FedEx Corporation (FDX)
Current ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 18,207,000 | 18,610,000 | 20,365,000 | 20,580,000 | 16,383,000 |
| Total current liabilities | US$ in thousands | 13,355,000 | 13,586,000 | 14,274,000 | 13,660,000 | 10,344,000 |
| Current ratio | 1.36 | 1.37 | 1.43 | 1.51 | 1.58 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,207,000K ÷ $13,355,000K
= 1.36
The current ratio of FedEx Corporation has been gradually decreasing over the past five years, from 1.58 in 2020 to 1.36 in 2024. This trend indicates a potential weakening in the company's liquidity position and its ability to meet short-term obligations. While the current ratio is above 1, suggesting that FedEx has more current assets than current liabilities, the downward trajectory raises concerns about the efficiency of managing current assets and liabilities. It may be beneficial for FedEx to closely monitor and potentially optimize its working capital management to improve its liquidity position and ensure financial stability in the future.