FedEx Corp. (NYSE:FDX)

Inventory Turnover

The inventory turnover ratio exhibited an overall increasing trend from 120.56 to peaks around 150 in late 2021, indicating improved efficiency in managing inventory during that period. From early 2022 onwards, the ratio fluctuated moderately but remained at relatively high levels between 140 and 149, suggesting stable inventory management efficiency with some minor volatility through mid-2024.

Receivables Turnover

This ratio demonstrated a generally upward trajectory, starting at 6.8 and rising to levels around 8.8 by early 2023, reflecting enhanced effectiveness in collecting receivables. Slight declines appeared after the peak, with values drifting down to approximately 7.4 by late 2025, indicating some easing in collection efficiency over the latter periods.

Payables Turnover

The payables turnover ratio showed moderate variability without a clear long-term directional trend. Values ranged broadly around 20 to 27, with a notable spike to 27.5 in mid-2024, suggesting variability in the speed of payments to suppliers. This variability could indicate changing vendor payment strategies or liquidity management approaches in different quarters.

Working Capital Turnover

The working capital turnover ratio demonstrated significant growth from 9.27 to a peak of around 29.55 in mid-2025, highlighting increasingly efficient use of working capital to generate sales. Although there was some decline after the peak to about 20.3 by late 2025, the overall trend indicates marked improvement in asset utilization over the full period.

Average Inventory Processing Period

The average inventory processing period remained largely stable, hovering between 2 and 3 days throughout. This consistency suggests steady inventory handling times with no significant changes in inventory turnover speed.

Average Receivable Collection Period

A general downward trend was observed in the average receivable collection period, from 54 days down to near 41 days by early 2023, indicating faster collection of outstanding invoices. Subsequently, it showed mild fluctuations, settling mostly between 41 and 49 days, which implies slightly increased receivable durations towards the end of the period under review.

Operating Cycle

The operating cycle decreased from 57 days to a low around 43-44 days in early 2023, indicating improved efficiency in converting inventory and receivables into cash. However, it mildly increased to the low 50s by late 2025, reflecting some elongation in the combined inventory and receivables processing periods during the latter part of the timeline.

Average Payables Payment Period

The average payables payment period mostly ranged between 15 and 18 days, with a brief decrease to 13 days in mid-2024, followed by a slight increase protracting to 19 days by late 2025. This indicates some flexible payment behavior towards suppliers, with a tendency toward longer payment periods in recent quarters.

Cash Conversion Cycle

There was a general reduction in the cash conversion cycle from 40-41 days to a low near 27-28 days by mid-2023, signifying improved overall liquidity efficiency. Post-mid-2023, the cycle lengthened modestly, fluctuating between 29 and 34 days, which suggests some easing in how quickly cash is recouped from operations in more recent periods.

Revenue Trends

Revenue demonstrates an overall growth trajectory from August 2020 to November 2025, rising from approximately $19.3 billion to around $23.5 billion. There is a pattern of periodic increases and mild declines, with some fluctuations appearing quarterly. Notably, revenue increases steadily through 2020 and the early part of 2021, peaking near $24.4 billion by late 2025. There are intermittent decreases in a few quarters such as in late 2022 and mid-2023, but these declines are relatively minor compared to the general upward trend.

Spare Parts, Supplies, and Fuel Costs

This cost component remains relatively stable over the examined period, fluctuating slightly around the $600 million mark. The values oscillate modestly between approximately $577 million and $655 million, with no significant upward or downward long-term trend. This suggests effective control or steady pricing in spare parts, supplies, and fuel expenditure despite revenue growth.

Inventory Turnover

The inventory turnover ratio exhibits a rising trend from 120.56 in August 2020 to a peak of around 150.76 in November 2021, indicating improved efficiency in inventory management during this period. After reaching this peak, the ratio experiences fluctuations but generally remains strong, oscillating between about 136 and 149 for the remaining timeline. This pattern suggests sustained operational effectiveness in managing inventory relative to sales, with some variability likely corresponding to seasonal or market conditions.

Overall Insights

The data indicates revenue growth accompanied by stable cost management in key operational expenses related to parts, supplies, and fuel. The increasing and consistently high inventory turnover ratio suggests efficient asset management and responsiveness to sales trends. The moderate fluctuations in revenue and inventory turnover imply responsiveness to external factors while maintaining overall growth and operational efficiency.

