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FedEx Return-on-Tangible-Equity

: 27.30%% (As of Aug. 2019)
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Return on tangible equity is calculated as Net Income attributable to Common Stockholders divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. FedEx's annualized net income attributable to common stockholders for the quarter that ended in Aug. 2019 was $2,976 Mil. FedEx's average shareholder tangible equity for the quarter that ended in Aug. 2019 was $10,901 Mil. Therefore, FedEx's annualized return on tangible equity (ROTE) for the quarter that ended in Aug. 2019 was 27.30 %%.

NYSE:FDX' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.77   Max: 44.87
Current: 3.77

3.77
44.87

During the past 13 years, FedEx's highest Return on Tangible Equity (ROTE) was 44.87%. The lowest was 3.77%. And the median was 16.59%.

NYSE:FDX's Return-on-Tangible-Equity is ranked lower than
69% of the 805 Companies
in the Transportation & Logistics industry.

( Industry Median: 8.03 vs. NYSE:FDX: 3.77 )

FedEx Return-on-Tangible-Equity Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

FedEx Annual Data
May10 May11 May12 May13 May14 May15 May16 May17 May18 May19
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.93 21.38 41.51 44.87 4.81

FedEx Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19
Return-on-Tangible-Equity 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 27.49 30.23 23.28 -67.15 27.30

Competitive Comparison
* 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.


FedEx Return-on-Tangible-Equity Distribution

* The bar in red indicates where FedEx's Return-on-Tangible-Equity falls into.



FedEx Return-on-Tangible-Equity Calculation

FedEx's annualized Return on Tangible Equity (ROTE) for the fiscal year that ended in May. 2019 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(A: May. 2019 )  (A: May. 2018 )(A: May. 2019 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ 2 )
(A: May. 2019 )  (A: May. 2018 )(A: May. 2019 )
=539/( (11963+10457 )/ 2 )
=539/11210
=4.81 % %

FedEx's annualized Return on Tangible Equity (ROTE) for the quarter that ended in Aug. 2019 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(Q: Aug. 2019 )  (Q: May. 2019 )(Q: Aug. 2019 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ 2 )
(Q: Aug. 2019 )  (Q: May. 2019 )(Q: Aug. 2019 )
=2976/( (10457+11345)/ 2 )
=2976/10901
=27.30 % %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual return on tangible equity, the net income attributable to common stockholders of the last fiscal year and the average total shareholder tangible 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 (Aug. 2019) net income attributable to common stockholders data. Return on Equity is displayed in the 10-year financial page.


FedEx  (NYSE:FDX) Return-on-Tangible-Equity Explanation

Return on Tangible Equity (ROTE) measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). ROTE shows how well a company uses investment funds to generate earnings growth. ROTEs between 15% and 20% are considered desirable.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its return on tangible equity by having more financial leverage, it is important to watch the leverage ratio when investing in high ROTE companies. Like Return-on-Tangible-Asset, ROTE 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 ROTEs can be extremely high.


FedEx Return-on-Tangible-Equity Related Terms

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