showing the working

← FedEx Freight Holding

The business behind the dividend

MeasureFDXFMedianFormula
Return on equityNet income ÷ shareholders’ equity
Return on capital employed14.3%10.0%Operating income ÷ (equity + total debt)
Owner earnings$788.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-212.00m$155.08mOperating cash flow − capital expenditure
Operating margin6.1%14.3%Operating income ÷ revenue
Net margin7.4%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest cover9.47x4.22xOperating income ÷ interest expense
Current ratio1.52x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital8.31x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion0.25x1.66xOperating cash flow ÷ net income
Accruals7.1%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Debt to equity, Return on equity — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure202620252024Median
Return on equity56.2%74.1%56.2%
Return on capital employed14.3%57.1%14.3%
Operating margin6.1%15.8%18.6%15.8%
Net margin7.4%15.1%16.7%15.1%
Debt to equity0.03x0.03x
Current ratio1.52x0.37x0.37x
Cash conversion0.25x1.14x0.98x0.98x