Revenue Trends

Revenue demonstrates a generally upward trajectory from August 2020 through November 2021, increasing from approximately $19.3 billion to $23.5 billion. Following this peak, fluctuations are observed with a decline into mid-2023, reaching nearly $21.7 billion. Thereafter, revenue maintains relative stability with minor variations, ending at around $23.5 billion by November 2025. This pattern suggests initial growth followed by a period of stabilization with moderate volatility.

Receivables, Less Allowances

The net receivables exhibit variability across the observed periods. Initially, values rose moderately from about $10.5 billion in August 2020 to roughly $12.2 billion in November 2021. Subsequently, there is a downward trend into mid-2023, where values decrease to about $10.2 billion. Following this, receivables exhibit cyclical fluctuations, ending at approximately $12.2 billion by November 2025. This pattern indicates intermittent changes possibly reflecting adjustments in customer payment behaviors or credit policies.

Receivables Turnover Ratio

The receivables turnover ratio reveals an improvement trend initially, rising from 6.8 in August 2020 to a peak near 8.85 by May 2023, indicating enhanced efficiency in collecting receivables. Post-peak, a slight decline is noted, with the ratio ending at approximately 7.41 by November 2025. Despite this decrease, turnover remains higher compared to the starting point, suggesting generally improved receivables management over the period under review.

Overall Analysis

The combination of fluctuating revenue and receivables values alongside the improving yet somewhat variable receivables turnover suggests a dynamic operating environment with efforts to optimize credit and collection processes. The initial revenue growth phase aligns with increasing receivables and improving turnover, while the subsequent stabilization and fluctuations may indicate market or operational challenges affecting cash conversion cycles. The sustained higher turnover ratio compared to the beginning of the period reflects relatively better control over receivables despite the volatility in revenue and receivables balances.

Revenue Trends

Revenue generally exhibited an upward trend from August 2020 through May 2022, increasing from 19,321 million US dollars to a peak of 24,394 million US dollars. Following this peak, revenue demonstrated a declining pattern, reducing to approximately 21,681 million US dollars by August 2023. After this decline, revenue remained relatively stable with minor fluctuations around the 21,500 to 22,400 million US dollars range through the subsequent periods, ending at 23,469 million US dollars in November 2025. This pattern suggests a strong growth phase initially, followed by a correction and stabilization in revenue levels.

Accounts Payable Dynamics

Accounts payable increased from 3,339 million US dollars in August 2020 to a high of 4,190 million US dollars in November 2021. After this peak, there was a moderate fluctuation with a notable dip to 3,189 million US dollars by May 2024, indicating a possible tightening of payables or improved payment efficiency during that period. However, accounts payable resumed an upward trajectory subsequently, reaching 4,664 million US dollars by November 2025. Overall, accounts payable showed a slightly increasing trend with intermittent volatility, reflecting changes in supplier payment behaviors or procurement activities.

Payables Turnover Analysis

The payables turnover ratio began at 21.41 in August 2020 and experienced variation throughout the periods. Initially, it decreased slightly to 19.74 by February 2021, then increased steadily to approximately 23.2 by May 2022. Following this, the ratio fluctuated, peaking at 27.5 in May 2024, which suggests a faster rate of accounts payable turnover, possibly indicating quicker payments to suppliers. After the peak, the ratio declined, settling around values near 19.32 by November 2025. These movements imply changes in the company's payment policies or cash management strategies affecting how quickly obligations to suppliers are settled.

Overall Financial Insights

The data indicates a phase of strong revenue growth followed by stabilization, while accounts payable and payables turnover exhibit cyclical changes. The increase and subsequent decline in payables turnover ratio could point to evolving working capital management approaches, balancing the trade-offs between supplier relationships and cash flow optimization. The upward trend in accounts payable toward the end of the period, combined with a decreasing turnover ratio, may suggest a lengthening of payment terms or increased inventory purchases. These financial behaviors are critical for understanding the company's operational efficiency and liquidity management over the analyzed periods.

Working Capital

The working capital exhibited a fluctuating downward trend over the analyzed periods. Starting from $7,708 million, it peaked at $9,150 million early on but generally trended lower thereafter. By the end of the series, the value declined to $4,439 million. Periodic increases were noted, such as around May 2023 and November 2025, yet these did not result in a sustained upward momentum.

