FedEx Corporation (FDX)
Operating profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,217,000 | 5,559,000 | 4,912,000 | 6,245,000 | 5,857,000 |
| Revenue | US$ in thousands | 87,926,000 | 87,693,000 | 90,155,000 | 93,512,000 | 83,959,000 |
| Operating profit margin | 5.93% | 6.34% | 5.45% | 6.68% | 6.98% |
May 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $5,217,000K ÷ $87,926,000K
= 5.93%
The analysis of FedEx Corporation's operating profit margin over the specified period reveals fluctuations that reflect changes in the company's operational efficiency and profitability. As of May 31, 2021, the operating profit margin stood at 6.98%, indicating a relatively healthy level of profitability from core operations. By May 31, 2022, this margin declined slightly to 6.68%, suggesting a modest reduction in operational profitability, potentially attributable to increased operating costs or competitive pressures.
The following year, May 31, 2023, witnessed a more notable decline to 5.45%, highlighting a further decrease in operational efficiency or margin compression. This downward trend may have been influenced by factors such as rising labor or fuel costs, supply chain disruptions, or strategic investments impacting short-term profitability.
However, in the subsequent period ending May 31, 2024, the operating profit margin experienced a recovery to 6.34%, approaching levels observed in prior years. This improvement indicates some operational stabilization or cost management efforts, contributing to enhanced profitability. Nevertheless, by May 31, 2025, the margin slightly declined again to 5.93%, suggesting that despite periods of recovery, overall profitability remained challenged relative to the earlier peak.
Overall, the data depicts a cyclical pattern with periods of decline and partial recovery, reflecting the inherent volatility in operational profitability possibly driven by macroeconomic factors, industry dynamics, and company-specific strategies. The trend underscores the importance of continuous cost control and operational efficiency initiatives to sustain and improve profit margins over time.