FedEx Corporation (FDX)
Cash ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,502,000 | 5,135,000 | 5,029,000 | 5,943,000 | 6,501,000 | 5,644,000 | 6,729,000 | 7,055,000 | 6,823,000 | 5,373,000 | 4,646,000 | 6,850,000 | 6,897,000 | 6,065,000 | 6,833,000 | 6,853,000 | 7,087,000 | 8,856,000 | 8,339,000 | 6,954,000 |
| Short-term investments | US$ in thousands | — | 72,000 | — | 76,000 | 360,000 | — | — | — | 302,000 | — | — | — | — | — | — | — | 24,168,000 | 21,981,000 | 21,039,000 | — |
| Total current liabilities | US$ in thousands | 15,435,000 | 13,896,000 | 14,392,000 | 14,111,000 | 13,355,000 | 13,308,000 | 14,248,000 | 13,811,000 | 13,553,000 | 13,580,000 | 14,039,000 | 13,765,000 | 14,274,000 | 13,990,000 | 13,884,000 | 12,910,000 | 13,660,000 | 13,566,000 | 12,115,000 | 11,195,000 |
| Cash ratio | 0.36 | 0.37 | 0.35 | 0.43 | 0.51 | 0.42 | 0.47 | 0.51 | 0.53 | 0.40 | 0.33 | 0.50 | 0.48 | 0.43 | 0.49 | 0.53 | 2.29 | 2.27 | 2.42 | 0.62 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,502,000K
+ $—K)
÷ $15,435,000K
= 0.36
The cash ratio of FedEx Corporation over the analyzed period indicates fluctuations that suggest variable liquidity management amid changing market conditions. Initially, the cash ratio was 0.62 as of August 31, 2020, reflecting a moderate level of liquidity relative to current liabilities. This ratio sharply increased to 2.42 by November 30, 2020, signaling a significant surge in cash holdings relative to current liabilities, which could imply a conservative liquidity stance or preparations for potential adverse conditions during the early stages of the COVID-19 pandemic.
Following this peak, the ratio remained relatively stable but declined slightly to 2.27 at the end of February 2021, and then hovered around similar levels until May 31, 2021. After this period, a notable decrease occurred, with the ratio diminishing to 0.53 by August 31, 2021. This reduction indicates a substantial shift towards deploying cash, possibly for operational needs, investments, or debt reduction.
Subsequently, the cash ratio continued to decline gradually, reaching a low of 0.33 on November 30, 2022, reflecting a leaner cash position relative to current liabilities. The ratio then experienced minor fluctuations, rising modestly to approximately 0.53 by May 31, 2023, and stabilizing around 0.51 by August 31, 2023. The trend continued downward with a ratio of 0.35 observed on November 30, 2024, before slight increases to 0.37 and 0.36 in the following periods.
Overall, the data shows that FedEx's cash ratio has experienced significant volatility over the specified timeframe. The initial high levels suggest periods of cautious liquidity management or strategic cash accumulation, while subsequent declines indicate shifts toward utilizing cash reserves more actively. Such fluctuations may reflect the company's responses to operational demands, capital allocation strategies, or broader macroeconomic influences.