Revenue

Revenue showed moderate growth with some volatility. Beginning at $19,321 million, revenue increased to a maximum of $24,394 million by mid-2022. Following that peak, revenue experienced a slight decline and periods of stagnation, fluctuating mostly in the range of $21,500 million to $22,500 million. Toward the latest periods, there was a slight uptick with revenue closing near $23,469 million.

Working Capital Turnover Ratio

The working capital turnover ratio consistently improved, indicating increasing efficiency in utilizing working capital to generate sales. Starting with a ratio of 9.27, the metric rose significantly over time, peaking above 29.55 in mid-2025. This strong upward trend suggests enhanced management of working capital in relation to revenue, despite the decline in absolute working capital values.

Summary and Insights

The financial data reflects a company managing working capital more efficiently over time as indicated by the increasing turnover ratio, despite a general decline in the working capital base. Meanwhile, revenue growth has been moderate and somewhat volatile, with peaks followed by mild contractions. The decline in working capital concurrent with rising turnover ratio suggests stronger operational efficiency or tighter asset management. However, the variability in revenue and occasional dips in working capital warrant close attention to cash flow management and operational stability in the near future.

The inventory turnover ratio exhibits an overall increasing trend from August 2020 through November 2021, rising from 120.56 to a peak around 150.76. This suggests improved efficiency in inventory management and faster sales relative to inventory levels during this period. After this peak, the turnover ratio shows some fluctuation with a slight downward tendency through 2023, dipping towards values near 136.74 by February 2024. Subsequently, the ratio generally stabilizes around the mid-140s with minor variations up to November 2025.

The inventory processing period, measured in days, remains predominantly stable throughout the observed quarters. It oscillates mostly between 2 and 3 days, indicative of consistent inventory handling times. Notably, the period is on the lower side (2 days) for multiple quarters during late 2021 and again in late 2025, suggesting marginal improvements in the speed of processing inventory. However, these changes are slight and not indicative of major shifts in operational practices.

Inventory Turnover Ratio

Shows a significant increase in the first year, reflecting enhanced operational efficiency, followed by a period of slight decline and stabilization.

Peaks around late 2021, then oscillates near the mid-140s range in subsequent years.

Average Inventory Processing Period

Remains consistently low, fluctuating between 2 and 3 days, demonstrating steady inventory processing efficiency.

Temporary improvements are observed in select quarters but do not indicate sustained trends.

Receivables Turnover

The receivables turnover ratio exhibits an overall upward trend from August 2020 through the majority of the observed periods, rising from 6.8 to a peak around 8.85 in May 2023. This indicates an improvement in the efficiency of collecting receivables over time. However, post-May 2023, there is a noticeable gradual decline in the ratio, falling to 7.41 by November 2025. Despite this decline, the turnover levels remain higher than those at the beginning of the period, suggesting that receivables management improved significantly over the longer term but faced some challenges or slower collection efficiency in the most recent periods.

Average Receivable Collection Period

The average receivable collection period inversely mirrors the turnover ratio trend. It starts relatively high at 54 days in August 2020 and declines steadily to a low point of around 41 days by May 2023, highlighting faster cash collection cycles. Notably, after May 2023, the collection period begins to increase again, reaching 49 days by November 2025. While this increase suggests a slight slowdown in collection efficiency, the period still remains lower than at the beginning of the dataset. This pattern aligns with the fluctuation observed in the receivables turnover ratio.

Trend Analysis and Insights

Over the full timeframe, the company demonstrated significant improvement in managing accounts receivable, as evidenced by increasing turnover ratios and decreasing collection periods. These improvements suggest better credit policies, enhanced collection efforts, or a combination of operational efficiencies. The reversal of this trend starting around mid-2023, with turnover decreasing and collection period increasing, could indicate factors such as changes in credit terms, market conditions, customer payment behavior, or internal process challenges. Nonetheless, the recent figures still represent better performance compared to the earliest periods within the data.

Average Inventory Processing Period

The average inventory processing period remained relatively stable over the observed timeframe, fluctuating between 2 and 3 days. Initially, it was consistently 3 days, then decreased to 2 days for several quarters before oscillating again between 2 and 3 days. This indicates an efficient and steady inventory turnover process with minor variations that do not suggest any significant operational shifts in inventory management.

Average Receivable Collection Period

The average receivable collection period exhibited a modest downward trend overall, beginning at 54 days and ending close to 49 days by the end of the period. Throughout the intervals, there are small fluctuations, with some quarters recording values as low as 41 days and others reaching up to 56 days. This pattern suggests a gradual improvement in the company's ability to collect receivables, potentially reflecting enhanced credit control or customer payment behavior over time.

