FedEx Corporation (FDX)
Number of days of payables
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 17.52 | 21.56 | 18.45 | 18.20 | 17.18 | |
| Number of days of payables | days | 20.84 | 16.93 | 19.79 | 20.06 | 21.24 |
May 31, 2025 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 17.52
= 20.84
The data indicates a declining trend in FedEx Corporation’s number of days of payables over the period from May 31, 2021, to May 31, 2024, followed by a slight increase in 2025. Specifically, the number of days payable decreased from approximately 21.24 days in May 2021 to 16.93 days in May 2024, representing a reduction of about 4.31 days or roughly 20.3% over this three-year span. This downward trend suggests that the company has been paying its suppliers more quickly over time, potentially reflecting improved liquidity, better cash management, or a strategic shift to shorten payable cycles.
However, in the subsequent year, May 2025, the number of days of payables slightly increased to 20.84 days. This uptick could indicate a deliberate extension of payment terms, a change in supplier relationship dynamics, or a response to operational or cash flow considerations. Overall, the trend illustrates a period of tightening payable cycles followed by a modest relaxation in terms, which may have strategic implications for the company's working capital management and liquidity profile.