Flex Ltd (FLEX)

Fixed asset turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	25,813,000	26,415,000	28,502,000	24,633,000	24,124,000
Property, plant and equipment	US$ in thousands	—	—	2,349,000	2,762,000	2,097,000
Fixed asset turnover		—	—	12.13	8.92	11.50

March 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,813,000K ÷ $—K
= —

Fixed asset turnover is a crucial financial ratio that measures the efficiency of a company in generating revenue from its fixed assets. For Flex Ltd, the trend in fixed asset turnover over the past few years is as follows:

- As of March 31, 2021, the fixed asset turnover ratio was 11.50, indicating that Flex Ltd generated $11.50 in revenue for every dollar invested in fixed assets. This suggests high efficiency in utilizing its fixed assets to generate sales.

- By March 31, 2022, the fixed asset turnover ratio decreased to 8.92, implying a decline in the efficiency of generating revenue from fixed assets compared to the previous year. This could be a signal of potential inefficiencies in asset utilization or changes in the company's operations impacting asset performance.

- The ratio improved significantly by March 31, 2023, reaching 12.13, reflecting a substantial increase in the revenue generated from fixed assets. This could indicate enhanced operational efficiency or strategic changes positively impacting asset utilization.

- Unfortunately, data for March 31, 2024, and March 31, 2025, is unavailable (denoted as "—"). Without this information, it is challenging to assess the recent trend in fixed asset turnover for Flex Ltd.

In conclusion, Flex Ltd experienced fluctuations in fixed asset turnover over the analyzed period, with varying levels of efficiency in generating revenue from fixed assets. Monitoring this ratio in conjunction with additional financial metrics can provide insights into the company's operational performance and asset management strategies.