FedEx Corporation (FDX)
Pretax margin
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 5,441,000 | 5,246,000 | 5,248,000 | 5,469,000 | 5,836,000 | 5,936,000 | 5,775,000 | 5,632,000 | 5,363,000 | 3,919,000 | 4,272,000 | 4,593,000 | 4,896,000 | 6,825,000 | 6,499,000 | 6,525,000 | 6,674,000 | 3,742,000 | 3,113,000 | 2,279,000 |
| Revenue (ttm) | US$ in thousands | 87,926,000 | 87,815,000 | 87,393,000 | 87,591,000 | 87,693,000 | 87,514,000 | 87,945,000 | 88,594,000 | 90,155,000 | 92,619,000 | 94,091,000 | 94,751,000 | 93,512,000 | 91,683,000 | 89,552,000 | 86,641,000 | 83,959,000 | 78,752,000 | 74,729,000 | 71,490,000 |
| Pretax margin | 6.19% | 5.97% | 6.01% | 6.24% | 6.66% | 6.78% | 6.57% | 6.36% | 5.95% | 4.23% | 4.54% | 4.85% | 5.24% | 7.44% | 7.26% | 7.53% | 7.95% | 4.75% | 4.17% | 3.19% |
May 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,441,000K ÷ $87,926,000K
= 6.19%
The analysis of FedEx Corporation's pretax margin over the specified periods reveals notable fluctuations and trends. Starting from 3.19% as of August 31, 2020, the pretax margin exhibited a consistent upward trajectory reaching a peak of 7.95% on May 31, 2021. This period marks a significant improvement in profitability before experiencing a decline in subsequent quarters.
Following the peak, the margin declined gradually to approximately 7.26% on November 30, 2021, then stabilized around 7.44% in February 2022. A sharper reduction occurred afterwards, with the margin decreasing to 5.24% by May 2022 and further dipping to 4.85% on August 31, 2022, and 4.54% on November 30, 2022. This downward trend indicates reduced profitability margins during this period, potentially reflecting increased operating costs or competitive pressures.
From early 2023 onwards, the pretax margin showed signs of recovery, rising to 4.23% in February 2023, then improving to 5.95% in May 2023. The upward momentum continued into late 2023, with margins reaching 6.36% on August 31, 2023, and further to 6.57% by November 30, 2023. The trend persisted into early 2024, peaking at 6.78% in February, followed by a slight contraction to 6.66% in May, then decreasing marginally to 6.24% in August and 6.01% in November 2024.
The data indicate that FedEx's pretax margin has experienced periods of both expansion and contraction over the analyzed timeframe, with notable improvement after mid-2023. The recent margins suggest a stabilization around the 6% range, reflecting potentially balanced operating conditions amid broader industry challenges. Overall, the company’s pretax profitability has demonstrated resilience with periods of recovery after declines, aligning with strategic operational adjustments and market dynamics.