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