FedEx Financial Statements and Financial Ratios Analyzed

FedEx Financial Statements and FedEx Financial Ratios

A Beginner's Guide to FedEx Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

FedEx Financial Report by Paul Borosky, MBA. - 2019

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios (Starting in 2021).
  • Included Free Annual Reports Download for the company (5 years).

Hey All,

Thanks for visiting my FedEx Financial Report page. On this page, you will be able to find preliminary information about FedEx's current financial performance as well as some historical track records and trends. 

For a more detailed examination of FedEx's financial performance, I offer two reports, which are "A Beginner's Guide to FedEx Financial Analysis" and "FedEx Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "FedEx Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years (Starting in 2021).
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

FedEx 2019 Company Report by Paul Borosky, MBA
  • Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.
  • **See Terms and Conditions.

FedEx 2021 Beginner's Guide

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • FedEx’s Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 12
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 15
  • FedEx’s Summarized Balance Sheets 15
  • Cash 16
  • Short-Term Investments 16
  • Accounts Receivables 17
  • Inventory 18
  • Current Assets 19
  • Property, Plant, and Equipment (PP&E) 20
  • Total Assets 20
  • Accounts Payable 21
  • Accrued Expenses 22
  • Short-Term Debt 23
  • Total Current Liabilities 24
  • Long Term Debt (LT Debt) 25
  • Total Liabilities 26
  • Common Stock and Additional Paid-in Capital 27
  • Treasury 27
  • Retained Earnings 28
  • Total Equity 29
  • Financial Ratios 30
  • FedEx’s Liquidity Ratios 31
  • Current Ratio 31
  • Quick Ratio 32
  • Cash Ratio 33
  • FedEx’s Asset Ratios 35
  • Total Asset Turnover 36
  • Fixed Asset Turnover 37
  • Days Sales Outstanding 37
  • Inventory Turnover 38
  • Accounts Receivable Turnover 39
  • Accounts Payable Turnover 40
  • Other Asset Ratio Calculations 41
  • Working Capital Turnover 41
  • Average Days in Inventory 41
  • Average Days Payable 41
  • FedEx’s Profitability Ratios 43
  • Return on Assets (ROA) 43
  • Return on Equity (ROE) 44
  • Net Profit Margin 45
  • Gross Profit Margin 46
  • Operating Profit Margin 46
  • FedEx’s Debt Ratios 48
  • Debt Ratio 48
  • Debt to Equity Ratio 49
  • Times Interest Earned 50

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

FedEx: Brief Summary

FedEx (FDX) has its home headquarters in Memphis, Tennessee.  The organization competes in the integrated freight and logistics industry, specifically the industrial sector.  At present, there are proximally 500,000 employees working full-time for FedEx.

From a financial perspective, FedEx Corporation currently has a market cap of $41.2 billion.  Their stock price for the last 52 weeks has ranged from $88.69 to $178.50.  As for dividends, the organization does pay out quarterly dividends and a dividend yield of 1.64%.  His current beta is 1.33.  This indicates that the organization’s stock is slight to moderately riskier as compared to the overall market.

FedEx Financial Report Sources

“FedEx 2019 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., and owner of Quality Business Plan.  In this report, I used FedEx's 2018 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and 2019 10k annual report as the basis for information gathering. 

Section 1: FedEx Income Statement Analyzed

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of FedEx's important income statement line item trends from 2015 to 2019, in most cases.

FedEx: Revenue Growth.

In 2015, the FedEx Corporation ended the year with approximately $47.4 billion in revenues.  In the next four years, the company would continually grow its revenues until the end of 2019 with approximately $69.7 billion in revenues.  For mature multinational corporations such as FedEx, this continued growth rate over a five-year span is most impressive.  However, as we will see in the dividend payout section, the company may be preparing for slowed revenue growth due to dividend reductions.  Only time will tell though.

FedEx 2021 Summary Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                   83,959

                   69,217                    69,693                    65,450

                     60,319

COGS
Gross Profit

                   83,959

                   69,217                    69,693                    65,450

                     60,319

 
SG&A

                   30,173

                   25,031                    24,776                    23,795

                     21,989

Depreciation

                     3,793

                     3,615                      3,353

                     3,095

                       2,995

R & D                            -                            -                            -                            -                             -
Other                            -                            -                             -
Total Operating Expenses

                   78,102

                   66,800                    65,227                    61,178

                     55,753

EBIT

                     5,857

                     2,417                      4,466                      4,272

                       4,566

Other Income
Interest Expense

                        793

                        672                         588                         558

                          512

EBT

                     6,674

                     1,669                         655                      4,353

                       4,579

Taxes

                     1,443

                        383                         115                        (219)

                       1,582

Net Income

                    5,231

                    1,286                        540                     4,572

                     2,997

 

Section 2: FedEx Balance Sheet Analyzed

For the FedEx balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define their balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019.  Next, I then offer a summary analysis of their important balance sheet line items.

FedEx: Short-Term Investments.

The FedEx Corporation had no short-term investments in the last five years noted on its balance sheet.  Granted, the organization has continually increased its revenues over the last five years.  This indicates that the company is in an expansionary business cycle.  However, without short-term investments, the organization may not be holding and utilizing its liquid cash at an optimal level.  For a better perspective on this, an in-depth analysis of its cash position is needed.  As a general rule though, organizations should utilize short-term investments.  This is just my most humble of opinions.

