FedEx Corporation (FDX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 28,074,000 | 27,582,000 | 26,088,000 | 24,939,000 | 24,168,000 |
| ROE | 14.58% | 15.70% | 15.23% | 15.34% | 21.64% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,092,000K ÷ $28,074,000K
= 14.58%
The analysis of FedEx Corporation’s return on equity (ROE) over the period from May 31, 2021, to May 31, 2025, reveals notable fluctuations and trends. At the end of fiscal year 2021, the ROE was reported at 21.64%, indicating a relatively high level of profitability relative to shareholder equity. However, this figure declined significantly in the subsequent year, reaching 15.34% as of May 31, 2022. The decline persisted into the following year, with the ROE marginally decreasing to 15.23% by May 31, 2023.
In the most recent fiscal period ending May 31, 2024, the ROE exhibited a slight uptick to 15.70%, suggesting a modest improvement in the company's ability to generate profit relative to shareholders’ equity. Despite this, the ROE in May 2025 decreased again to 14.58%, reflecting a slight erosion in profitability margins.
Overall, the trends indicate that FedEx’s ROE has experienced a considerable decline from its peak in 2021, stabilizing at a lower level in subsequent years. The partial recovery in 2024 suggests some operational improvement or efficiency gains, but the overall movement suggests a challenging environment or increased competitive pressures impacting profitability. Continued monitoring of future ROE figures will be necessary to determine if this is indicative of a sustained change or a short-term fluctuation.