FedEx Corporation (FDX)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 5,559,000 | 5,507,000 | 5,306,000 | 5,206,000 | 4,912,000 | 5,333,000 | 5,617,000 | 6,038,000 | 6,245,000 | 6,118,000 | 5,797,000 | 5,665,000 | 5,857,000 | 4,535,000 | 3,941,000 | 3,030,000 | 2,417,000 | 3,258,000 | 3,758,000 | 4,372,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0 | 6,552,000 | 6,703,000 | 6,535,000 |
| Total stockholders’ equity | US$ in thousands | 27,582,000 | 26,375,000 | 26,766,000 | 26,534,000 | 26,088,000 | 24,733,000 | 24,115,000 | 25,140,000 | 24,939,000 | 24,526,000 | 24,940,000 | 24,321,000 | 24,168,000 | 21,981,000 | 21,039,000 | 19,462,000 | 18,295,000 | 18,831,000 | 18,659,000 | 18,166,000 |
| Return on total capital | 20.15% | 20.88% | 19.82% | 19.62% | 18.83% | 21.56% | 23.29% | 24.02% | 25.04% | 24.94% | 23.24% | 23.29% | 24.23% | 20.63% | 18.73% | 15.57% | 13.21% | 12.84% | 14.82% | 17.70% |
May 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,559,000K ÷ ($—K + $27,582,000K)
= 20.15%
The return on total capital for FedEx Corporation has shown a fluctuating trend over the past 20 periods, ranging from a low of 12.84% to a high of 25.04%. The return on total capital indicates how efficiently the company is generating profits from its capital investments.
In general, FedEx has been able to maintain relatively high returns on total capital, with the average return over the period being around 20%. This suggests that the company is effectively utilizing its capital to generate profits for its shareholders.
It is worth noting that there have been fluctuations in the return on total capital over the period, which could be influenced by various factors such as changes in business operations, economic conditions, or strategic decisions made by the company.
Overall, the return on total capital for FedEx Corporation indicates a solid performance in terms of generating returns for its capital investments, albeit with some variability over time.