FedEx Corporation (FDX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 24.01% | 22.63% | 22.52% | 22.44% | 22.80% | 22.98% | 22.91% | 21.64% | 21.26% | 21.24% | 21.24% | 21.41% | 21.57% | 21.39% | 21.10% | 21.10% | 21.38% | 20.61% | 20.29% | 19.73% |
| Operating profit margin | 5.93% | 6.16% | 6.14% | 6.38% | 6.83% | 6.29% | 5.14% | 4.99% | 4.58% | 3.94% | 5.24% | 5.65% | 5.95% | 6.91% | 6.47% | 6.54% | 6.98% | 5.76% | 5.27% | 4.24% |
| 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% |
| Net profit margin | 4.65% | 4.46% | 4.45% | 4.62% | 4.94% | 5.02% | 4.87% | 4.71% | 4.41% | 3.23% | 3.54% | 3.79% | 4.09% | 5.60% | 5.49% | 5.88% | 6.23% | 3.85% | 3.28% | 2.50% |
The profitability ratios for FedEx Corporation over the analyzed period reveal insights into its operational efficiency and profitability trends.
Gross Profit Margin:
The gross profit margin exhibits a generally upward trajectory. Starting at approximately 19.73% in August 2020, it experienced a steady increase through subsequent periods, reaching a peak of around 24.01% in May 2025. Notable incremental improvements are observed from mid-2022 onward, suggesting enhanced cost management or pricing strategies, and overall strengthening of gross profitability margins over time.
Operating Profit Margin:
This ratio demonstrates more fluctuation relative to the gross margin. Initially at about 4.24% in August 2020, it increased significantly during the early part of 2021, peaking around 7.95% in May 2021. Subsequently, it mostly declined, hitting a low of approximately 3.94% in February 2023 before gradually recovering and stabilizing around 5.93% to 6.83% in late 2024 and early 2025. The trend indicates periods of operational efficiency gains, followed by some compression, possibly due to increased operating expenses or competitive pressures.
Pre-Tax Margin:
Pre-tax margins follow a similar pattern of fluctuation. Starting at 3.19% in August 2020, they saw improvements, peaking at roughly 7.95% in May 2021. They then declined notably through late 2022, reaching below 4.5%, before beginning a recovery path in 2023. The margins hover around 6% in the most recent periods, suggesting some stabilization in profitability before tax considerations.
Net Profit Margin:
The net profit margin also reflects variability over the period. Beginning at 2.50% in August 2020, it increased to approximately 6.23% in May 2021. After peaking, it declined to around 3.54% in November 2022, but has exhibited a modest upward trend since, reaching approximately 4.65% by May 2025. This indicates that after a period of compression, net profitability has been gradually improving, potentially driven by better cost controls and revenue enhancements.
Overall, FedEx's profitability ratios suggest a pattern of recovery and improvement following a period of margin compression. The steady increase in gross profit margins coupled with stabilized operating, pre-tax, and net margins in recent periods indicates an improving ability to convert revenue into profit, despite fluctuations caused by external and internal factors affecting operational efficiency and cost management.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.04% | 6.36% | 6.27% | 6.44% | 6.89% | 6.40% | 5.13% | 5.05% | 4.74% | 4.26% | 5.76% | 6.24% | 6.47% | 7.53% | 6.88% | 6.90% | 7.08% | 5.48% | 4.86% | 3.90% |
| Return on assets (ROA) | 3.17% | 4.61% | 4.55% | 4.67% | 4.98% | 5.10% | 4.87% | 4.77% | 4.56% | 3.49% | 3.89% | 4.18% | 4.45% | 6.11% | 5.84% | 6.21% | 6.32% | 3.66% | 3.02% | 2.30% |
| Return on total capital | 6.60% | 24.46% | 24.41% | 24.07% | 25.24% | 26.56% | 25.69% | 25.35% | 24.64% | 20.21% | 22.29% | 22.50% | 24.09% | 33.65% | 31.38% | 31.64% | 32.30% | 21.34% | 18.47% | 16.48% |
| Return on equity (ROE) | 4.30% | 14.67% | 14.69% | 14.89% | 15.70% | 16.66% | 16.02% | 15.73% | 15.23% | 12.10% | 13.82% | 14.28% | 15.34% | 20.94% | 19.71% | 20.96% | 21.64% | 13.78% | 11.65% | 9.18% |
The profitability ratios for FedEx Corporation over the analyzed period exhibit noteworthy fluctuations and trends reflective of operational and strategic dynamics.
Operating Return on Assets (Operating ROA) demonstrates variability, with notable increases during the period from August 2020 through May 2021, rising from 3.90% to 7.08%. This suggests improved operational efficiency and asset utilization in that timeframe. However, starting from August 2021, the ratio declines gradually, reaching a low of 4.26% in February 2023, before rebounding modestly to around 6.89% in May 2024. The recent upward trend from February 2024 onward indicates a partial recovery in operating profitability.
Return on Assets (ROA) follows a similar pattern, with an upward movement up to May 2021 (6.32%), then generally declining through the subsequent year and reaching a low of 3.49% in February 2023. From this point, it shows signs of stabilization and slight recovery, rising to approximately 5.10% in February 2024 before declining again to 3.17% in May 2025, signaling some erosion in overall asset efficiency in recent periods.
Return on Total Capital exhibits high variability, peaking at 32.30% in May 2021, indicating strong capital efficiency during that period. Following this peak, the ratio diminishes to roughly 20.21% in February 2023, with a moderate recovery thereafter, reaching around 26.56% in February 2024. The significant drop to 6.60% in May 2025 is notable, suggesting a substantial decline in overall capital profitability towards the latest reporting period.
Return on Equity (ROE) displays substantial fluctuations, with a peak of 21.64% in May 2021 implying strong shareholder returns at that time. Subsequently, it declines to approximately 12.10% in February 2023, before steadily increasing through 2023 and into early 2024, reaching around 16.66% in February 2024. The latest data indicates a decline to 4.30% in May 2025, which may reflect reduced net income relative to equity or increased equity base diluting returns.
Overall, the profitable performance of FedEx, as indicated by these ratios, has seen periods of strong performance interspersed with declines, particularly from mid-2021 onward. The recent trend suggests some operational and efficiency challenges, but the ratios still reflect periods of considerable profitability at certain points within this timeframe.