FedEx Corp. (NYSE:FDX)

Inventory Turnover

The inventory turnover ratio has generally increased from 120.56 in August 2020 to values fluctuating around mid-140s in the most recent periods. This suggests an improvement in how efficiently inventory is being managed and sold, with a peak near 150 around late 2021 and a slight decline to the 140s range thereafter.

Receivables Turnover

Receivables turnover exhibited a gradual upward trend from 6.8 in August 2020, reaching a peak around 8.85 in mid-2023, indicating faster collection of receivables. However, after mid-2023, the ratio declined slightly to values near 7.7 by mid-2025, implying a modest slowdown in receivables collection efficiency.

Payables Turnover

Payables turnover experienced variations, initially falling from 21.41 in August 2020 to below 20 by early 2021, then increasing to a peak of 27.5 in mid-2024. Subsequently, it decreased towards 20.98 by mid-2025. These fluctuations suggest changes in payables payment practices, with periods of extended payment terms followed by more prompt settlements.

Working Capital Turnover

Working capital turnover increased markedly from 9.27 in August 2020 to peak levels above 29 by mid-2025. This strong upward trend indicates improved efficiency in utilizing working capital to generate sales, despite some fluctuations in the interim periods.

Average Inventory Processing Period

The average inventory processing period remained consistently low, fluctuating between 2 and 3 days throughout the analyzed period. This stability demonstrates consistent management of inventory turnover speed.

Average Receivable Collection Period

The average receivable collection period decreased from 54 days in August 2020 to a low of 41 days in early 2023, indicating improved collection efficiency. However, the days began to increase again slightly to about 47 days by mid-2025, reflecting a mild deterioration in collection speed.

Operating Cycle

The operating cycle shortened from 57 days in August 2020 to around 44 days by early 2023, showing enhanced operational efficiency. This was followed by a slight increase to near 49 days in 2025, implying a modest lengthening in the time taken to convert inventory and receivables back into cash.

Average Payables Payment Period

The average payables payment period demonstrated minor fluctuations, generally maintaining between 15 and 18 days. A notable decrease to 13 days occurred in mid-2024, indicating quicker payments during that period, followed by a return to the previous range.

Cash Conversion Cycle

The cash conversion cycle improved, declining from 40 days in August 2020 to around 27 days by mid-2023, signaling more effective cash flow management. Nevertheless, the cycle lengthened again slightly to about 32-34 days by mid-2025, indicating a relaxation in the pace at which cash is recovered.

Revenue Trends

Revenue exhibited an overall upward trajectory from August 31, 2020, reaching a peak around May 31, 2022. Specifically, revenue grew from approximately $19.3 billion to about $24.4 billion during this period. Subsequently, a decline occurred, with revenues decreasing to around $21.7 billion by August 31, 2023. Thereafter, revenue stabilized and showed a modest recovery, fluctuating slightly but generally maintaining levels near $22 billion through to August 31, 2025.

Spare Parts, Supplies, and Fuel Expenses

This expense category remained relatively stable throughout the timeline, ranging mostly between $590 million and $650 million. Minor fluctuations are observed without any clear upward or downward trend. The costs peaked slightly in the period ending November 30, 2022, then experienced a slight decline and stabilized again around $600 million towards the latter dates.

Inventory Turnover Ratio

The inventory turnover ratio demonstrated an upward trend from August 31, 2020, starting at approximately 120.56 and peaking near 150.76 in late 2021 and early 2022. Following this peak, there was a modest decline, with values moving to approximately 136.74 by February 29, 2024. After this dip, the ratio stabilized and increased again, reaching about 146.67 by August 31, 2025. The fluctuations indicate periods of efficient inventory management with some variability over time.

Overall Insights

The company showed growth in revenue until mid-2022, followed by a correction and stabilization phase. Costs related to spare parts, supplies, and fuel remained fairly stable, suggesting controlled operational expenses in this area. The inventory turnover ratio reflects generally strong inventory management with some variability, aligning with the revenue trends and potential operational adjustments throughout the periods analyzed.

Revenue Trends

Revenue exhibited an overall gradual growth from August 2020 through May 2022, rising from approximately 19,321 million USD to a peak near 24,394 million USD. Following this peak, revenue showed a downward correction with fluctuations, stabilizing around the 22,000 million USD mark from early 2023 through mid-2025. The data suggests that while the company experienced strong revenue growth during the initial pandemic recovery phase, it encountered some softness or market stabilization in subsequent periods.

