FedEx Corporation (FDX)
Receivables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 87,926,000 | 87,693,000 | 90,155,000 | 93,512,000 | 83,959,000 |
| Receivables | US$ in thousands | 11,368,000 | 10,087,000 | 10,188,000 | 11,863,000 | 12,069,000 |
| Receivables turnover | 7.73 | 8.69 | 8.85 | 7.88 | 6.96 |
May 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $87,926,000K ÷ $11,368,000K
= 7.73
The receivables turnover ratio of FedEx Corporation demonstrates a pattern of gradual improvement over the period from May 31, 2021, to May 31, 2023. Specifically, the ratio increased from 6.96 in 2021 to 7.88 in 2022, indicating a more efficient collection of accounts receivable and potentially shorter credit cycles during this time. The upward trend continues into 2023, reaching 8.85, which suggests further enhancement in receivables management and faster collection of outstanding balances.
However, there is a slight decline observed in the subsequent year, with the ratio decreasing marginally from 8.85 in 2023 to 8.69 in 2024. Despite this decrease, the ratio remains relatively high relative to prior years, indicating that the company maintained a generally efficient collection process.
In 2025, the receivables turnover ratio declines further to 7.73. This decrease may imply a slight relaxation in collection efficiency or possibly an increase in credit sales or extended payment terms that affected the turnover rate. Nevertheless, it still remains above the levels recorded in 2021, reflecting overall better receivables management than two years prior.
Overall, the trend illustrates sustained improvements in receivables turnover from 2021 through 2023, with a modest decline afterward. Regardless, the ratios indicate that FedEx has maintained an efficient receivables collection process throughout this period, although recent data suggest a slight reduction in collection speed or changes in credit policies.