FedEx Corporation (FDX)
Gross profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 47,890,000 | 49,408,000 | 50,814,000 | 47,463,000 | 35,959,000 |
| Revenue | US$ in thousands | 86,948,000 | 89,461,000 | 92,823,000 | 82,773,000 | 68,545,000 |
| Gross profit margin | 55.08% | 55.23% | 54.74% | 57.34% | 52.46% |
May 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $47,890,000K ÷ $86,948,000K
= 55.08%
The gross profit margin of FedEx Corporation has shown relative stability over the past five years. The margin ranged from a low of 52.46% in May 2020 to a high of 57.34% in May 2021. In the most recent year, ending May 31, 2024, the gross profit margin stood at 55.08%. This indicates that for every dollar of revenue generated, FedEx retained 55.08 cents after accounting for the cost of goods sold.
Overall, the trend in the gross profit margin suggests that FedEx has been able to effectively manage its production and operational costs relative to its revenue, with minor fluctuations in the margin over the period analyzed. Maintaining a gross profit margin above 50% indicates the company's ability to generate profit from its core business activities. However, it will be essential for FedEx to continue monitoring and optimizing its cost structure to sustain or improve its profitability in the future.