FedEx Corporation (FDX)
Payables 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 |
| Payables | US$ in thousands | 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 | 3,269,000 | 3,193,000 | 3,283,000 | 3,179,000 |
| Payables turnover | 12.25 | 7.79 | 7.42 | 7.88 | 7.96 | 10.77 | 10.80 | 10.33 | 10.42 | 9.27 | 9.11 | 9.61 | 9.19 | 6.57 | 6.59 | 7.09 | 7.83 | 8.02 | 8.53 | 9.64 |
May 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $39,058,000K ÷ $3,189,000K
= 12.25
The payables turnover ratio for FedEx Corporation has shown fluctuations over the past few years. The ratio has ranged from a low of 6.57 to a high of 12.25. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a positive sign of efficient management of accounts payable.
In the most recent period, the payables turnover ratio was 12.25, reflecting that FedEx was able to pay off its accounts payable 12.25 times during the year. This indicates a faster rate of paying suppliers compared to the previous periods.
Overall, the trend in the payables turnover ratio for FedEx Corporation has shown variability, but generally, the company has demonstrated a consistent ability to manage its accounts payable effectively. These fluctuations can be influenced by various factors such as changes in payment terms, purchasing practices, and overall economic conditions.