FedEx Corporation (FDX)
Receivables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 86,948,000 | 89,461,000 | 92,823,000 | 82,773,000 | 68,545,000 |
| Receivables | US$ in thousands | 10,087,000 | 10,188,000 | 11,863,000 | 12,069,000 | 10,102,000 |
| Receivables turnover | 8.62 | 8.78 | 7.82 | 6.86 | 6.79 |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $86,948,000K ÷ $10,087,000K
= 8.62
FedEx Corporation's receivables turnover ratio has demonstrated a fluctuating trend over the past five years. The ratio measures how efficiently the company is collecting payments from its customers. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more frequently, which is generally a positive signal of effective credit management and liquidity.
In the most recent fiscal year ending on May 31, 2024, FedEx's receivables turnover ratio was 8.62, slightly lower than the previous year's ratio of 8.78. This slight decrease could suggest a slightly slower collection of accounts receivable compared to the prior year. However, it is worth noting that the ratio remains relatively high, indicating that FedEx continues to efficiently collect payments from its customers.
Looking back over the five-year period, there has been an overall increasing trend in the receivables turnover ratio, with fluctuations from year to year. Compared to the ratio of 6.79 in fiscal year 2020, the current ratio of 8.62 reflects an improvement in the efficiency of accounts receivable collection.
Overall, the analysis of FedEx Corporation's receivables turnover suggests that the company has generally been successful in managing its accounts receivable effectively and collecting payments from customers in a timely manner.