FedEx Corporation (FDX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 86,948,000 | 86,820,000 | 87,251,000 | 87,900,000 | 89,461,000 | 91,930,000 | 93,402,000 | 94,062,000 | 92,823,000 | 90,497,000 | 88,366,000 | 85,455,000 | 82,773,000 | 78,752,000 | 74,723,000 | 71,484,000 | 69,211,000 | 69,660,000 | 69,189,000 | 69,689,000 |
| Receivables | US$ in thousands | 10,087,000 | 9,904,000 | 10,665,000 | 10,207,000 | 10,188,000 | 10,721,000 | 11,644,000 | 11,055,000 | 11,863,000 | 11,668,000 | 12,197,000 | 11,125,000 | 12,069,000 | 11,481,000 | 11,417,000 | 10,508,000 | 10,102,000 | 9,323,000 | 9,709,000 | 9,312,000 |
| 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 |
May 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $86,948,000K ÷ $10,087,000K
= 8.62
The receivables turnover for FedEx Corporation has shown fluctuation over the past few years, ranging from a low of 6.54 to a high of 8.78. The average receivables turnover ratio over this period stands at approximately 7.80. This indicates that, on average, FedEx collects its accounts receivable approximately 7.80 times over the course of a year.
A higher receivables turnover ratio is generally considered favorable as it suggests that the company is efficient in collecting outstanding receivables. However, a consistently increasing receivables turnover ratio could also indicate that the company might be too stringent in its credit policies, potentially losing out on sales opportunities.
Conversely, a declining receivables turnover ratio may be a cause for concern as it could imply that the company is facing difficulties in collecting its outstanding receivables, possibly due to issues with customer creditworthiness or industry economic conditions.
Overall, trend analysis of the receivables turnover ratio for FedEx Corporation suggests that the company has maintained a relatively stable position in managing its accounts receivable over the past few years, albeit with some fluctuations.