FedEx Corporation (FDX)
Quick ratio
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,501,000 | 5,644,000 | 6,729,000 | 7,055,000 | 6,856,000 | 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 | 4,881,000 | 1,766,000 | 2,031,000 | 2,389,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 24,168,000 | 21,981,000 | 21,039,000 | — | — | — | — | — |
| Receivables | US$ in thousands | 10,087,000 | 9,904,000 | 10,665,000 | 10,207,000 | 10,188,000 | 10,721,000 | 11,644,000 | 11,055,000 | 11,863,000 | 11,668,000 | 12,197,000 | 11,125,000 | 12,069,000 | 11,481,000 | 11,417,000 | 10,508,000 | 10,102,000 | 9,323,000 | 9,709,000 | 9,312,000 |
| Total current liabilities | US$ in thousands | 13,355,000 | 13,308,000 | 14,248,000 | 13,811,000 | 13,586,000 | 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 | 10,344,000 | 10,325,000 | 10,547,000 | 9,935,000 |
| Quick ratio | 1.24 | 1.17 | 1.22 | 1.25 | 1.25 | 1.19 | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 3.17 | 3.12 | 3.37 | 1.56 | 1.45 | 1.07 | 1.11 | 1.18 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,501,000K
+ $—K
+ $10,087,000K)
÷ $13,355,000K
= 1.24
The quick ratio of FedEx Corporation has shown fluctuations over the analyzed periods but generally has been above 1, indicating that the company has had an adequate level of liquid assets to cover its short-term obligations. A quick ratio above 1 implies that FedEx has sufficient liquid assets, such as cash and accounts receivable, to cover its current liabilities.
The quick ratio peaked at 3.37 in November 2020, which could suggest strong liquidity and the ability to meet immediate obligations comfortably. However, this high ratio may have been influenced by specific events or accounting adjustments during that period.
In contrast, the quick ratio dropped to 1.07 in August 2019, reflecting potentially lower liquidity at that time.
Overall, the recent quick ratio figures for FedEx Corporation have been relatively stable, hovering around 1.20 to 1.30 range. This suggests a consistent ability to meet short-term obligations efficiently. It is essential for the company to maintain a healthy quick ratio above 1 to ensure financial stability and operational flexibility.