FedEx Corporation (FDX)
Working capital 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 |
| Total current assets | US$ in thousands | 18,424,000 | 18,207,000 | 18,577,000 | 20,365,000 | 20,580,000 |
| Total current liabilities | US$ in thousands | 15,435,000 | 13,355,000 | 13,553,000 | 14,274,000 | 13,660,000 |
| Working capital turnover | 29.42 | 18.07 | 17.94 | 15.35 | 12.13 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $87,926,000K ÷ ($18,424,000K – $15,435,000K)
= 29.42
The working capital turnover ratio of FedEx Corporation over the specified period demonstrates a consistent upward trend, indicating an improving efficiency in the company's utilization of its working capital to generate revenue.
Starting at a ratio of 12.13 on May 31, 2021, the ratio increased significantly to 15.35 by May 31, 2022, reflecting a notable enhancement in operational efficiency. This upward movement continued through May 31, 2023, reaching 17.94, further underscoring ongoing improvements in the company's ability to leverage its working capital effectively.
The trend persisted slightly into May 31, 2024, with the ratio marginally increasing to 18.07. This slow rate of growth suggests stability in the efficiency gains achieved over this period. However, a substantial increase is observed by May 31, 2025, with the ratio reaching 29.42. This sharp rise could imply a significant improvement in operational efficiency, potentially due to better receivables management, reduction in working capital levels, or increased revenue generation relative to working capital.
Overall, the steady and accelerated growth in FedEx's working capital turnover ratio indicates a positive trajectory in the company's ability to generate revenue from its working capital base, which can be viewed as a sign of enhanced operational effectiveness and resource management over the analyzed period.