FedEx Corporation (FDX)
Financial leverage ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 87,007,000 | 87,143,000 | 85,994,000 | 82,777,000 | 73,537,000 |
| Total stockholders’ equity | US$ in thousands | 27,582,000 | 26,088,000 | 24,939,000 | 24,168,000 | 18,295,000 |
| Financial leverage ratio | 3.15 | 3.34 | 3.45 | 3.43 | 4.02 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $87,007,000K ÷ $27,582,000K
= 3.15
The financial leverage ratio of FedEx Corporation has shown a decreasing trend over the past five years, declining from 4.02 in 2020 to 3.15 in 2024. This suggests that the company has been relying less on debt to finance its operations and investments compared to previous years. A lower financial leverage ratio indicates a lower level of financial risk and dependency on debt financing. The decreasing trend may signify a strengthening of FedEx's financial position and improved capital structure. It is essential for investors and creditors to monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage its overall financial risk effectively.