Revenue Analysis: FedEx achieved a revenue of $21.97 billion, up 1.8% QoQ but down 0.89% YoY, indicating resilience in a tough market.
Profitability: The gross profit margins improved, yielding $5.64 billion in gross profit, with a margin of 25.68%, showcasing stronger operational efficiency despite falling revenues. However, net income saw a significant decrease to $741 million, with a net profit margin of 3.37%.
Operating Margins: Operating income fell to $1.05 billion, reflecting a 2.59% decrease QoQ and a 17.55% decline YoY.
Balance Sheet Highlights: Total assets stood at $85.48 billion with total liabilities of $59.02 billion, leading to net equity of $26.46 billion. The current ratio is 1.23, signaling adequate liquidity. The debt-to-equity ratio is problematic at 1.41, indicating a reliance on debt which requires careful monitoring.
Cash Flow Performance: FedEx generated $1.32 billion in net cash from operating activities, while investing and financing activities consumed $1.34 billion and $1.34 billion respectively, reflecting challenges in maintaining positive cash flow due to high capital expenditures and shareholder returns through dividends and stock repurchases.