FedEx Financial Statements and Financial Ratios Analyzed

FedEx Financial Statements and FedEx Financial Ratios

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 Beginner's Guide to Financial Analysis 2022 by Paul Borosky, MBA.

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FedEx 2022 Financial Report by Paul Borosky, MBA

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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 2022 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 2022 10k, 2017 10k annual report, 2016 10k annual report, 2018 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 essential.  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 significant income statement line item trends in most cases.

FedEx: Revenue Growth.

FedEx’s revenues were $65.4 billion in 2018.  In 2022, the organization’s revenues increased to $93.5 billion.  In the last five years, the average growth rate annually for the organization was 9.6%.  From my experience, this growth rate is above average for most multinational organizations.  This growth trend indicates the organization is taking steps to continually increase market share for the firm year-over-year.  From an investor’s perspective, this is a good trend.

Analyst Grade: A

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 vital line item from the balance sheet.  In reviewing each line item, I will define their balance sheets line items, such as cash, property, plant and equipment, and liabilities.  Next, I then offer a summary analysis of their important balance sheet line items.

FedEx: Cash

FedEx’s cash holding was $3.2 billion in 2018, or 5% of sales.  In 2022, the organization’s cash holdings would increase to $6.8 billion or 7.4% of sales.  This trend indicates that the company has more cash on hand as compared to sales year-over-year.  From an investor’s perspective, this is not a good trend.  A better trend would be for the organization to have a steady cash position as compared to the sales. 

Analyst Grade: B

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.  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 was 1.39 in 2018.  As of 2020, FedEx’s current ratio increased to 1.58.  However, in the last two years, the organization has taken steps to reduce its current ratio, which resulted in 1.4 in 2022.  If the trend continues, then the organization would be more in line with other multinational organizations, which drive to achieve a 1.0 current ratio.  However, if their previous performance is any indicator, then investors should not hold their breath for this achievement.  From an investor’s perspective, this is an ok trend.

Analyst Grade: B

FedEx Return on Assets.

FedEx’s return on assets (ROA) was 8.7% in 2018.  As of 2022, the return on assets was 4.4%.  The decrease in return on assets indicates that the organization is not utilizing total assets under management in an efficient manner year-over-year from a revenue generation perspective.  From an investor’s perspective, this is a below-average trend.

Analyst Grade: C