FedEx Corporation (FDX)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.08% | 55.23% | 54.74% | 57.34% | 52.46% |
| Operating profit margin | 6.39% | 5.49% | 6.73% | 7.08% | 3.53% |
| Pretax margin | 6.71% | 5.99% | 5.27% | 8.06% | 2.43% |
| Net profit margin | 4.98% | 4.44% | 4.12% | 6.32% | 1.88% |
FedEx Corporation's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has remained relatively stable, ranging between 52.46% and 57.34%, with the latest figure at 55.08%. This indicates that the company has been able to maintain a healthy level of profitability after accounting for the cost of goods sold.
The operating profit margin has shown some variability, with the highest figure of 7.08% in 2021 and the lowest at 3.53% in 2020. The latest operating profit margin stands at 6.39%, reflecting the proportion of revenue that translates into operating income after deducting operating expenses.
Similarly, the pretax margin has fluctuated over the years, with the highest figure of 8.06% in 2021 and the lowest at 2.43% in 2020. The latest pretax margin is at 6.71%, indicating the percentage of revenue that translates into pre-tax income before accounting for taxes.
The net profit margin, which represents the percentage of revenue that translates into net income after deducting all expenses, has also fluctuated. The highest figure of 6.32% was recorded in 2021, while the lowest at 1.88% was in 2020. The latest net profit margin stands at 4.98%.
Overall, while there have been fluctuations in profitability ratios over the past five years, FedEx Corporation has generally maintained positive margins, demonstrating its ability to generate profits relative to its revenue.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.39% | 5.64% | 7.26% | 7.08% | 3.29% |
| Return on assets (ROA) | 4.98% | 4.56% | 4.45% | 6.32% | 1.75% |
| Return on total capital | 23.86% | 23.22% | 22.39% | 30.90% | 12.80% |
| Return on equity (ROE) | 15.70% | 15.23% | 15.34% | 21.64% | 7.03% |
Based on the profitability ratios of FedEx Corporation over the past five years, we can observe the following trends:
1. Operating Return on Assets (Operating ROA): The operating ROA has shown a generally increasing trend from 3.29% in 2020 to 6.39% in 2024. This indicates that FedEx has been able to generate more operating income relative to its total assets over the years, reflecting improved operational efficiency.
2. Return on Assets (ROA): The ROA fluctuated over the years, with a peak of 6.32% in 2021 and a low of 1.75% in 2020. The 4.98% ROA in 2024 signifies that FedEx generated 4.98 cents of profit for every dollar of total assets, showing a moderate profitability level.
3. Return on Total Capital: The return on total capital has also shown variations, with an upward trend from 12.80% in 2020 to 23.86% in 2024. This indicates that FedEx has been effectively utilizing its total capital to generate returns for shareholders and debt holders.
4. Return on Equity (ROE): The ROE has fluctuated over the years, reaching a peak of 21.64% in 2021 and a low of 7.03% in 2020. The 15.70% ROE in 2024 indicates that FedEx generated 15.70 cents of profit for every dollar of shareholders' equity, reflecting the company's ability to generate returns for its equity investors.
Overall, while there have been fluctuations in the profitability ratios of FedEx Corporation, the company has shown overall improvements in operating efficiency and capital utilization over the past five years, leading to consistent returns for its stakeholders.