FedEx Corporation (FDX)
Number of days of payables
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.25 | 10.41 | 10.42 | 9.19 | 9.97 | |
| Number of days of payables | days | 29.80 | 35.07 | 35.02 | 39.70 | 36.62 |
May 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.25
= 29.80
Based on the data provided, FedEx Corporation's number of days of payables has shown a decreasing trend over the past five years. In particular, the number of days of payables decreased from 39.70 days in 2021 to 29.80 days in 2024, indicating that the company has been more efficient in managing its accounts payables over this period.
A lower number of days of payables suggests that FedEx is taking fewer days to pay its suppliers, which could indicate stronger bargaining power or improved cash flow management. This could potentially result in better working capital management and liquidity for the company.
Overall, the decreasing trend in the number of days of payables for FedEx Corporation is a positive signal of improved efficiency in managing accounts payables, which could positively impact the company's financial performance and overall financial health.