Debt-to-Equity Ratio

The debt-to-equity ratio measures the proportion of a company's financing that comes from debt compared to shareholders' equity; a ratio of 0.85x means FDX has $0.85 of debt for every $1.00 of equity, indicating a moderate use of leverage.

Compared to the sector median of 0.73x, FDX’s ratio is higher, placing it in the 58th percentile among peers, meaning it is more leveraged than about 58% of its sector. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp decline of -39.7% from 1.41x to 0.85x. Although the current level is above the sector median, the large QoQ reduction signals that FDX has been actively lowering its debt burden, which reduces financial risk. This combination of a slightly elevated but rapidly improving ratio implies a lower risk profile than the current level alone suggests. The metric supports the overall NEUTRAL verdict because the debt level is not extreme and the trend is favorable, balancing risk without a clear bullish or bearish signal.

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