FedEx (BUE:FDX) ROCE %

: 7.40% (As of Feb. 2024)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. FedEx's annualized ROCE % for the quarter that ended in Feb. 2024 was 7.40%.

FedEx ROCE % Historical Data

The historical data trend for FedEx's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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FedEx Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

ROCE %

3.81

5.02

13.08

8.74

10.94

FedEx Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %																7.05	14.59	9.56	8.61	7.40

FedEx ROCE % Calculation

FedEx's annualized ROCE % for the fiscal year that ended in May. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	1347137.403	/	( ( (9915967.954 - 1645934.909)	+	(19381475.106 - 3021662.334) )	/ 2 )
	=	1347137.403	/	( (8270033.045	+	16359812.772)	/ 2 )
	=	1347137.403	/	12314922.9085
	=	10.94 %

FedEx's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	1899799.972	/	( ( (30817849.538 - 4986799.925)	+	(30139899.548 - 4657799.93) )	/ 2 )
	=	1899799.972	/	( ( 25831049.613	+	25482099.618 )	/ 2 )
	=	1899799.972	/	25656574.6155
	=	7.40 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

FedEx (BUE:FDX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

FedEx ROCE % Related Terms

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FedEx (BUE:FDX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » FedEx Corp (BUE:FDX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

FDX:USA FDX:Peru FDX:Mexico 1FDX:Italy FDX:Germany FDXB34:Brazil

Address

942 South Shady Grove Road, Memphis, TN, USA, 38120

Website

https://www.fedex.com

FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2023, which ended May 2023, FedEx derived 47% of revenue from its express division, 37% from ground, and 11% from freight, its asset-based less-than-truckload shipping segment. The remainder comes from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016. TNT was previously the fourth-largest global parcel delivery provider.