Receivables, Less Allowances

The receivables balance fluctuated moderately throughout the observed periods. Beginning at roughly 10,508 million USD in August 2020, it increased to a high around 12,197 million USD in November 2021 before generally declining to a range around 10,000 to 11,000 million USD from 2023 onwards. The pattern indicates active management of receivables levels despite periods of elevated revenue, reflecting potential efforts to optimize credit terms or collections.

Receivables Turnover Ratio

The receivables turnover ratio improved significantly from 6.8 in August 2020 to a peak exceeding 8.8 during mid-2023, indicating accelerated collection efficiency over this timeframe. Thereafter, the ratio showed some volatility but generally maintained levels above 7.5 into mid-2025. This sustained healthy turnover suggests effective receivables management supporting cash flow, despite some episodic challenges reflective of fluctuating revenue and receivables balances.

Summary

The company demonstrated a growth phase in revenue followed by relative stabilization, while maintaining disciplined receivables management as evidenced by stable receivables levels and an improving receivables turnover ratio. The interplay of these metrics suggests operational efficiency in managing working capital, with an emphasis on maintaining liquidity amidst varying market conditions. The capacity to sustain a high turnover ratio alongside fluctuating revenue points to effective credit and collection policies as key contributors to the company’s financial stability over the analyzed periods.

The financial data indicates that revenue generally exhibited an upward trend from August 2020 through November 2021, increasing from approximately $19.3 billion to $23.5 billion. After peaking in November 2021, revenue showed some fluctuation and a slight downward trend over the subsequent quarters, with values hovering around the low $22 billion range up to May 2024. The revenue figures stabilized thereafter, remaining roughly flat through August 2025, ending at approximately $22.2 billion.

Accounts payable displayed a varying pattern over the same period. Starting at around $3.3 billion in August 2020, accounts payable increased significantly to a peak near $4.2 billion in November 2021 and February 2022. Following this peak, there was a moderate decline and fluctuation around $3.7 to $4 billion, with values dropping notably in May 2024 to approximately $3.2 billion before rising again to about $4.2 billion by August 2025.

The payables turnover ratio, which measures how many times a company pays off its accounts payable during a period, showed some variation across the analyzed quarters. It started at 21.41 in August 2020 and declined slightly until February 2021. From then on, the ratio generally increased, reaching a high point of 27.5 in May 2024, indicating faster payment of accounts payable relative to purchases during that quarter. After this peak, the turnover ratio decreased somewhat and stabilized in the low 20s through August 2025, ending at around 20.98.

Overall, the data suggest that revenue growth was strongest between mid-2020 and late 2021 but experienced stabilization and minor declines subsequently. Accounts payable levels rose significantly during the period of revenue growth and then fluctuated without a clear trend. The payables turnover ratio increased to a peak in mid-2024, suggesting a temporary acceleration in settling payables, followed by a return to more typical turnover levels. These movements may reflect shifts in operational efficiency, payment policies, or supplier terms over time.

Revenue Trends

Increased markedly from August 2020 to November 2021, after which it stabilized and showed mild decline until mid-2024, then remained relatively flat.

Accounts Payable

Rose concurrently with revenue growth, peaking around early 2022, before fluctuating and moderately declining mid-period, then increased again towards the end of the data range.

Payables Turnover Ratio

Decreased early on, then generally trended upward, peaking significantly in May 2024, indicating quicker payment cycles during that quarter, followed by a decline to steady levels.

Working Capital

The working capital demonstrates a fluctuating downward trend over the observed periods. Starting at 7,708 million US dollars in August 2020, it rose to a peak of 9,150 million by November 2020. Following this, the figure generally declined with intermittent recoveries, reaching a low of 2,975 million in May 2025 before slightly rebounding to 3,820 million by August 2025. This pattern indicates episodic tightening of short-term liquidity resources throughout the years.

Revenue

Revenue showed an overall upward movement from August 2020 through May 2022, rising from 19,321 million to a peak of 24,394 million US dollars. However, after this peak, revenue gradually decreased, fluctuating around the 21,600 to 22,200 million range through August 2025. The trend suggests initial growth followed by a stabilization and mild contraction phase in recent periods.

