Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
FedEx Corp., profitability ratios
Based on: 10-K (reporting date: 2024-05-31), 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | FedEx Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | FedEx Corp. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | FedEx Corp. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | FedEx Corp. ROA improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
FedEx Corp., operating profit margin calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 5,559) | 4,912) | 6,245) | 5,857) | 2,417) | 4,466) | |
| Revenue | 87,693) | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 6.34% | 5.45% | 6.68% | 6.98% | 3.49% | 6.41% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Uber Technologies Inc. | — | 2.98% | -5.75% | -21.97% | -43.66% | -60.76% | |
| Union Pacific Corp. | — | 37.65% | 39.87% | 42.83% | 40.11% | 39.40% | |
| United Parcel Service Inc. | — | 10.05% | 13.05% | 13.17% | 9.08% | 10.52% | |
| Operating Profit Margin, Sector | |||||||
| Transportation | — | 10.00% | 10.94% | 10.96% | 7.08% | 6.80% | |
| Operating Profit Margin, Industry | |||||||
| Industrials | — | 10.07% | 9.34% | 9.80% | 4.43% | 9.67% | |
Based on: 10-K (reporting date: 2024-05-31), 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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 5,559 ÷ 87,693 = 6.34%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | FedEx Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Net Profit Margin
FedEx Corp., net profit margin calculation, comparison to benchmarks
| 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) | |
| Revenue | 87,693) | 90,155) | 93,512) | 83,959) | 69,217) | 69,693) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 4.94% | 4.41% | 4.09% | 6.23% | 1.86% | 0.77% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Uber Technologies Inc. | — | 5.06% | -28.68% | -2.84% | -60.76% | -60.13% | |
| Union Pacific Corp. | — | 26.45% | 28.13% | 29.92% | 27.38% | 27.27% | |
| United Parcel Service Inc. | — | 7.37% | 11.51% | 13.25% | 1.59% | 5.99% | |
| Net Profit Margin, Sector | |||||||
| Transportation | — | 7.81% | 5.28% | 10.95% | 0.66% | 1.33% | |
| Net Profit Margin, Industry | |||||||
| Industrials | — | 8.61% | 5.27% | 6.43% | 1.43% | 3.90% | |
Based on: 10-K (reporting date: 2024-05-31), 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).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,331 ÷ 87,693 = 4.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | FedEx Corp. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
FedEx Corp., ROE calculation, comparison to benchmarks
| 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) | |
| Common stockholders’ investment | 27,582) | 26,088) | 24,939) | 24,168) | 18,295) | 17,757) | |
| Profitability Ratio | |||||||
| ROE1 | 15.70% | 15.23% | 15.34% | 21.64% | 7.03% | 3.04% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Uber Technologies Inc. | — | 16.77% | -124.54% | -3.43% | -55.18% | -59.94% | |
| Union Pacific Corp. | — | 43.14% | 57.54% | 46.06% | 31.54% | 32.65% | |
| United Parcel Service Inc. | — | 38.76% | 58.36% | 90.44% | 204.41% | 135.90% | |
| ROE, Sector | |||||||
| Transportation | — | 27.29% | 20.60% | 36.02% | 2.51% | 4.49% | |
| ROE, Industry | |||||||
| Industrials | — | 27.68% | 15.53% | 16.58% | 3.94% | 13.76% | |
Based on: 10-K (reporting date: 2024-05-31), 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).
1 2024 Calculation
ROE = 100 × Net income ÷ Common stockholders’ investment
= 100 × 4,331 ÷ 27,582 = 15.70%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | FedEx Corp. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Assets (ROA)
FedEx Corp., ROA calculation, comparison to benchmarks
| 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) | |
| Total assets | 87,007) | 87,143) | 85,994) | 82,777) | 73,537) | 54,403) | |
| Profitability Ratio | |||||||
| ROA1 | 4.98% | 4.56% | 4.45% | 6.32% | 1.75% | 0.99% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Uber Technologies Inc. | — | 4.88% | -28.47% | -1.28% | -20.35% | -26.78% | |
| Union Pacific Corp. | — | 9.50% | 10.69% | 10.27% | 8.57% | 9.60% | |
| United Parcel Service Inc. | — | 9.47% | 16.24% | 18.57% | 2.15% | 7.67% | |
| ROA, Sector | |||||||
| Transportation | — | 7.18% | 5.20% | 9.49% | 0.52% | 1.16% | |
| ROA, Industry | |||||||
| Industrials | — | 5.75% | 3.46% | 3.83% | 0.74% | 2.39% | |
Based on: 10-K (reporting date: 2024-05-31), 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).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,331 ÷ 87,007 = 4.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | FedEx Corp. ROA improved from 2022 to 2023 and from 2023 to 2024. |