Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | FedEx Corp. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Receivables turnover | An activity ratio equal to revenue divided by receivables. | FedEx Corp. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | FedEx Corp. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | FedEx Corp. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Short-term activity ratio | Description | The company |
---|---|---|
Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | FedEx Corp. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | FedEx Corp. operating cycle improved from 2021 to 2022 and from 2022 to 2023. |
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | FedEx Corp. cash conversion cycle improved from 2021 to 2022 and from 2022 to 2023. |
Inventory Turnover
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Revenue | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) | 65,450) | |
Spare parts, supplies, and fuel, less allowances | 604) | 637) | 587) | 572) | 553) | 525) | |
Short-term Activity Ratio | |||||||
Inventory turnover1 | 149.26 | 146.80 | 143.03 | 121.01 | 126.03 | 124.67 | |
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
Union Pacific Corp. | 32.46 | 33.57 | 35.11 | 30.62 | 28.91 | — | |
United Airlines Holdings Inc. | 34.41 | 40.54 | 25.06 | 16.48 | 40.35 | — | |
United Parcel Service Inc. | 97.28 | 112.87 | 135.69 | 136.50 | 145.00 | — | |
Inventory Turnover, Sector | |||||||
Transportation | 73.23 | 83.93 | 81.51 | 70.20 | 74.80 | — | |
Inventory Turnover, Industry | |||||||
Industrials | 4.23 | 4.28 | 4.03 | 3.71 | 4.25 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Inventory turnover = Revenue ÷ Spare parts, supplies, and fuel, less allowances
= 90,155 ÷ 604 = 149.26
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | FedEx Corp. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Revenue | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) | 65,450) | |
Receivables, less allowances | 10,188) | 11,863) | 12,069) | 10,102) | 9,116) | 8,481) | |
Short-term Activity Ratio | |||||||
Receivables turnover1 | 8.85 | 7.88 | 6.96 | 6.85 | 7.65 | 7.72 | |
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
Uber Technologies Inc. | 10.95 | 11.47 | 7.16 | 10.38 | 11.65 | — | |
Union Pacific Corp. | 11.63 | 13.15 | 12.66 | 12.98 | 13.61 | — | |
United Airlines Holdings Inc. | 28.30 | 24.96 | 14.81 | 11.86 | 31.71 | — | |
United Parcel Service Inc. | 8.11 | 7.97 | 7.76 | 7.87 | 7.76 | — | |
Receivables Turnover, Sector | |||||||
Transportation | 10.29 | 9.56 | 8.05 | 8.08 | 9.76 | — | |
Receivables Turnover, Industry | |||||||
Industrials | 8.61 | 8.17 | 7.76 | 7.57 | 8.09 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Receivables turnover = Revenue ÷ Receivables, less allowances
= 90,155 ÷ 10,188 = 8.85
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Receivables turnover | An activity ratio equal to revenue divided by receivables. | FedEx Corp. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Revenue | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) | 65,450) | |
Accounts payable | 3,848) | 4,030) | 3,841) | 3,269) | 3,030) | 2,977) | |
Short-term Activity Ratio | |||||||
Payables turnover1 | 23.43 | 23.20 | 21.86 | 21.17 | 23.00 | 21.99 | |
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
Uber Technologies Inc. | 28.43 | 27.00 | 10.87 | 21.93 | 26.50 | — | |
Union Pacific Corp. | 28.18 | 31.73 | 28.99 | 31.92 | 28.98 | — | |
United Airlines Holdings Inc. | 14.01 | 13.24 | 9.62 | 9.63 | 16.00 | — | |
United Parcel Service Inc. | 14.35 | 13.36 | 12.93 | 13.11 | 13.34 | — | |
Payables Turnover, Sector | |||||||
Transportation | 17.96 | 17.23 | 15.26 | 15.94 | 17.55 | — | |
Payables Turnover, Industry | |||||||
Industrials | 8.07 | 7.83 | 7.81 | 7.49 | 7.73 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Payables turnover = Revenue ÷ Accounts payable
= 90,155 ÷ 3,848 = 23.43
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | FedEx Corp. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current assets | 18,610) | 20,365) | 20,580) | 16,383) | 13,086) | 13,341) | |
Less: Current liabilities | 13,586) | 14,274) | 13,660) | 10,344) | 9,013) | 9,627) | |
Working capital | 5,024) | 6,091) | 6,920) | 6,039) | 4,073) | 3,714) | |
Revenue | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) | 65,450) | |
Short-term Activity Ratio | |||||||
Working capital turnover1 | 17.94 | 15.35 | 12.13 | 11.46 | 17.11 | 17.62 | |
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
