FedEx Corporation (FDX)
Quick 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 | 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 | — |
| Receivables | US$ in thousands | — | 10,230,000 | 10,737,000 | 10,312,000 | 10,550,000 | 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 |
| 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 |
| Quick ratio | 0.36 | 1.11 | 1.10 | 1.16 | 1.30 | 1.17 | 1.22 | 1.25 | 1.28 | 1.19 | 1.16 | 1.30 | 1.31 | 1.27 | 1.37 | 1.39 | 3.17 | 3.12 | 3.37 | 1.56 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,502,000K
+ $—K
+ $—K)
÷ $15,435,000K
= 0.36
The quick ratio of FedEx Corporation has exhibited notable fluctuations over the analyzed period, reflecting variations in the company's liquidity position. Starting from August 31, 2020, the ratio stood at 1.56, indicating that the company's most liquid assets significantly exceeded its current liabilities. The ratio then rose sharply to reach a peak of 3.37 by November 30, 2020, suggesting a substantial improvement in liquidity, potentially driven by a reduction in liabilities or an increase in liquid assets.
Throughout 2021, the quick ratio remained relatively stable, fluctuating slightly around the 3.1 to 3.17 range, but experienced a decline to 1.39 by August 31, 2021. This decline indicates a reduction in the company's liquid assets relative to current liabilities, though the ratio remained above 1, which generally suggests that liquid assets were still sufficient to cover short-term obligations.
From late 2021 onwards, the ratio displayed a gradual decreasing trend. By November 30, 2021, it was around 1.37, and it continued to decline modestly to approximately 1.16 by November 30, 2022. The ratio maintained a value close to 1.2 during the initial months of 2023, with slight increases and decreases, reaching 1.28 as of May 31, 2023, before experiencing a marginal decline to 1.16 by August 31, 2024. This downward trend indicates a diminishing level of liquid assets relative to current liabilities over time, though the ratio remains above 1 in most periods, indicating ongoing liquidity sufficiency.
In the most recent data, the ratio shows a sharp drop to 0.36 as of May 31, 2025. This dramatic decrease indicates a significant reduction in liquid assets relative to current liabilities, suggesting potential liquidity concerns or changes in asset composition that substantially impact the company's ability to meet short-term obligations without relying on inventory or other less liquid assets.
Overall, the historical trajectory of FedEx's quick ratio suggests that while the company initially maintained robust liquidity levels, there has been a trend toward diminishing liquidity over the analyzed period. The recent low ratio highlights potential liquidity challenges, warranting further examination of the company's asset management, liability structure, and operational strategies moving forward.