FedEx Corporation (FDX)
Debt-to-equity ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 0 |
| Total stockholders’ equity | US$ in thousands | 27,582,000 | 26,088,000 | 24,939,000 | 24,168,000 | 18,295,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $27,582,000K
= 0.00
Based on the data provided for FedEx Corporation's debt-to-equity ratio from May 31, 2020, to May 31, 2024, it appears that the company has consistently maintained a debt-to-equity ratio of 0.00. A debt-to-equity ratio of 0.00 typically indicates that the company has no debt or a very minimal amount of debt in relation to its equity. This suggests that FedEx has primarily been financing its operations and investments using equity rather than debt during this period.
A debt-to-equity ratio of 0.00 may reflect a strong financial position, indicating lower financial risk and potentially higher stability for the company. However, it's important to note that while a low debt-to-equity ratio can be positive, it may also indicate that the company is missing out on potential tax advantages associated with debt financing.
In conclusion, FedEx's consistent debt-to-equity ratio of 0.00 over the five-year period suggests a conservative approach to capital structure and financing decisions, emphasizing a strong equity base in the company's capital structure.