Income Statement (Data) Financial Analysis
Revenue: Revenue slightly decreased by 2.73% from
2023 to 2024, likely due to reduced global
(2024): $87,693M demand or competitive pressure. This needs
(2023): $90,155M further analysis of market conditions.
Operating Expenses: Operating expenses decreased by about
3.64%. Notable decreases include fuel costs
(2024): $(82,134)M ($4,710M in 2024 from $5,909M in 2023)
(2023): $(85,243)M due to likely changes in global oil prices.
This positively impacted margins despite
lower revenue.
Operating Income: Operating income rose by 13.16%,
indicating FedEx's ability to control costs
(2024): $5,559M despite lower revenues. Efficiency measures,
(2023): $4,912M including reducing purchased
transportation and other expenses, likely
contributed to this growth.
Interest Expense: Interest expenses increased by 7.35%,
possibly due to higher borrowing costs amid
(2024): $(745)M rising interest rates. This can be analyzed
(2023): $(694)M further in terms of FedEx’s debt structure
and market conditions.
Interest Income: Interest income increased by 86.87%, which
may be due to better yields on cash holdings
(2024): $370M or investments. This helps offset some of the
(2023): $198M interest expense increases.
Operating Income: A smaller loss on other income/expenses (a
34.58% improvement) suggests fewer
(2024): $5,559M exceptional costs, indicating better
(2023): $4,912M management of non-core financial activities.
Income Before Income Taxes: Income before taxes rose by 8.82%,
supported by lower fuel costs and operating
(2024): $5,836M efficiencies. Despite decreasing revenues,
(2023): $5,363M profitability was maintained, indicating good
financial management.
Net Income: Net income increased by 9.04%, a positive
outcome given the revenue decline.
(2024): $4,331M Adjustments would focus on analyzing non-
(2023): $3,972M operating income, including changes in
pension income, and assessing the impact of
lower operating expenses on profitability.
