FedEx Corporation (FDX)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.35 | 0.36 | 0.36 |
May 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $27,582,000K
= 0.00
The debt-to-equity ratio of FedEx Corporation has been consistently low over the past several quarters, standing at 0.00 for the majority of the time. This indicates that the company has little to no debt relative to its equity, suggesting a conservative approach to financing its operations.
However, there was a slight increase in the debt-to-equity ratio in the latter half of 2019, reaching 0.35 in August 2019 and further increasing to 0.36 by November 2019. While these ratios are still relatively low compared to industry averages, they do indicate a slight uptick in leverage during that period.
Overall, the trend of a low debt-to-equity ratio for FedEx Corporation underscores its financial stability and ability to fund its operations primarily through equity rather than debt. Investors and analysts may view this positively as it signifies a lower risk of financial distress and a stronger financial position for the company.