Operating Cycle

The operating cycle followed a pattern similar to the receivable collection period, demonstrating a downward movement from approximately 57 days to just above 50 days. The cycle decreased during earlier periods, reaching a minimum of around 43 to 44 days, before slightly increasing again in later quarters. This indicates an overall improvement in combining inventory processing and receivable collection efficiency, although the latter part of the timeline shows some moderation in gains.

Overall Assessment

The data indicates consistent efficiency in inventory management alongside steady, though modest, progress in receivables collection. The improvements in these components contributed to a reduced operating cycle for most of the observed timeframe. Minor fluctuations in the final quarters suggest some variability, but the general trend points to effective operational management with a focus on optimizing working capital assets.

The analysis of the payables turnover ratio over the reported periods reveals a fluctuating yet generally stable trend with some notable variations. Initially, the ratio decreased from 21.41 to 19.74 between August 2020 and February 2021, indicating a slight slowdown in the rate at which payables were settled. Subsequently, the turnover ratio improved steadily, reaching a peak of 27.5 in May 2024, which suggests a more rapid payment of obligations during that quarter. However, following this peak, there is a decline with the ratio dropping back to 19.32 by November 2025, denoting a slower turnover pace in the more recent periods.

Correspondingly, the average payables payment period, expressed in number of days, exhibits an inverse relationship to the payables turnover ratio as expected. The payment period started at 17 days in August 2020 and exhibited minor fluctuations mostly between 15 and 18 days for the majority of the periods. An exception occurred in May 2024 when the payment period sharply decreased to 13 days, coinciding with the peak in turnover ratio, showing a faster payment cycle. After this point, the payment period gradually increased, reaching 19 days by November 2025, indicating a lengthening of the duration the company takes to settle its payables.

Payables Turnover Ratio Trends

• Initial decline in turnover from 21.41 to 19.74 (Aug 2020 to Feb 2021).

• Gradual increase with a peak at 27.5 (May 2024).

• Decline in turnover to 19.32 by the end of the observed period (Nov 2025).

Average Payables Payment Period Trends

• Mostly stable between 15 and 18 days across most quarters.

• Sharp decrease to 13 days at peak turnover (May 2024).

• Gradual increase towards the end, reaching 19 days (Nov 2025).

Insights

• The data displays typical fluctuations in payable management consistent with operational cycles or strategic payment timing adjustments.

• The significant reduction in payment days and corresponding increase in turnover rate around May 2024 suggests a deliberate acceleration in settling payables possibly to capitalize on vendor discounts or improve credit terms.

• The subsequent increase in payment days and reduction in turnover ratio toward the end of the timeline might indicate shifts in cash flow management or a strategic choice to hold payables longer.

Average Inventory Processing Period

The average inventory processing period remained relatively stable over the observed quarters, fluctuating primarily between 2 and 3 days. Initially, it was steady at 3 days, then decreased to 2 days in mid-2021 and maintained this lower level for several quarters before intermittently rising back to 3 days. This pattern suggests consistent inventory turnover efficiency with minor short-term variations.

Average Receivable Collection Period

This metric shows a general downward trend from 54 days to a low point around 41 days between early 2023 and mid-2023, indicating an improvement in receivables management and faster customer payments during that period. However, following this low, the collection period slightly increased again, fluctuating between 41 and 49 days toward the later periods. This suggests some challenges in maintaining the improved collection efficiency in the most recent quarters.

Average Payables Payment Period

The payables payment period remained fairly stable with minor fluctuations mostly around 15 to 18 days. A notable decrease to 13 days occurred around mid-2024, indicating a faster payment rate to suppliers during that time. Toward the end of the period, the metric increased to 19 days, which may reflect a strategic decision to extend payment terms or improved liquidity management.

Cash Conversion Cycle

The cash conversion cycle exhibits a gradual decline from 40-41 days at the start to a low of around 27-28 days in early 2023, reflecting enhanced overall working capital efficiency. Thereafter, it fluctuates between 28 and 34 days, suggesting some variability in the balance of receivables, payables, and inventory management. The relatively stable range in the latter periods indicates the company sustains a reasonably efficient conversion of resources into cash, with no significant deterioration in the cycle length.