from FedEx Corp. Quarterly and Annual Reports

Q3 2018 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =

Ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	FedEx Corp.'s cash conversion cycle deteriorated from Q1 2018 to Q2 2018 and from Q2 2018 to Q3 2018.

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