FedEx Corporation (FDX)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 18,424,000 | 17,214,000 | 17,721,000 | 18,094,000 | 18,207,000 | 17,424,000 | 19,117,000 | 18,887,000 | 18,577,000 | 17,944,000 | 18,217,000 | 19,606,000 | 20,365,000 | 19,466,000 | 20,747,000 | 19,546,000 | 20,580,000 | 21,710,000 | 21,265,000 | 18,903,000 |
| 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 |
| Current ratio | 1.19 | 1.24 | 1.23 | 1.28 | 1.36 | 1.31 | 1.34 | 1.37 | 1.37 | 1.32 | 1.30 | 1.42 | 1.43 | 1.39 | 1.49 | 1.51 | 1.51 | 1.60 | 1.76 | 1.69 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,424,000K ÷ $15,435,000K
= 1.19
The analysis of FedEx Corporation's current ratio over the specified period reveals a generally declining trend, with fluctuations observed at various intervals. The current ratio, which measures the company's ability to meet short-term obligations with its short-term assets, commenced at a relatively healthy 1.69 as of August 31, 2020. It experienced a gradual increase to a peak of 1.76 by November 30, 2020, indicating a strong liquidity position at that time.
Subsequently, the ratio demonstrated a downward trajectory, declining to approximately 1.51 by May 31, 2021, and maintaining similar levels through August 31, 2021. The decline continued more markedly after this period, reaching approximately 1.30 on November 30, 2022, and remaining below 1.40 in the following months, with notable fluctuations.
From August 31, 2023, onward, the ratio fluctuated narrowly within a range of approximately 1.19 to 1.37, indicating a stabilization albeit at lower levels relative to the initial period. The most recent data point from August 31, 2024, records a ratio of 1.28, while the latest update on November 30, 2024, shows it decreasing slightly to 1.23, and further to approximately 1.19 as of May 31, 2025.
In summary, the company's current ratio has experienced a declining trend over the analyzed period, suggesting a gradual reduction in short-term liquidity. While the ratio consistently remains above 1.0, indicating that short-term liabilities are generally covered by short-term assets, the decreasing trend could point to a potential tightening of liquidity resources, warranting close monitoring for potential liquidity challenges in the future.