Working Capital Turnover Ratio

The working capital turnover ratio exhibited a consistent upward trend over the timeline, starting at 9.27 in August 2020 and reaching a notably higher ratio of 29.55 by August 2025. This indicates improved efficiency in utilizing working capital to generate revenue over time. The ratio's substantial increase, especially from 2022 onwards, points to a progressively leaner asset base supporting revenue generation.

Overall Analysis

There is a clear inverse relationship between working capital levels and the working capital turnover ratio, reflecting an optimization in the company's use of short-term assets for revenue production. While revenue rose in the early periods and subsequently stabilized with minor declines, working capital was reduced significantly, leading to higher turnover ratios. This suggests a strategic focus on enhancing operational efficiency and capital utilization. However, the declining working capital might also imply increased risks related to liquidity and working capital management if sustained beyond optimal levels.

The analysis of the inventory turnover ratio and the average inventory processing period over the given quarterly periods reveals several important trends and insights regarding inventory management efficiency.

Inventory Turnover Ratio

The inventory turnover ratio exhibits a general upward trend from August 31, 2020, to November 30, 2021, increasing from approximately 120.56 to a peak near 150.76. This suggests an improvement in the efficiency with which inventory is being sold or used during this timeframe. Following the peak, the ratio slightly declines and fluctuates between approximately 136.74 and 149.26 over the subsequent quarters up to August 31, 2024. Notably, the ratio remains relatively high compared to the initial values, indicating sustained efficiency in inventory turnover. In the last two observed quarters, a modest increase is again seen, reaching approximately 146.67 by August 31, 2025.

Average Inventory Processing Period

The average inventory processing period remains remarkably stable, primarily maintaining values at 2 or 3 days throughout the analyzed periods. Early quarters mostly show a 3-day period with a temporary improvement to 2 days from August 31, 2021, until November 30, 2022. Thereafter, the processing period intermittently returns to 3 days but reverts again to 2 days in the final quarters. This stability at a low number of days indicates consistent efficiency in processing inventory, supporting the higher turnover ratios observed.

Overall Insights

The combination of a high and generally increasing inventory turnover ratio along with a consistently low inventory processing period demonstrates effective inventory management. The company appears to optimize inventory levels and processing speeds to maintain operational efficiency. Minor fluctuations in turnover ratio and processing period suggest responsiveness to market or operational conditions without significant deterioration in inventory management.

Receivables Turnover

The receivables turnover ratio demonstrates a general upward trend from August 2020 to May 2024, increasing from 6.8 to a peak of 8.85 in May 2023. This indicates improving efficiency in collecting receivables over this period. However, after this peak, the ratio shows some volatility and a gradual decline, falling to 7.69 by August 2025. This suggests a slight deterioration in collection efficiency towards the latter quarters.

Average Receivable Collection Period

The average collection period inversely correlates with the receivables turnover ratio. Starting at 54 days in August 2020, it decreases steadily to a low of 41 days in multiple quarters around February 2023 through May 2024, reflecting quicker collections. After that, the period extends modestly to 47 days by August 2025, indicating a lengthening in the time taken to collect receivables.

Overall Trends and Insights

Overall, the data suggest an improvement in receivable management over the initial years, with more efficient turnover and shorter collection periods. The peak in turnover and trough in collection days around early 2023 to mid-2024 imply optimal working capital management during that phase. The subsequent reversal in these trends signals a modest weakening in receivables performance, possibly due to changing credit policies or market conditions.

Average Inventory Processing Period

The average inventory processing period remained relatively stable over the analyzed timeframe, mostly fluctuating between 2 and 3 days. Initially at 3 days, it briefly decreased to 2 days during mid-2021 and early 2022, indicating a slight improvement in inventory turnover efficiency. However, it returned to 3 days in some subsequent periods, showing a consistent and limited variability in the inventory handling cycle.

Average Receivable Collection Period

The average receivable collection period exhibited a general downward trend from 54 days in August 2020 to a low around 41-42 days in late 2022 and early 2023. This decline suggests improved efficiency in collecting receivables. However, after this improvement, the collection period showed a slight increase, moving back towards the mid-40s range by mid-2024 and late 2025, indicating some variability and a potential loosening in receivable collections towards the latter stages of the period examined.

