FedEx Corporation (FDX)
Operating return on assets (Operating ROA)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,559,000 | 5,507,000 | 5,306,000 | 5,206,000 | 4,912,000 | 5,333,000 | 5,617,000 | 6,038,000 | 6,245,000 | 6,118,000 | 5,797,000 | 5,665,000 | 5,857,000 | 4,535,000 | 3,941,000 | 3,030,000 | 2,417,000 | 3,258,000 | 3,758,000 | 4,372,000 |
| Total assets | US$ in thousands | 87,007,000 | 86,114,000 | 88,051,000 | 87,576,000 | 87,143,000 | 85,775,000 | 85,591,000 | 85,826,000 | 85,994,000 | 84,108,000 | 84,247,000 | 82,048,000 | 82,777,000 | 82,793,000 | 81,156,000 | 77,648,000 | 73,537,000 | 70,014,000 | 69,954,000 | 68,452,000 |
| Operating ROA | 6.39% | 6.40% | 6.03% | 5.94% | 5.64% | 6.22% | 6.56% | 7.04% | 7.26% | 7.27% | 6.88% | 6.90% | 7.08% | 5.48% | 4.86% | 3.90% | 3.29% | 4.65% | 5.37% | 6.39% |
May 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,559,000K ÷ $87,007,000K
= 6.39%
Operating return on assets (ROA) measures a company's ability to generate profits from its operational assets. A higher operating ROA indicates that the company is more efficient in utilizing its assets to generate earnings.
Upon analyzing the operating ROA trend of FedEx Corporation over the past few quarters, we observe fluctuations in the ratio. The operating ROA ranged from as low as 3.29% in August 2019 to as high as 7.27% in May 2022.
In the latest available data as of May 31, 2024, FedEx Corporation's operating ROA stands at 6.39%, which is slightly higher compared to the prior quarter. This indicates that the company's operational efficiency in generating profits from its assets has improved marginally.
Overall, FedEx Corporation has maintained a relatively stable operating ROA performance over the analyzed periods, suggesting a consistent ability to generate returns from its operational assets. However, monitoring future trends in operating ROA will be essential to assess the company's ongoing operational efficiency and profitability.