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FedEx (BUE:FDX) Cash Ratio : 0.42 (As of Aug. 2024)


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What is FedEx Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. FedEx's Cash Ratio for the quarter that ended in Aug. 2024 was 0.42.

FedEx has a Cash Ratio of 0.42. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.

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

BUE:FDX' s Cash Ratio Range Over the Past 10 Years
Min: 0.17   Med: 0.45   Max: 0.69
Current: 0.42

During the past 13 years, FedEx's highest Cash Ratio was 0.69. The lowest was 0.17. And the median was 0.45.

BUE:FDX's Cash Ratio is ranked worse than
56.13% of 955 companies
in the Transportation industry
Industry Median: 0.51 vs BUE:FDX: 0.42

FedEx Cash Ratio Historical Data

The historical data trend for FedEx's Cash Ratio 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 Cash Ratio Chart

FedEx Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Cash Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.47 0.52 0.48 0.50 0.49

FedEx Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Cash Ratio Get a 7-Day Free Trial 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 0.51 0.47 0.42 0.49 0.42

Competitive Comparison of FedEx's Cash Ratio

For the Integrated Freight & Logistics subindustry, FedEx's Cash Ratio, along with its competitors' market caps and Cash Ratio 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's Cash Ratio Distribution in the Transportation Industry

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

* The bar in red indicates where FedEx's Cash Ratio falls into.



FedEx Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

FedEx's Cash Ratio for the fiscal year that ended in May. 2024 is calculated as:

Cash Ratio (A: May. 2024 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=5698126.56/11705657.623
=0.49

FedEx's Cash Ratio for the quarter that ended in Aug. 2024 is calculated as:

Cash Ratio (Q: Aug. 2024 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=5538875.863/13151451.674
=0.42

* 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.


FedEx  (BUE:FDX) Cash Ratio Explanation

The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.

The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.

In general, the higher the cash ratio, the better the company's liquidity position.


FedEx Cash Ratio Related Terms

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FedEx Business Description

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 2024, which ended in May, FedEx derived 47% of revenue from its express division, 37% from ground, and 10% from freight, its asset-based less-than-truckload shipping segment. The remainder came 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, boosting its presence across Europe. TNT was previously the fourth-largest global parcel delivery provider.