FedEx Corporation (FDX)
Inventory turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 64,667,000 | 68,741,000 | 70,989,000 | 73,345,000 | 66,005,000 |
| Inventory | US$ in thousands | 602,000 | 614,000 | 604,000 | 637,000 | 587,000 |
| Inventory turnover | 107.42 | 111.96 | 117.53 | 115.14 | 112.44 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $64,667,000K ÷ $602,000K
= 107.42
The inventory turnover ratio for FedEx Corporation over the observed period indicates fluctuations that suggest changes in inventory management efficiency. As of May 31, 2021, the inventory turnover was 112.44, which increased slightly to 115.14 by May 31, 2022. This upward movement continued into 2023, with the ratio reaching 117.53, denoting a marginal improvement in how quickly inventory is being converted into sales or replenished.
However, this positive trend reversed in the subsequent year. By May 31, 2024, the ratio had declined to 111.96, indicating a reduction in inventory turnover efficiency. Continued decrease is observed through May 31, 2025, when the ratio further declined to 107.42. The overall pattern reflects a peak in inventory turnover around 2023, followed by a gradual decline towards 2025.
This trajectory may suggest that FedEx experienced a period of optimized inventory management leading up to 2023, but subsequently faced challenges in maintaining that efficiency. The declining ratio could be indicative of accumulating inventory, slower inventory movement, or strategic shifts in supply chain practices. Overall, despite the slight fluctuations, the relatively high inventory turnover figures throughout the period imply that FedEx maintains a generally efficient approach to managing its inventory levels, though recent declines warrant attention for potential operational adjustments.