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FedEx ROE %

: 9.02% (As of May. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. FedEx's annualized net income attributable to common stockholders for the quarter that ended in May. 2022 was $2,232 Mil. FedEx's average Total Stockholders Equity over the quarter that ended in May. 2022 was $24,733 Mil. Therefore, FedEx's annualized ROE % for the quarter that ended in May. 2022 was 9.02%.

The historical rank and industry rank for FedEx's ROE % or its related term are showing as below:

FDX' s ROE % Range Over the Past 10 Years
Min: 2.9   Med: 14.89   Max: 25.73
Current: 15.54

During the past 13 years, FedEx's highest ROE % was 25.73%. The lowest was 2.90%. And the median was 14.89%.

FDX's ROE % is ranked better than
70.05% of 888 companies
in the Transportation industry
Industry Median: 7.67 vs FDX: 15.54

FedEx ROE % Historical Data

The historical data trend for FedEx's ROE % 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.

* Premium members only.

FedEx Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.73 2.90 7.12 24.59 15.58

FedEx Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.31 18.31 16.92 17.95 9.02

Competitive Comparison

For the Integrated Freight & Logistics subindustry, FedEx's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

FedEx ROE % Distribution

For the Transportation industry and Industrials sector, FedEx's ROE % distribution charts can be found below:

* The bar in red indicates where FedEx's ROE % falls into.



FedEx ROE % Calculation

FedEx's annualized ROE % for the fiscal year that ended in May. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: May. 2022 )/( (Total Stockholders Equity (A: May. 2021 )+Total Stockholders Equity (A: May. 2022 ))/ count )
=3826/( (24168+24939)/ 2 )
=3826/24553.5
=15.58 %

FedEx's annualized ROE % for the quarter that ended in May. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: May. 2022 )/( (Total Stockholders Equity (Q: Feb. 2022 )+Total Stockholders Equity (Q: May. 2022 ))/ count )
=2232/( (24526+24939)/ 2 )
=2232/24732.5
=9.02 %

* 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.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (May. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


FedEx  (NYSE:FDX) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: May. 2022 )
=Net Income/Total Stockholders Equity
=2232/24732.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2232 / 97576)*(97576 / 85051)*(85051 / 24732.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.29 %*1.1473*3.4388
=ROA %*Equity Multiplier
=2.63 %*3.4388
=9.02 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: May. 2022 )
=Net Income/Total Stockholders Equity
=2232/24732.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (2232 / 2736) * (2736 / 7936) * (7936 / 97576) * (97576 / 85051) * (85051 / 24732.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8158 * 0.3448 * 8.13 % * 1.1473 * 3.4388
=9.02 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (May. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (May. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* 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.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


FedEx ROE % Related Terms

Thank you for viewing the detailed overview of FedEx's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


FedEx Business Description

FedEx logo
Industry
Industrials » Transportation NAICS : 492110 SIC : 4513
Address
942 South Shady Grove Road, Memphis, TN, USA, 38120
FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2020 (ended May 2020), FedEx derived 51% of revenue from its express division, 33% from ground, and 10% 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.
Executives
Brannon Jill officer: EVP - Chief Sales Officer 942 S. SHADY GROVE ROAD MEMPHIS TN 38120
Merino John L officer: CVP PRIN ACCT OFFICER 942 S SHADY GROVE ROAD MEMPHIS TN 38120
Maier Henry J officer: President and CEO/FedEx Ground 1000 FEDEX DRIVE MOON TOWNSHIP PA 15108
Walsh Paul S director 8 HENRIETTA PLACE LONDON X0 94111
Colleran Donald F officer: President/CEO FedEx Express 942 SOUTH SHADY GROVE ROAD MEMPHIS TN 38117
Carter Robert B officer: EVP / Chief Info Officer 942 S SHADY GROVE RD MEMPHIS TN 38120
Carere Brie officer: EVP/Chief Mkt & Comm Officer 942 S. SHADY GROVE ROAD MEMPHIS TN 38120
Martin R Brad director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MARTIN R BRAD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Smith John Alan officer: President & CEO/FedEx Freight 1715 AARON BRENNER DRIVE MEMPHIS TN 38120
Jackson Shirley A director 110 8TH STREEET TROY NY 12180-3590
Lenz Michael C. officer: EVP CHIEF FINANCIAL OFF 942 S. SHADY GROVE ROAD MEMPHIS TN 38120
Inglis John C director 605 HILLSMERE DRIVE ANNAPOLIS MD 21403
Steiner David P director 1001 FANNIN ST STE 4000 HOUSTON TX 77002
Griffith Susan Patricia director 6300 WILSON MILLS ROAD MAYFIELD VILLAGE OH 44143
Schwab Susan C director 2101 VAN MUNCHING HALL COLLEGE PARK MD 20742

FedEx Headlines

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