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FedEx Gross Margin %

: 20.51% (As of Aug. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. FedEx's Gross Profit for the three months ended in Aug. 2019 was $3,496 Mil. FedEx's Revenue for the three months ended in Aug. 2019 was $17,048 Mil. Therefore, FedEx's Gross Margin % for the quarter that ended in Aug. 2019 was 20.51%.


NYSE:FDX' s Gross Margin % Range Over the Past 10 Years
Min: 19.82   Max: 65.72
Current: 21.31

19.82
65.72

During the past 13 years, the highest Gross Margin % of FedEx was 65.72%. The lowest was 19.82%. And the median was 21.48%.

NYSE:FDX's Gross Margin % is ranked higher than
54% of the 800 Companies
in the Transportation & Logistics industry.

( Industry Median: 20.01 vs. NYSE:FDX: 21.31 )

FedEx had a gross margin of 20.51% for the quarter that ended in Aug. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for FedEx was -0.70% per year.


FedEx Gross Margin % 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
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.65 23.48 22.08 21.55 21.27

FedEx Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19
Gross Margin % 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 20.37 21.04 19.98 23.61 20.51

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 Gross Margin % Distribution

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



FedEx Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

FedEx's Gross Margin for the fiscal year that ended in May. 2019 is calculated as

Gross Margin % (A: May. 2019 )=Gross Profit (A: May. 2019 ) / Revenue (A: May. 2019 )
=14827 / 69693
=(Revenue - Cost of Goods Sold) / Revenue
=(69693 - 54866) / 69693
=21.27 %

FedEx's Gross Margin for the quarter that ended in Aug. 2019 is calculated as


Gross Margin % (Q: Aug. 2019 )=Gross Profit (Q: Aug. 2019 ) / Revenue (Q: Aug. 2019 )
=-13552 / 17048
=(Revenue - Cost of Goods Sold) / Revenue
=(17048 - 13552) / 17048
=20.51 %

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

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


FedEx  (NYSE:FDX) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

FedEx had a gross margin of 20.51% for the quarter that ended in Aug. 2019 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


FedEx Gross Margin % Related Terms


FedEx Gross Margin % Headlines

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