FedEx 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                       7,087

                   4,881                    2,319                    3,265

                   3,969

Short Term Investment                              -                         -                         -                         -                         -
Account Receivable

                       7,087

                   4,881                    9,116                    8,481

                   7,599

Inventory

                          587

                      572                       553                       525

                      514

Other
Current Assets

                   20,580

               16,383                13,086                13,341

               12,628

Net PPE

                     35,752

                 33,608                  30,429                  28,154

                 25,981

Goodwill

                       6,992

                   6,372                    6,884                    6,973

                   7,154

Other
Total Assets

                   82,777

               73,537                54,403                52,330

               48,552

Accounts Payable

                       3,841

                   3,269                    3,030                    2,977

                   2,752

Accrued Expense

                       2,903

                   1,569                    3,278                    3,131

                   3,230

Accrued Taxes
Notes Payable
LT Debt - Current

                          146

                        51                       964                    1,342

                        22

Other
Total Current Liabilities

                     13,660

                 10,344                    9,013                    9,627

                   7,918

LT Debt

                     20,733

                 21,952                  16,617                  15,243

                 14,909

Other
Total Liabilities

                   58,609

               55,242                36,646                32,914

               32,479

Common Stock

                       3,513

                   3,388                    3,231                    3,117

                   3,005

Treasury

                       8,430

                   9,162                    9,289                    7,978

                   7,382

Retained Earnings

                     29,817

                 25,216                  24,648                  24,823

                 20,833

Other
Total Equity

                   24,168

               18,295                17,757                19,416

               16,073

Total Equity & Liability

                   82,777

               73,537                54,403                52,330

               48,552

 

Section 3: FedEx Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for FedEx from 2015 to 2019.  In reviewing each of their financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of their important Financial ratios. 

FedEx Current Ratio.

FedEx's current ratio for 2015 ended the year at 1.84.  This indicates that the organization had a significant amount of current assets on hand as compared to current liabilities.  With the golden rule at 1.0 for the current ratio, the firm needs to do a better job of better aligning its current asset needs with current liabilities.  The company may be able to do this by divesting some of its current assets to longer-term assets such as property, plants, and equipment, or even paying out additional dividends to shareholders.  Fortunately, the organization does reduce its current ratio in the next four years, ending 2019 at 1.45.  

FedEx Total Asset Turnover.

FedEx fixed asset turnover in 2015 was 2.27.  Their fixed asset turnover would fall in 2016 to 2.07.  However, they would rebound in 2017 and 2018 with a fixed asset turnover of 2.32.  However, their fixed asset turnover would slightly reduce in 2019 to 2.29.  It’s interesting that the organization is able to continually increase the revenues but they are not able to increase the efficient usage of their fixed assets.  

FedEx Return on Assets.

In 2015, the FedEx Corporation had a return on assets of 2.83%.  In the next four years, the return on assets would grow to 8.74%.  However, in 2019, the return on assets would drop through the floor to .99%.  This indicates that the management may have acquired too many assets as compared to revenues.  A common remedy for this ailment is for FedEx’s executive team to liquidate property, plant, and equipment that is underperforming.

FedEx Debt ratio.

In 2015, the FedEx Corporation had a debt ratio of 19.5%.  In the next two years, their debt ratio would balloon to 30.71% ending in 2017.  In the next two years, the organization would hold steady with a 30.5% debt ratio in 2019.  The significant increase in debt for FedEx is a common practice for multinational corporations.  By taking on debt, the organization is able to make money on borrowed funds as well as increase its dividend payout to shareholders.  

FedEx Liquidity Ratios 2019

Ratios 2019 2018 2017 2016 2015
Current Ratio                           1.45                    1.39
Cash Ratio                           0.26                    0.34
Quick Ratio                           1.39                    1.33
Net Working Capital                         5,680                  6,163

FedEx Asset Utilization 2019

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           1.28                    1.25
Fixed Asset Turnover                           2.29                    2.32
Days Sales Outstanding                         47.74                  47.30
Inventory Turnover                       126.03                124.67
Accounts Receivable Turnover                           7.65                    7.72
Working Capital Turnover                         12.27                  10.62
AP Turnover                         23.00                  21.99
Average Days Inventory                         51.90                  56.79
Average Days Payable                       284.38                322.05
Cash Conversion Cycle                     (184.73)              (217.96)

FedEx Profitability Ratios 2019

Ratios 2019 2018 2017 2016 2015
Return on Assets 0.99% 8.74%
Return on Equity 3.04% 23.55%
Net Profit Margin 0.77% 6.99%
Gross Profit Margin 94.42% 94.84%
Operating Profit Margin 6.41% 6.53%
Basic Earning Power 8.21% 8.16%
ROCE 9.84% 10.00%
Capital Employed                       45,390                42,703
ROIC 10.20% 13.07%

FedEx Long-term Debt 2019

Ratios 2019 2018 2017 2016 2015
Debt Ratio 30.54% 29.13%
Debt/Equity 93.58% 78.51%
Times Interest Earned                           7.60                    7.66