FedEx Corporation (FDX)
Fixed asset turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 87,926,000 | 87,693,000 | 90,155,000 | 93,512,000 | 83,959,000 |
| Property, plant and equipment | US$ in thousands | — | — | 40,698,000 | 54,704,000 | 51,135,000 |
| Fixed asset turnover | — | — | 2.22 | 1.71 | 1.64 |
May 31, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $87,926,000K ÷ $—K
= —
The fixed asset turnover ratio of FedEx Corporation has exhibited a consistent upward trend over the period from May 31, 2021, through May 31, 2023. Specifically, the ratio increased from 1.64 in 2021 to 1.71 in 2022, representing a modest improvement in the efficiency with which the company's fixed assets generate sales. This upward movement continued into 2023, with the ratio reaching 2.22, indicating a significant enhancement in asset utilization.
The increase from 1.64 to 2.22 over this two-year span suggests that FedEx has improved its management of fixed assets, potentially through better operational efficiencies, asset disposals, or technological advancements that allow for higher sales output relative to fixed asset investment. The ratios for subsequent periods (May 31, 2024, and May 31, 2025) are not available and cannot be analyzed.
Overall, the trend indicates an improved asset productivity, which could reflect strategic asset optimization or operational improvements aimed at maximizing revenue generation from the fixed asset base.