FedEx Corporation (FDX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 86,948,000 | 86,820,000 | 87,251,000 | 87,900,000 | 89,461,000 | 91,930,000 | 93,402,000 | 94,062,000 | 92,823,000 | 90,497,000 | 88,366,000 | 85,455,000 | 82,773,000 | 78,752,000 | 74,723,000 | 71,484,000 | 69,211,000 | 69,660,000 | 69,189,000 | 69,689,000 |
| Property, plant and equipment | US$ in thousands | 41,491,000 | 41,529,000 | 41,532,000 | 41,174,000 | 40,698,000 | 39,849,000 | 39,721,000 | 38,806,000 | 38,091,000 | 37,376,000 | 37,153,000 | 36,481,000 | 35,752,000 | 34,990,000 | 34,610,000 | 34,262,000 | 33,608,000 | 33,306,000 | 32,408,000 | 31,610,000 |
| Fixed asset turnover | 2.10 | 2.09 | 2.10 | 2.13 | 2.20 | 2.31 | 2.35 | 2.42 | 2.44 | 2.42 | 2.38 | 2.34 | 2.32 | 2.25 | 2.16 | 2.09 | 2.06 | 2.09 | 2.13 | 2.20 |
May 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $86,948,000K ÷ $41,491,000K
= 2.10
The fixed asset turnover ratio for FedEx Corporation has exhibited some fluctuations over the past several periods, ranging from 2.06 to 2.44. The ratio measures how efficiently the company is generating revenue from its fixed assets. A higher ratio indicates that FedEx is generating more revenue relative to its investment in fixed assets.
The trend in the fixed asset turnover ratio shows some variability, with some periods showing a slight decrease followed by an increase in subsequent periods. Overall, the ratio has generally been above 2.00, indicating that FedEx is effectively utilizing its fixed assets to generate revenue.
It is important for FedEx to monitor this ratio to ensure that the company is efficiently using its fixed assets to generate revenue. Any significant deviations from the historical trend may warrant further investigation to understand the underlying factors impacting the efficiency of the company's asset utilization.