FedEx Corporation (FDX)
Financial leverage ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 129,102,000 | 85,043,000 | 85,481,000 | 86,711,000 | 87,007,000 | 86,114,000 | 88,051,000 | 87,576,000 | 87,110,000 | 85,775,000 | 85,591,000 | 85,826,000 | 85,994,000 | 84,108,000 | 84,247,000 | 82,048,000 | 82,777,000 | 82,793,000 | 81,156,000 | 77,648,000 |
| Total stockholders’ equity | US$ in thousands | 95,178,000 | 26,708,000 | 26,460,000 | 27,176,000 | 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 |
| Financial leverage ratio | 1.36 | 3.18 | 3.23 | 3.19 | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | 3.43 | 3.77 | 3.86 | 3.99 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $129,102,000K ÷ $95,178,000K
= 1.36
The financial leverage ratio of FedEx Corporation over the analyzed period demonstrates a generally declining trend. Starting at approximately 3.99 on August 31, 2020, the ratio declines gradually over the subsequent quarters, reaching a low of about 3.15 on May 31, 2024. Notably, the ratio experienced small fluctuations but maintained an overall downward trajectory, suggesting a reduction in leverage relative to assets or equity as time progressed.
The ratio remained relatively stable through 2020 and 2021, with minor variations, indicative of consistent leverage management during that period. There was a slight upward movement in late 2022 but remained within the range of approximately 3.4 to 3.5, reflecting a period of relative stability.
From May 2024 onward, a clear decreasing trend emerges, with a sharp drop to approximately 1.36 on May 31, 2025, representing a significant reduction in leverage ratio. This sharp decline may suggest a strategic deleveraging, possibly through debt repayment or equity issuance, resulting in a lower debt burden relative to assets or equity.
In summary, FedEx’s financial leverage ratio has demonstrated a consistent decline over the period, culminating in a substantial reduction by mid-2025. This trend indicates an effort toward decreasing financial leverage, potentially reflecting a focus on strengthening the company's financial stability or adapting to changing market or internal strategic considerations.