Flex Ltd (FLEX)

Inventory turnover

Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021 Mar 31, 2020
Cost of revenue US$ in thousands 25,668,000 29,249,000 25,144,000 23,411,500 24,003,000
Inventory US$ in thousands 6,205,000 7,388,000 6,580,000 3,895,000 3,785,000
Inventory turnover 4.14 3.96 3.82 6.01 6.34

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $25,668,000K ÷ $6,205,000K
= 4.14

Inventory turnover measures how many times a company's inventory is sold and replaced within a given period. A higher inventory turnover ratio indicates that the company is selling its goods more frequently. Flex Ltd's inventory turnover has fluctuated over the past five years. It decreased from 6.34 in 2020 to 3.82 in 2022 before picking up again to 4.14 in 2024. This variability may suggest changes in demand, production efficiency, or inventory management practices within the company. Overall, a higher inventory turnover ratio is generally favorable as it signifies efficient management of inventory levels. However, it is essential to consider industry norms and company-specific factors when evaluating the significance of this metric.


Peer comparison

Mar 31, 2024