Uber Technologies Inc. | 20.23 | 80.50 | — | 3.69 | 1.71 | — | |
Union Pacific Corp. | — | — | — | 476.41 | — | — | |
United Airlines Holdings Inc. | — | 681.14 | 6.98 | 7.40 | — | — | |
United Parcel Service Inc. | 52.36 | 24.61 | 13.21 | 26.45 | 43.84 | — | |
Working Capital Turnover, Sector | |||||||
Transportation | 75.38 | 32.61 | 15.90 | 13.91 | 34.76 | — | |
Working Capital Turnover, Industry | |||||||
Industrials | 13.27 | 10.34 | 6.90 | 4.52 | 12.12 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 90,155 ÷ 5,024 = 17.94
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | FedEx Corp. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Average Inventory Processing Period
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | 149.26 | 146.80 | 143.03 | 121.01 | 126.03 | 124.67 | |
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | 2 | 2 | 3 | 3 | 3 | 3 | |
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
Union Pacific Corp. | 11 | 11 | 10 | 12 | 13 | — | |
United Airlines Holdings Inc. | 11 | 9 | 15 | 22 | 9 | — | |
United Parcel Service Inc. | 4 | 3 | 3 | 3 | 3 | — | |
Average Inventory Processing Period, Sector | |||||||
Transportation | 5 | 4 | 4 | 5 | 5 | — | |
Average Inventory Processing Period, Industry | |||||||
Industrials | 86 | 85 | 91 | 99 | 86 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 149.26 = 2
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | 8.85 | 7.88 | 6.96 | 6.85 | 7.65 | 7.72 | |
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | 41 | 46 | 52 | 53 | 48 | 47 | |
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
Uber Technologies Inc. | 33 | 32 | 51 | 35 | 31 | — | |
Union Pacific Corp. | 31 | 28 | 29 | 28 | 27 | — | |
United Airlines Holdings Inc. | 13 | 15 | 25 | 31 | 12 | — | |
United Parcel Service Inc. | 45 | 46 | 47 | 46 | 47 | — | |
Average Receivable Collection Period, Sector | |||||||
Transportation | 35 | 38 | 45 | 45 | 37 | — | |
Average Receivable Collection Period, Industry | |||||||
Industrials | 42 | 45 | 47 | 48 | 45 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.85 = 41
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | FedEx Corp. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 2 | 2 | 3 | 3 | 3 | 3 | |
Average receivable collection period | 41 | 46 | 52 | 53 | 48 | 47 | |
Short-term Activity Ratio | |||||||
Operating cycle1 | 43 | 48 | 55 | 56 | 51 | 50 | |
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
Union Pacific Corp. | 42 | 39 | 39 | 40 | 40 | — | |
United Airlines Holdings Inc. | 24 | 24 | 40 | 53 | 21 | — | |
United Parcel Service Inc. | 49 | 49 | 50 | 49 | 50 | — | |
Operating Cycle, Sector | |||||||
Transportation | 40 | 42 | 49 | 50 | 42 | — | |
Operating Cycle, Industry | |||||||
Industrials | 128 | 130 | 138 | 147 | 131 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 41 = 43
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | FedEx Corp. operating cycle improved from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | 23.43 | 23.20 | 21.86 | 21.17 | 23.00 | 21.99 | |
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | 16 | 16 | 17 | 17 | 16 | 17 | |
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
Uber Technologies Inc. | 13 | 14 | 34 | 17 | 14 | — | |
Union Pacific Corp. | 13 | 12 | 13 | 11 | 13 | — | |
United Airlines Holdings Inc. | 26 | 28 | 38 | 38 | 23 | — | |
United Parcel Service Inc. | 25 | 27 | 28 | 28 | 27 | — | |
Average Payables Payment Period, Sector | |||||||
Transportation | 20 | 21 | 24 | 23 | 21 | — | |
Average Payables Payment Period, Industry | |||||||
Industrials | 45 | 47 | 47 | 49 | 47 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 23.43 = 16
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 2 | 2 | 3 | 3 | 3 | 3 | |
Average receivable collection period | 41 | 46 | 52 | 53 | 48 | 47 | |
Average payables payment period | 16 | 16 | 17 | 17 | 16 | 17 | |
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | 27 | 32 | 38 | 39 | 35 | 33 | |
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
Union Pacific Corp. | 29 | 27 | 26 | 29 | 27 | — | |
United Airlines Holdings Inc. | -2 | -4 | 2 | 15 | -2 | — | |
United Parcel Service Inc. | 24 | 22 | 22 | 21 | 23 | — | |
Cash Conversion Cycle, Sector | |||||||
Transportation | 20 | 21 | 25 | 27 | 21 | — | |
Cash Conversion Cycle, Industry | |||||||
Industrials | 83 | 83 | 91 | 98 | 84 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 41 – 16 = 27
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | FedEx Corp. cash conversion cycle improved from 2021 to 2022 and from 2022 to 2023. |