2023 Cash Flow Analysis for Fedex Corporation FDX

Fedex Corporation is a multinational delivery services company that provides transportation, e-commerce, and business services. The company is headquartered in Memphis, Tennessee, and was founded in 1971. Fedex is renowned for its global logistics services, including express transportation, freight, and package delivery, as well as its advanced tracking systems.

The cash flow statement is a financial document that illustrates how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts as it provides insights into how a company manages its cash resources.

How to read the chart

The chart above shows the cash flow of Fedex Corporation in 2023. 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 flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After taking the change in cash, including the effects of exchange rates, into account, 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 2023. 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 2023. 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 2023, Fedex Corporation generated $8,848 million in cash from operating activities, spent $6,174 million on investing activities, and used $2,597 million for financing activities. The company's cash balance decreased by $41 million during the year, including the effects of exchange rate changes.

The company's beginning cash balance was $6,897 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $6,856 million.

The company's capital expenditures for the year were $6,174 million, representing the cash 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 $2,674 million in 2023. This amount represents the cash available to pay dividends, repurchase stock, or make other investments.

Summary

Fedex Corporation's cash flow in 2023 reflects a strong operational performance, with significant cash generated from operating activities. However, the company also made substantial investments, as indicated by the negative cash flow from investing activities. Despite these investments, Fedex maintained a stable cash position, ending the year with a slight decrease in cash balance. The company's free cash flow of $2,674 million highlights its ability to generate cash after capital expenditures, providing flexibility for future growth opportunities and shareholder returns.