Asset Breakdown
47.8 B
Assets Non Current
Goodwill
15.1 B
Current Assets
| Total Assets | 62.92 Billion | |
| Current Assets | 15.11 Billion | |
| Assets Non Current | 47.81 Billion | |
| Goodwill | 6.01 Billion | |
| Tax Assets | 476.91 Million |
You think FedEx (NYSE:FDX) debt is an issue for investors?
 | By Rifka Kats | Macroaxis Story |
FedEx is scheduled to announce its earnings today. The next earnings report is expected on the 16th of March 2021. FedEx PPandE Turnover is fairly stable at the moment as compared to the past year. FedEx reported PPandE Turnover of 2.16 in 2019. Receivables Turnover is likely to rise to 8.66 in 2020, whereas Revenue Per Employee is likely to drop slightly above 269.5 K in 2020. As many investors are getting excited about industrials space, it is fair to break down FedEx as an investment option.
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Reviewed by Michael Smolkin
FedEx has 38.03 B in debt with debt to equity (D/E) ratio of 1.95, which is OK given its current industry classification. On a scale of 0 to 100, FedEx holds a performance score of 10. The firm shows a Beta (market volatility) of -0.1222, which means not very significant fluctuations relative to the market. Let's try to break down what FedEx's beta means in this case. As returns on the market increase, returns on owning FedEx are expected to decrease at a much lower rate. During the bear market, FedEx is likely to outperform the market. Although it is vital to follow FedEx historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing FedEx technical indicators, you can presently evaluate if the expected return of 0.29% will be sustainable into the future. Please utilizes FedEx maximum drawdown, and the relationship between the information ratio and expected short fall to make a quick decision on whether FedEx price patterns will revert. FedEx financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of FedEx, including all of FedEx's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of FedEx assets, the company is considered highly leveraged. Understanding the composition and structure of overall FedEx debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding FedEx Total Debt
FedEx liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. FedEx has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on FedEx balance sheet include debt obligations and money owed to different FedEx vendors, workers, and loan providers. Below is the chart of FedEx main long-term debt accounts currently reported on its balance sheet. You can use FedEx financial leverage analysis tool to get a better grip on understanding its financial positionHow important is FedEx's Liquidity
FedEx financial leverage refers to using borrowed capital as a funding source to finance FedEx ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FedEx financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to FedEx's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of FedEx's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between FedEx's total debt and its cash.
Is FedEx valued reasonably by the market?
The entity reported the last year's revenue of 71.49 B. Total Income to common stockholders was 1.78 B with profit before taxes, overhead, and interest of 16.84 B.
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