FedEx Corporation (FDX)
Payables turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 66,811,000 | 67,943,000 | 67,713,000 | 67,936,000 | 67,701,000 | 67,402,000 | 67,797,000 | 69,422,000 | 70,989,000 | 72,948,000 | 74,104,000 | 74,463,000 | 73,345,000 | 72,075,000 | 70,660,000 | 68,360,000 | 66,005,000 | 62,523,000 | 59,563,000 | 57,383,000 |
| Payables | US$ in thousands | 3,692,000 | 3,604,000 | 3,896,000 | 3,738,000 | 3,189,000 | 3,780,000 | 4,002,000 | 3,794,000 | 3,848,000 | 3,987,000 | 3,989,000 | 4,167,000 | 4,030,000 | 4,187,000 | 4,190,000 | 3,822,000 | 3,841,000 | 3,990,000 | 3,733,000 | 3,339,000 |
| Payables turnover | 18.10 | 18.85 | 17.38 | 18.17 | 21.23 | 17.83 | 16.94 | 18.30 | 18.45 | 18.30 | 18.58 | 17.87 | 18.20 | 17.21 | 16.86 | 17.89 | 17.18 | 15.67 | 15.96 | 17.19 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $66,811,000K ÷ $3,692,000K
= 18.10
The payables turnover ratio for FedEx Corporation over the specified periods demonstrates notable fluctuations with an overall upward trend from August 2020 to May 2025. Initially, the ratio was 17.19 times as of August 31, 2020, indicating that, on average, the company settled its trade payables approximately 17 times within the fiscal year. This ratio experienced a slight decline to 15.96 in November 2020 and further to 15.67 in February 2021, suggesting a temporary extension in the duration of accounts payable or a change in payment practices.
Subsequently, the ratio increased steadily, reaching a peak of 18.45 in May 2023, signifying a more efficient payables management or potentially faster payment cycles. A minor decline is observed afterward, with the ratio decreasing to 18.30 in August 2023 and 16.94 in November 2023. Nevertheless, the ratio rebounded to 17.83 in February 2024 and then surged notably to 21.23 in May 2024, indicating an increased frequency of paying suppliers or a reduction in the average payable period.
From May 2024 onwards, the ratio exhibits some variability but generally stabilizes around the low 18s, with values such as 18.17 in August 2024 and 17.38 in November 2024. The latest data points show a ratio of 18.85 in February 2025 and 18.10 in May 2025, suggesting that the company's payables turnover has maintained a relatively consistent level in the recent periods after a period of volatility.
Overall, the observed fluctuations in FedEx's payables turnover ratio reflect dynamic changes in the firm's payment practices or operational strategies over time. The increasing trend toward higher ratios indicates a tendency toward faster settlement of payables relative to sales, which may influence liquidity management and supplier relationships.