FedEx Corporation (FDX)
Payables 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 |
| Payables | US$ in thousands | 3,692,000 | 3,189,000 | 3,848,000 | 4,030,000 | 3,841,000 |
| Payables turnover | 17.52 | 21.56 | 18.45 | 18.20 | 17.18 |
May 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $64,667,000K ÷ $3,692,000K
= 17.52
The payables turnover ratio for FedEx Corporation has demonstrated a generally upward trend over the period from May 31, 2021, to May 31, 2024, with a subsequent decline observed in 2025. Specifically, the ratio increased from 17.18 in 2021 to 18.20 in 2022, indicating a slight improvement in the company's ability to efficiently manage its trade payables within that year. The ratio further increased to 18.45 in 2023, suggesting continued efficiency gains or possibly optimized payment terms. In 2024, the ratio experienced a notable rise to 21.56, reflecting a significant enhancement in accounts payable turnover, which may imply more prompt payments to suppliers or more favorable payment terms.
However, in 2025, the ratio decreased to 17.52, falling below the earlier levels observed in 2021 and 2022. This decline could suggest a slowdown in the company's payables management efficiency or changes in payment policies, such as extending payment periods or altered supplier contracts. Overall, the trend indicates periods of improved payables management culminating in a peak in 2024, followed by a slight reversion in 2025. This fluctuation warrants further analysis of underlying operational or strategic factors that may have influenced payable management practices during these years.