FedEx Corporation (FDX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 39,058,000 | 29,442,000 | 29,699,000 | 29,891,000 | 30,648,000 | 42,927,000 | 43,095,000 | 43,055,000 | 42,009,000 | 38,829,000 | 38,159,000 | 36,726,000 | 35,310,000 | 26,204,000 | 24,601,000 | 23,668,000 | 25,593,000 | 25,614,000 | 27,995,000 | 30,643,000 |
| Inventory | US$ in thousands | 614,000 | 640,000 | 632,000 | 631,000 | 604,000 | 631,000 | 655,000 | 647,000 | 637,000 | 611,000 | 594,000 | 577,000 | 587,000 | 583,000 | 587,000 | 593,000 | 572,000 | 568,000 | 576,000 | 574,000 |
| Inventory turnover | 63.61 | 46.00 | 46.99 | 47.37 | 50.74 | 68.03 | 65.79 | 66.55 | 65.95 | 63.55 | 64.24 | 63.65 | 60.15 | 44.95 | 41.91 | 39.91 | 44.74 | 45.10 | 48.60 | 53.39 |
May 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $39,058,000K ÷ $614,000K
= 63.61
The inventory turnover ratio for FedEx Corporation has shown fluctuations over the past few quarters. The ratio indicates the number of times the company's inventory is sold and replaced over a certain period, reflecting how efficiently the company manages its inventory levels.
In the most recent quarter ending May 31, 2024, the inventory turnover ratio was 63.61, which signifies that FedEx sold and replaced its inventory approximately 63.61 times during that quarter. This represents a significant increase from the previous quarter's ratio of 46.00.
While the inventory turnover ratio has shown some variability, it has generally remained within a relatively high range over the analyzed periods, indicating that FedEx is efficiently managing its inventory levels. Higher inventory turnover ratios generally indicate that a company is effectively managing its inventory by quickly selling and replenishing stock.
It is important to note that a high inventory turnover ratio may also suggest that the company could be experiencing stockouts or facing challenges in meeting demand. Therefore, it is crucial for FedEx to strike a balance between maintaining an efficient inventory turnover ratio and ensuring that adequate inventory levels are maintained to meet customer demand effectively.