FedEx

https://app.powerbi.com/view?r=eyJrIjoiNzBkYmU5NmEtMDAyOS00MzQwLTlhNDYtYzY0NTY0ZmMyOTQ1IiwidCI6IjY5YjM4YTc5LTk3MDItNDYzYy05N2JkLTNlMTFhMjZlZjAyMyJ9

Key Performance Metrics

  • The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 4.97% in 2017 to 6.23% in 2021.
  • The average EBIT Margin for the period under analysis was 6.20%, with 20120 and 2017 performing the worst and best, respectively.
  • In the current year, FedEx was able to cover its interest liabilities 7.39 times in the current year- compared to 2017 when it was 8.92 times.
  • The Asset turnover stood at 1.01 times in 2021 from 8.92 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of FedEx has increased year on year. The revenue increased by 8.5% between 2017 and 2018 and a further 6.5% increase was recorded between 2018 and 2019. There also occurred an increase of 21.3% between 2020 and 2021 (the current period). 
  • FedEx’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as current ratio decreased from 1.58:1 to 1.51:1 on the last year. Which implies that the company [does not have]/has enough assets to settle its current liabilities.

Capital Structure

  • FedEx is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be high as it stood at 100% in the current year.

Source: FedEx Annual Report

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