Flex Ltd (FLEX)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	26,184,000	30,152,000	25,920,000	23,995,000	24,212,300
Property, plant and equipment	US$ in thousands	2,269,000	2,342,000	2,125,000	2,097,000	2,216,000
Fixed asset turnover		11.54	12.87	12.20	11.44	10.93

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $26,184,000K ÷ $2,269,000K
= 11.54

Flex Ltd's fixed asset turnover has exhibited a generally positive trend over the past five years. The ratio has consistently increased from 10.93 in 2020 to 11.54 in 2024, indicating that the company is generating more revenue relative to its investment in fixed assets. This upward trajectory suggests improved efficiency in utilizing fixed assets to generate sales. However, it is important to note that the rate of increase has slightly slowed down in recent years, with a marginal decrease in 2024 compared to the previous year. Overall, the trend indicates that Flex Ltd has been effectively managing its fixed assets to drive revenue growth, although there may be room for further optimization to enhance efficiency in the future.