FedEx Corporation (FDX)
Return on assets (ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,092,000 | 4,331,000 | 3,972,000 | 3,826,000 | 5,231,000 |
| Total assets | US$ in thousands | 87,663,000 | 87,007,000 | 87,110,000 | 85,994,000 | 82,777,000 |
| ROA | 4.67% | 4.98% | 4.56% | 4.45% | 6.32% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $4,092,000K ÷ $87,663,000K
= 4.67%
The analysis of FedEx Corporation’s return on assets (ROA) over the period from May 31, 2021, through May 31, 2025, reveals a generally declining trend followed by a modest recovery.
As of May 31, 2021, the ROA stood at 6.32%, indicating a relatively efficient utilization of assets to generate earnings. This figure experienced a notable decrease in the subsequent year, falling to 4.45% as of May 31, 2022. The decline suggests a reduction in asset efficiency or profitability relative to the assets employed during this period.
In the following year, May 31, 2023, the ROA showed a slight improvement, reaching 4.56%, but it still remained well below the 2021 peak. The upward movement in 2023 could indicate improved operational performance or better asset management, although the rate remains subdued compared to earlier levels.
The upward trend persisted into May 31, 2024, with the ROA increasing to 4.98%. This suggests a positive momentum in profit generation relative to assets, potentially driven by operational efficiencies, strategic initiatives, or favorable market conditions.
However, by May 31, 2025, the ROA slightly declined again to 4.67%. Despite this minor decrease, the figure remains higher than the levels observed in 2022 and 2023, reflecting a degree of stability and resilience in FedEx’s asset utilization efficiency over this period.
Overall, the company’s ROA demonstrates a pattern of initial decline from the pandemic-affected 2021 level, followed by gradual recovery in the subsequent two years. The current level remains below the 2021 peak but shows signs of stabilization and modest improvement in recent periods. This trajectory suggests that while FedEx faced challenges impacting asset profitability post-2021, recent strategies or market conditions have helped restore some efficiency in asset utilization.