FedEx Corporation (FDX)
Fixed asset turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 87,926,000 | 87,815,000 | 87,393,000 | 87,591,000 | 87,693,000 | 87,514,000 | 87,945,000 | 88,594,000 | 90,155,000 | 92,619,000 | 94,091,000 | 94,751,000 | 93,512,000 | 91,683,000 | 89,552,000 | 86,641,000 | 83,959,000 | 78,752,000 | 74,729,000 | 71,490,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 58,775,000 | 58,501,000 | 40,698,000 | 39,849,000 | 39,721,000 | 38,806,000 | 54,704,000 | 37,376,000 | 37,153,000 | 51,895,000 | 51,135,000 | 49,954,000 | 34,610,000 | 48,758,000 |
| Fixed asset turnover | — | — | — | — | — | — | 1.50 | 1.51 | 2.22 | 2.32 | 2.37 | 2.44 | 1.71 | 2.45 | 2.41 | 1.67 | 1.64 | 1.58 | 2.16 | 1.47 |
May 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $87,926,000K ÷ $—K
= —
The fixed asset turnover ratio for FedEx Corporation exhibits notable fluctuations over the observed periods, reflecting changes in the efficiency of the company's utilization of its fixed assets to generate revenue.
Starting from August 31, 2020, the ratio stood at 1.47, indicating a moderate level of asset utilization. A significant increase is observed by November 30, 2020, where the ratio rose to 2.16, suggesting improved efficiency in generating revenue relative to the company's fixed asset base during this period. This upward trend continued through February 28, 2021, with the ratio reaching 1.58, and subsequent periods showed gradual increases, with ratios of 1.64 on May 31, 2021, and 1.67 on August 31, 2021.
The ratio experienced a notable jump on November 30, 2021, reaching 2.41, and further increased to 2.45 by February 28, 2022. These elevated levels indicate a period of heightened efficiency, potentially attributable to optimized asset utilization or strategic operational improvements.
However, a decline is evident in the periods following: the ratio decreased to 1.71 on May 31, 2022, and then sharply to 2.44 on August 31, 2022. Subsequently, a slight decrease to 2.37 on November 30, 2022, and further to 2.32 on February 28, 2023, is observed. The ratio dips again to 2.22 on May 31, 2023, before falling below the earlier levels to 1.51 on August 31, 2023, and slightly marginally further to 1.50 on November 30, 2023.
The most recent data points, as of February 29, 2024, and beyond, are unavailable, indicating that the data collection or reporting ceased after November 2023. The downward trend towards the end of the observed period suggests a decline in the company's relative efficiency in utilizing fixed assets to generate revenue. This could be due to various factors, including asset aging, strategic shifts, or changes in operational scale.
In summary, the fixed asset turnover ratio for FedEx initially demonstrated robust improvement, reaching peak levels around late 2021 and early 2022, followed by a noticeable decline in subsequent periods. The trend highlights fluctuations in asset utilization efficiency, with recent figures indicating a decrease compared to earlier peaks.