FedEx Corporation (FDX)
Current ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.19 | 1.36 | 1.37 | 1.43 | 1.51 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,424,000K ÷ $15,435,000K
= 1.19
The current ratio of FedEx Corporation has demonstrated a consistent downward trend over the analyzed period from May 31, 2021, through May 31, 2025. Specifically, the current ratio was 1.51 in May 2021, indicating that the company's current assets substantially exceeded its current liabilities at that time. By May 2022, the ratio declined slightly to 1.43, and it continued to decrease subsequently, reaching 1.37 in May 2023 and 1.36 in May 2024. The ratio further declined to 1.19 in May 2025, approaching a value closer to 1.2, which suggests a narrowing margin of current assets relative to current liabilities.
This gradual decline in the current ratio over the four-year period suggests a reduction in the company's liquidity cushion, potentially indicating increased reliance on short-term liabilities or a decrease in the liquidity of current assets. While the ratio remains above 1.0 throughout the period, signaling that current assets have generally been sufficient to cover current liabilities, the narrowing margin warrants careful monitoring. A declining current ratio could reflect operational adjustments, changes in asset management, or broader industry and market conditions affecting liquidity.
Overall, the trend indicates a cautious liquidity position, with potential implications for the company's short-term financial stability if the downward trajectory continues.