FedEx Corp., balance sheet: debt

US$ in millions

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Current portion of long-term debt	68)	126)	82)	146)	51)	964)
Long-term debt, less current portion	20,135)	20,453)	20,182)	20,733)	21,952)	16,617)
Total long-term debt, including current maturities (carrying amount)	20,203)	20,579)	20,264)	20,879)	22,003)	17,581)

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Debt item	Description	The company
Total long-term debt, including current maturities (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	FedEx Corp. total debt increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

	May 31, 2024
Selected Financial Data (US$ in millions)
Long-term debt, including current maturities and exclusive of finance leases	17,500)
Finance lease obligations	431)
Total long-term debt, including current maturities (fair value)	17,931)
Financial Ratio
Debt, fair value to carrying amount ratio	0.89

Weighted average interest rate on long-term debt: 3.50%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.50%	20,203)	707)
Total	20,203)	707)
3.50%

¹ US$ in millions

² Weighted-average interest rate = 100 × 707 ÷ 20,203 = 3.50%

FedEx Corp., interest costs incurred

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Interest expense	745)	694)	689)	793)	672)	588)
Capitalized interest	81)	77)	62)	68)	54)	64)
Interest costs incurred	826)	771)	751)	861)	726)	652)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	FedEx Corp. interest expense increased from 2022 to 2023 and from 2023 to 2024.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	FedEx Corp. capitalized interest increased from 2022 to 2023 and from 2023 to 2024.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	FedEx Corp. interest costs incurred increased from 2022 to 2023 and from 2023 to 2024.

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Selected Financial Data (US$ in millions)
Net income	4,331)	3,972)	3,826)	5,231)	1,286)	540)
Add: Income tax expense	1,505)	1,391)	1,070)	1,443)	383)	115)
Add: Interest expense	745)	694)	689)	793)	672)	588)
Earnings before interest and tax (EBIT)	6,581)	6,057)	5,585)	7,467)	2,341)	1,243)

Interest costs incurred	826)	771)	751)	861)	726)	652)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	8.83	8.73	8.11	9.42	3.48	2.11
Adjusted interest coverage ratio (with capitalized interest)²	7.97	7.86	7.44	8.67	3.22	1.91

2024 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 6,581 ÷ 745 = 8.83

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 6,581 ÷ 826 = 7.97

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	FedEx Corp. adjusted interest coverage ratio improved from 2022 to 2023 and from 2023 to 2024.

FedEx Corp. (NYSE:FDX)

Analysis of Debt