FedEx Corporation (FDX)
Days of sales outstanding (DSO)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.73 | 8.69 | 8.85 | 7.88 | 6.96 | |
| DSO | days | 47.19 | 41.98 | 41.25 | 46.30 | 52.47 |
May 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.73
= 47.19
The analysis of FedEx Corporation's days of sales outstanding (DSO) over the specified period reveals noteworthy dynamics in its receivables management. As of May 31, 2021, the DSO stood at approximately 52.47 days, indicating the average number of days it took the company to collect receivables was relatively higher. By May 31, 2022, this metric decreased to approximately 46.30 days, reflecting an improvement in collection efficiency and possibly a shorter credit cycle.
The downward trend continued into May 31, 2023, where the DSO further declined to roughly 41.25 days, suggesting ongoing enhancements in receivables turnover and cash flow management. This reduction implies more efficient collection processes and potentially tighter credit policies, contributing to improved liquidity and operational efficiency. However, in the subsequent year, May 31, 2024, the DSO slightly increased to around 41.98 days, indicating a modest lengthening in collection period. Despite this slight rise, the DSO remained significantly lower than the 2021 levels, maintaining a generally favorable collection cycle over the period analyzed.
The trend experienced a further uptick by May 31, 2025, reaching approximately 47.19 days. This increase signals a reversal to a somewhat extended receivables period, which could be attributable to various factors such as changes in customer credit terms, strategic shifts in credit policy, or external economic influences impacting customer payment behaviors.
Overall, FedEx's DSO demonstrated substantial improvement from 2021 through 2023, with consistent reductions in collection periods. The subsequent slight increase indicates a potential normalization or adjustment in receivables collection practices. The overall trend suggests enhanced receivables management during the early years, with a minor elongation occurring toward the most recent period. Continuous monitoring and analysis of underlying operational and strategic factors will be essential to assess future receivables efficiency and liquidity position.