FedEx Corporation (FDX)
Operating profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,559,000 | 4,912,000 | 6,245,000 | 5,857,000 | 2,417,000 |
| Revenue | US$ in thousands | 86,948,000 | 89,461,000 | 92,823,000 | 82,773,000 | 68,545,000 |
| Operating profit margin | 6.39% | 5.49% | 6.73% | 7.08% | 3.53% |
May 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $5,559,000K ÷ $86,948,000K
= 6.39%
Operating profit margin is a key financial metric that indicates the efficiency of a company in generating profits from its core operations. For FedEx Corporation, the operating profit margin has fluctuated over the past five years.
In the most recent fiscal year ending May 31, 2024, FedEx reported an operating profit margin of 6.39%, showing an improvement compared to the previous year's margin of 5.49%. This increase suggests that FedEx was able to control its operating expenses more effectively or increase its revenue generation in FY 2024.
Looking back over the past five years, we observe that FedEx's operating profit margin was highest in FY 2021 at 7.08% and lowest in FY 2020 at 3.53%. The fluctuation in operating profit margin may indicate varying levels of operational efficiency, cost management, or revenue performance during these periods.
Overall, the trend in FedEx's operating profit margin demonstrates the company's ability to adapt to changing market conditions and manage its operational profitability. It is important for investors and stakeholders to monitor this metric as it provides insights into FedEx's operational effectiveness and financial performance.