Operating Cycle

The operating cycle mirrored the trends of both inventory processing and receivable collection periods, starting at 57 days in August 2020 and steadily declining to a low of around 43-45 days by early to mid-2023. This suggests an overall improvement in the company's operational efficiency, shortening the time between inventory acquisition and cash collection. Towards the end of the period, the operating cycle slightly increased to approximately 46-49 days, reflecting a mild reversal of some earlier gains but still maintaining a more efficient cycle compared to the initial periods.

Summary

Over the course of the data, the company demonstrates generally improved efficiency in managing inventory and collecting receivables, which collectively contributed to a shorter operating cycle. The most significant improvements occurred between 2020 and 2023, with stabilization and slight reversal trends observed thereafter. These patterns suggest a strong operational focus on cash flow management with some recent challenges that may require further attention to maintain optimal efficiency.

Payables Turnover

The payables turnover ratio fluctuates within a moderate range over the analyzed periods. Starting from 21.41 in August 2020, the ratio experiences some variability, reaching a local peak of 27.5 in May 2024. This peak indicates a significantly faster rate of paying off accounts payable around that time. Afterward, the ratio drops and stabilizes closer to the low twenties, ending at 20.98 by August 2025. Overall, the trend suggests intermittent acceleration and deceleration in how rapidly payables are settled, with a notable spike followed by a normalization phase.

Average Payables Payment Period

The average payment period generally oscillates within a narrow band. Beginning at 17 days in August 2020, the period marginally fluctuates around 15 to 18 days through most of the timeline. A marked contraction occurs in May 2024, when the average payment period shortens to 13 days, coinciding with the peak in payables turnover. This shortening reflects a quicker payment cycle during that quarter. In subsequent periods, the payment period reverts to the 15–17 day range by August 2025. The data indicates a relatively consistent payment timeframe with occasional acceleration that corresponds to changes in the payables turnover.

Overall Insights

The inverse relationship between payables turnover and average payment period is evident, as periods with high turnover correspond to shorter payment periods. Despite some volatility, the management of payables appears to maintain a consistent cycle, with occasional strategic adjustments to accelerate payments. The spike in payables turnover in mid-2024, accompanied by a reduction in days payable outstanding, may reflect a temporary operational or financial adjustment. For the remaining periods, the payables management follows a stable pattern, indicating controlled working capital practices.

Average Inventory Processing Period

The average inventory processing period has remained relatively stable over the observed quarters, fluctuating mainly between 2 and 3 days. There was a slight decrease from 3 days in early 2020 to 2 days from late 2020 to late 2022, followed by occasional rebounds back to 3 days. The values hovered primarily around 2 to 3 days, indicating consistent inventory turnaround times with minimal variation.

Average Receivable Collection Period

This metric demonstrates a gradual overall decline from 54 days in August 2020 to the low 40s in 2023, indicating improved efficiency in collecting receivables during that period. However, from mid-2023 onward, the period shows intermittent fluctuations between 41 and 47 days, suggesting some instability or cyclical changes in collection times. The general trend over the full time frame is modest improvement followed by a phase of mild variability.

Average Payables Payment Period

The average payables payment period remained fairly consistent, mostly oscillating between 15 and 18 days throughout the timeline. An isolated drop to 13 days in mid-2024 is notable, indicating a temporary acceleration in payment to suppliers, but the period soon returned to its prior range. This steadiness suggests stable supplier payment practices with minor short-term deviations.

Cash Conversion Cycle

The cash conversion cycle reveals a downward trend from 40-41 days in mid-2020 to a low near 27 days by mid-2023, reflecting enhanced operational efficiency in managing working capital components. Subsequently, there has been a slight increase and fluctuations between 28 and 34 days through 2025, indicating some variability in the company's cash flow management. Despite these fluctuations, the cycle remains shorter than the initial measurement, signifying an overall improvement in cash conversion efficiency over the five-year period.

Summary

Overall, the company exhibits stable inventory processing and payables payment periods, with minor fluctuations. Receivables collection has improved but shows variability in recent quarters. The cash conversion cycle has generally decreased, reflecting improved working capital efficiency, though variability in the latest periods indicates areas for ongoing monitoring and potential optimization.