FedEx Corporation (FDX)
Interest coverage
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,581,000 | 6,057,000 | 5,585,000 | 7,467,000 | 2,341,000 |
| Interest expense | US$ in thousands | 745,000 | 694,000 | 689,000 | 793,000 | 672,000 |
| Interest coverage | 8.83 | 8.73 | 8.11 | 9.42 | 3.48 |
May 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,581,000K ÷ $745,000K
= 8.83
FedEx Corporation's interest coverage ratio has shown a generally stable trend over the past five years, ranging from 3.48 in 2020 to 9.42 in 2021, with values of 8.11, 8.73, and 8.83 in 2022, 2023, and 2024 respectively. This ratio indicates that FedEx has comfortably covered its interest expenses in each of these years. A higher interest coverage ratio is typically a positive indicator, suggesting the company's ability to meet its interest obligations with its earnings. Overall, FedEx's consistent interest coverage ratios reflect a good financial health in terms of its ability to manage its debt obligations.