FedEx Corporation (FDX)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	63.61	46.00	46.99	47.37	50.74	68.03	65.79	66.55	65.95	63.55	64.24	63.65	60.15	44.95	41.91	39.91	44.74	45.10	48.60	53.39
Receivables turnover	8.62	8.77	8.18	8.61	8.78	8.57	8.02	8.51	7.82	7.76	7.24	7.68	6.86	6.86	6.54	6.80	6.85	7.47	7.13	7.48
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
Working capital turnover	17.92	21.09	17.92	17.32	17.81	21.07	22.36	16.10	15.24	16.53	12.88	12.88	11.96	9.67	8.17	9.27	11.46	31.44	26.10	22.61

The inventory turnover ratio for FedEx Corporation has shown a fluctuating trend over the past few quarters, ranging from 39.91 to 68.03. The company appears to have efficiently managed its inventory, with the highest turnover ratio recorded in February 2023. This indicates that FedEx has been able to sell and replace its inventory multiple times throughout the year.

The receivables turnover ratio has remained relatively stable around 7 to 9 times per year, showing consistent collection of receivables from customers. This suggests that FedEx has been efficient in converting its credit sales into cash.

In terms of payables turnover, the ratio has also exhibited fluctuations but generally stayed within the range of 6 to 12 times per year. This indicates that FedEx has been managing its trade payables effectively, with some variability in the speed of paying off its suppliers.

The working capital turnover ratio for FedEx has shown a varying trend, with values ranging from 8.17 to 31.44. This suggests that the company has been utilizing its working capital efficiently to generate revenue, with higher values indicating better utilization of resources to drive sales.

Overall, the activity ratios reflect FedEx Corporation's ability to manage its inventory, receivables, payables, and working capital effectively to support its operational activities.

Average number of days

		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
Days of inventory on hand (DOH)	days	5.74	7.93	7.77	7.71	7.19	5.37	5.55	5.48	5.53	5.74	5.68	5.73	6.07	8.12	8.71	9.15	8.16	8.09	7.51	6.84
Days of sales outstanding (DSO)	days	42.34	41.64	44.62	42.38	41.57	42.57	45.50	42.90	46.65	47.06	50.38	47.52	53.22	53.21	55.77	53.65	53.28	48.85	51.22	48.77
Number of days of payables	days	29.80	46.86	49.18	46.33	45.83	33.90	33.79	35.33	35.02	39.36	40.08	37.98	39.70	55.58	55.39	51.49	46.62	45.50	42.80	37.87

Analyzing FedEx Corporation's activity ratios over the specified periods reveals fluctuations in efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH):
- The company has maintained a relatively stable trend in managing its inventory efficiently.
- In recent periods, DOH has varied between 5.37 and 8.71 days, with a slight upward trend in certain periods such as Aug 31, 2020, and Nov 30, 2020, followed by a decrease.

2. Days of Sales Outstanding (DSO):
- The collection period for receivables has shown some variability, with DSO ranging from 41.57 to 55.77 days over the analyzed periods.
- There was a notable increase in DSO in Nov 30, 2022, and Nov 30, 2021, followed by a decrease in subsequent periods.

3. Number of Days of Payables:
- The payment period to suppliers demonstrated fluctuations, with days of payables ranging from 33.79 to 55.58 days in the periods observed.
- There was a significant increase in days of payables in May 31, 2021, and May 31, 2020, followed by a decrease in subsequent periods.

Overall, FedEx Corporation has exhibited varied performance in managing its working capital components, with fluctuations in inventory holding periods, receivables collection efficiency, and payment periods to suppliers. Monitoring and managing these activity ratios effectively are crucial for optimizing the company's liquidity and operational efficiency.

Long-term

	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
Fixed asset turnover	2.10	2.09	2.10	2.13	2.20	2.31	2.35	2.42	2.44	2.42	2.38	2.34	2.32	2.25	2.16	2.09	2.06	2.09	2.13	2.20
Total asset turnover	1.00	1.01	0.99	1.00	1.03	1.07	1.09	1.10	1.08	1.08	1.05	1.04	1.00	0.95	0.92	0.92	0.94	0.99	0.99	1.02

FedEx Corporation's long-term activity ratios, based on the fixed asset turnover and total asset turnover, show the efficiency of the company in generating revenue from its assets over time.

The fixed asset turnover has shown a fluctuating trend over the periods analyzed, ranging from 2.06 to 2.44. This ratio measures how efficiently the company is using its fixed assets to generate revenue. An upward trend in the fixed asset turnover indicates that FedEx is effectively utilizing its fixed assets to generate sales, with a peak of 2.44 in May 2022. However, there has been a slight decrease in the fixed asset turnover since then, potentially indicating a decrease in the productivity of the company's fixed assets in generating revenue.

In contrast, the total asset turnover has shown a relatively stable trend over the periods, fluctuating between 0.92 and 1.10. This ratio measures how efficiently the company is using all its assets to generate revenue. A total asset turnover of 1.00 means that FedEx generates $1 in revenue for every $1 in assets. The stability of this ratio suggests that FedEx has been able to consistently generate revenue in relation to its total assets over time.

Overall, while the fixed asset turnover fluctuates, the total asset turnover remains relatively stable, indicating that FedEx has been able to maintain efficiency in generating revenue from its assets. However, management should continue to monitor the trends in these ratios to ensure optimal asset utilization going forward.