FedEx Corporation (FDX)

Cash ratio

May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020
Cash and cash equivalents US$ in thousands 6,501,000 6,856,000 6,897,000 7,087,000 4,881,000
Short-term investments US$ in thousands 24,168,000
Total current liabilities US$ in thousands 13,355,000 13,586,000 14,274,000 13,660,000 10,344,000
Cash ratio 0.49 0.50 0.48 2.29 0.47

May 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,501,000K + $—K) ÷ $13,355,000K
= 0.49

The cash ratio of FedEx Corporation has shown fluctuations over the past five years. In 2024, the cash ratio stands at 0.49, slightly lower compared to 2023 and 2022 where it was 0.50 and 0.48, respectively. Notably, there was a significant decrease in the cash ratio in 2021 when it dropped to 2.29 before reverting back to lower levels in subsequent years. The 2020 cash ratio was 0.47.

A cash ratio below 1 indicates that FedEx has less cash and cash equivalents on hand to cover its current liabilities. The variations in the cash ratio over the years may reflect changes in FedEx's liquidity position and its ability to meet short-term obligations using available cash resources. Further analysis in conjunction with other financial ratios and considerations of the company's operating environment would provide a more comprehensive understanding of FedEx's overall financial health.


See also:

FedEx Corporation Cash Ratio