2022 Cash Flow Analysis for Fedex Corporation FDX

Fedex Corporation is a multinational courier delivery services company known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location. The company is headquartered in Memphis, Tennessee, and was founded in 1971. Fedex is recognized for its extensive air and ground network that facilitates the rapid delivery of packages and freight.

The cash flow statement shows how much cash or cash equivalents a company has generated and used during a specific period of time. It is divided into three sections: operating activities, investing activities, and financing activities. The cash flow statement helps investors and analysts understand how a company is managing its cash resources.

How to read the chart

The chart above shows the cash flow of Fedex Corporation in 2022. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We start on the left with the company's cash position at the beginning of the year. The cash decreased slightly during the year, indicating that the cash used for investing and financing activities was not fully offset by the cash generated from operating activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating more spending on investments than income from asset sales.

The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments or other financial obligations. After considering the change in cash, including the effect of exchange rates, we end on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To get a sense of the scale of Fedex Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2022. The counter is meant to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Fedex Corporation generated $9,832 million in cash from operating activities, spent $6,816 million on investing activities, and used $3,019 million in financing activities. As a result, the company's cash balance decreased by $190 million during the year, including the effect of exchange rate changes.

The company's beginning cash balance was $7,087 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $6,897 million.

The company's capital expenditures for the year were $6,763 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $3,069 million in 2022. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Fedex Corporation's cash flow for 2022 highlights a strong cash generation from operating activities, which was the primary source of cash. However, significant investments in capital expenditures and other investing activities led to a negative cash flow from investing activities. The company also used cash for financing activities, resulting in a slight decrease in the overall cash balance by the end of the fiscal year. Despite the decrease, Fedex maintained a healthy cash position, showcasing its ability to generate substantial free cash flow, which can be utilized for strategic investments or shareholder returns.