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. | 6.36% | 2.98% | -5.75% | -21.97% | -43.66% | — | |
| Union Pacific Corp. | 40.05% | 37.65% | 39.87% | 42.83% | 40.11% | — | |
| United Airlines Holdings Inc. | 8.93% | 7.84% | 5.20% | -4.15% | -41.41% | — | |
| United Parcel Service Inc. | 9.30% | 10.05% | 13.05% | 13.17% | 9.08% | — | |
| Operating Profit Margin, Sector | |||||||
| Transportation | 10.40% | 9.61% | 10.07% | 9.44% | 3.36% | — | |
| Operating Profit Margin, Industry | |||||||
| Industrials | 9.94% | 9.90% | 9.06% | 9.24% | 3.13% | — | |
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. | 22.41% | 5.06% | -28.68% | -2.84% | -60.76% | — | |
| Union Pacific Corp. | 27.82% | 26.45% | 28.13% | 29.92% | 27.38% | — | |
| United Airlines Holdings Inc. | 5.52% | 4.87% | 1.64% | -7.97% | -46.04% | — | |
| United Parcel Service Inc. | 6.35% | 7.37% | 11.51% | 13.25% | 1.59% | — | |
| Net Profit Margin, Sector | |||||||
| Transportation | 9.82% | 7.28% | 4.73% | 9.05% | -2.93% | — | |
| Net Profit Margin, Industry | |||||||
| Industrials | 8.06% | 8.32% | 5.04% | 5.85% | 0.09% | — | |
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. | 45.72% | 16.77% | -124.54% | -3.43% | -55.18% | — | |
| Union Pacific Corp. | 39.95% | 43.14% | 57.54% | 46.06% | 31.54% | — | |
| United Airlines Holdings Inc. | 24.84% | 28.08% | 10.69% | -39.05% | -118.61% | — | |
| United Parcel Service Inc. | 34.59% | 38.76% | 58.36% | 90.44% | 204.41% | — | |
| ROE, Sector | |||||||
| Transportation | 31.30% | 27.38% | 19.64% | 30.78% | -10.82% | — | |
| ROE, Industry | |||||||
| Industrials | 23.51% | 27.70% | 15.38% | 15.38% | 0.24% | — | |
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. | 19.23% | 4.88% | -28.47% | -1.28% | -20.35% | — | |
| Union Pacific Corp. | 9.96% | 9.50% | 10.69% | 10.27% | 8.57% | — | |
| United Airlines Holdings Inc. | 4.25% | 3.68% | 1.09% | -2.88% | -11.87% | — | |
| United Parcel Service Inc. | 8.25% | 9.47% | 16.24% | 18.57% | 2.15% | — | |
| ROA, Sector | |||||||
| Transportation | 8.53% | 6.44% | 4.34% | 6.88% | -2.01% | — | |
| ROA, Industry | |||||||
| Industrials | 5.24% | 5.61% | 3.31% | 3.40% | 0.04% | — | |
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. |