FedEx Corporation (FDX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 87,663,000 | 87,007,000 | 87,110,000 | 85,994,000 | 82,777,000 |
| Operating ROA | 5.95% | 6.39% | 5.64% | 7.26% | 7.08% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $5,217,000K ÷ $87,663,000K
= 5.95%
The analysis of FedEx Corporation's operating return on assets (ROA) over the specified period reveals a fluctuating trend with noticeable variations in profitability efficiency. As of May 31, 2021, the operating ROA was recorded at 7.08%, indicating a relatively strong ability to generate operating income from its assets. This figure increased modestly to 7.26% by May 31, 2022, reflecting a slight improvement in operational efficiency.
However, a significant decline occurred by May 31, 2023, when the operating ROA decreased to 5.64%. This reduction suggests either a decline in operating income relative to assets or an increase in asset base without a proportionate increase in operating profitability. The decline could be attributable to sector-specific challenges, increased operating expenses, or strategic investments that temporarily impacted operational efficiency.
Subsequently, the operating ROA exhibited a partial recovery, rising to 6.39% by May 31, 2024, indicating some improvement in operational performance or asset utilization. Nonetheless, it did not return to the levels observed earlier in 2021 and 2022. By May 31, 2025, the operating ROA was recorded at 5.95%, slightly lower than the previous year but above the 2023 low, suggesting a stabilization but not a complete recovery to prior higher profitability levels.
Overall, the trend illustrates that FedEx’s operating profitability relative to its assets experienced a peak around mid-2022, followed by a notable decline, partial recovery, and subsequent stabilization. These movements may reflect macroeconomic factors, industry-specific dynamics, or internal strategic adjustments impacting operational efficiency and asset management during this period.