FedEx Corporation (FDX)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 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 | 1,669,000 | -566,000 | -55,000 | 550,000 |
| Revenue (ttm) | US$ in thousands | 86,948,000 | 86,820,000 | 87,251,000 | 87,900,000 | 89,461,000 | 91,930,000 | 93,402,000 | 94,062,000 | 92,823,000 | 90,497,000 | 88,366,000 | 85,455,000 | 82,773,000 | 78,752,000 | 74,723,000 | 71,484,000 | 69,211,000 | 69,660,000 | 69,189,000 | 69,689,000 |
| Pretax margin | 6.71% | 6.84% | 6.62% | 6.41% | 5.99% | 4.26% | 4.57% | 4.88% | 5.27% | 7.54% | 7.35% | 7.64% | 8.06% | 4.75% | 4.17% | 3.19% | 2.41% | -0.81% | -0.08% | 0.79% |
May 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,836,000K ÷ $86,948,000K
= 6.71%
FedEx Corporation's pretax margin has shown some variability over the past few years, ranging from negative figures to positive percentages. In the most recent period ending May 31, 2024, the pretax margin was 6.71%, indicating that the company generated a pre-tax profit of about 6.71 cents for every dollar of revenue.
The pretax margin has generally been increasing since the end of FY2021, with occasional fluctuations. This improvement suggests that FedEx has been effectively managing its operating expenses, cost of goods sold, and other financial factors that impact profitability.
Despite facing challenges such as the impact of the COVID-19 pandemic and changing market dynamics, FedEx has been able to maintain a relatively healthy pretax margin compared to earlier periods. It is essential for the company to continue monitoring and managing its costs effectively to sustain or further improve its profitability in the future.