FedEx Corporation (FDX)
Days of sales outstanding (DSO)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.62 | 8.77 | 8.18 | 8.61 | 8.78 | 8.57 | 8.02 | 8.51 | 7.82 | 7.76 | 7.24 | 7.68 | 6.86 | 6.86 | 6.54 | 6.80 | 6.85 | 7.47 | 7.13 | 7.48 | |
| DSO | days | 42.34 | 41.64 | 44.62 | 42.38 | 41.57 | 42.57 | 45.50 | 42.90 | 46.65 | 47.06 | 50.38 | 47.52 | 53.22 | 53.21 | 55.77 | 53.65 | 53.28 | 48.85 | 51.22 | 48.77 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.62
= 42.34
To analyze FedEx Corporation's Days Sales Outstanding (DSO) trend, we need to consider the historical data provided. DSO measures the average number of days it takes for a company to collect payment after making a sale.
From the data, we observe fluctuations in FedEx's DSO over the past few years. In the most recent period ending May 31, 2024, the DSO was at 42.34 days, showing a slight increase from the previous period. This indicates that the company took, on average, 42.34 days to collect payment for its sales during that period.
Looking at the trend over the past few quarters, we see some variability in DSO, with values ranging from around 41 days to 55 days. A lower DSO implies that FedEx is collecting payments more quickly, indicating efficient accounts receivable management. Conversely, a higher DSO suggests delays in collecting payments, which could impact cash flow and liquidity.
It is important to note that a high DSO could be a red flag, as it may signal potential issues with customer credit quality or collection processes. Conversely, a consistently low DSO may indicate aggressive collection practices, potentially affecting customer relationships.
To gain a deeper understanding of FedEx's DSO trend, it would be beneficial to compare the company's DSO to industry benchmarks and analyze any significant changes in DSO alongside other financial metrics and market conditions.
See also:
FedEx Corporation Average Receivable Collection Period (Quarterly Data)