The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 0.77% in 2019 to 4.41% in 2023.
The average EBIT Margin for the period under analysis was 5.3%, with 2019 and 2021 performing the worst and best, respectively.
In the current year, FedEx was able to cover its interest liabilities 8.73 times – compared to 2019 when it was 2.11times.
The Asset turnover stood at 1.05 times in 2023 from 1.3 times in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of FedEx has fluctuated year on year. The revenue decreased by 0.68% between 2019 and 2020 and a further 21.30% increase was recorded between 2020 and 2021. There also occurred a decrease of 3.95% between 2022 and 2023 (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 the current ratio increased from 1.37:1 to 1.45:1 in the last year. Which implies that the company 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 170% in the current year.
