Flex Ltd (FLEX)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Revenue (ttm)	US$ in thousands	26,095,000	26,986,000	27,967,000	29,217,000	29,857,000	30,143,000	30,146,000	29,578,000	28,452,000	26,922,000	25,927,000	25,342,000	25,444,000	25,204,000	24,050,230	23,268,720	23,049,280	23,150,040	24,173,530	24,915,160
Property, plant and equipment	US$ in thousands	2,254,000	2,228,000	2,269,000	2,328,000	2,328,000	2,363,000	2,342,000	2,289,000	2,201,000	2,135,000	2,125,000	2,112,000	2,100,000	2,087,000	2,097,000	2,097,000	2,106,000	2,162,720	2,216,000	2,205,970
Fixed asset turnover		11.58	12.11	12.33	12.55	12.83	12.76	12.87	12.92	12.93	12.61	12.20	12.00	12.12	12.08	11.47	11.10	10.94	10.70	10.91	11.29

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $26,095,000K ÷ $2,254,000K
= 11.58

Flex Ltd's fixed asset turnover has shown a consistent increasing trend over the past few quarters, indicating that the company is generating more revenue from its fixed assets. The ratio has been above 10 for the last eight quarters, with values ranging from 10.70 to 12.93. This implies that for every dollar invested in fixed assets, the company is generating revenues between $10.70 and $12.93.

The highest fixed asset turnover was reported in Dec 31, 2021, at 12.93, suggesting the company efficiently utilized its fixed assets to generate sales during that period. While there was a slight dip in the ratio in Mar 31, 2021, to 11.47, the trend quickly recovered and has been increasing since then.

Overall, Flex Ltd's improving fixed asset turnover ratio indicates effective management of its fixed assets to generate sales and drive revenue growth.