Flex Ltd (FLEX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 23,857,000 | 24,704,000 | 25,668,000 | 28,198,000 | 28,873,000 | 29,219,000 | 29,249,000 | 28,645,000 | 27,583,000 | 26,125,000 | 25,137,000 | 24,482,500 | 24,614,500 | 24,441,900 | 23,410,610 | 22,910,220 | 22,675,600 | 23,000,040 | 24,003,000 | 24,872,200 |
| Inventory | US$ in thousands | 5,466,000 | 5,839,000 | 6,205,000 | 6,815,000 | 7,166,000 | 7,526,000 | 7,388,000 | 7,838,000 | 7,726,000 | 7,243,000 | 6,580,000 | 5,958,000 | 5,168,000 | 4,444,000 | 3,895,000 | 3,699,000 | 3,611,000 | 3,483,480 | 3,785,000 | 3,684,170 |
| Inventory turnover | 4.36 | 4.23 | 4.14 | 4.14 | 4.03 | 3.88 | 3.96 | 3.65 | 3.57 | 3.61 | 3.82 | 4.11 | 4.76 | 5.50 | 6.01 | 6.19 | 6.28 | 6.60 | 6.34 | 6.75 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $23,857,000K ÷ $5,466,000K
= 4.36
Flex Ltd's inventory turnover has shown a fluctuating trend over the past eight quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times inventory is sold and replaced during a specific period.
The inventory turnover ratio for Flex Ltd has ranged from 3.57 to 6.75 over the past eight quarters. A higher inventory turnover ratio generally indicates that the company is selling goods more quickly and efficiently. In this case, Flex Ltd's inventory turnover has generally been above 4, suggesting a decent level of inventory management efficiency.
The ratio peaked at 6.75 in June 2021, indicating a rapid turnover of inventory at that point in time. However, the ratio has since decreased, with the most recent figure standing at 4.36 as of September 2024. This decline could be attributed to various factors such as changes in sales volume, inventory management practices, or market conditions.
Overall, Flex Ltd's inventory turnover has shown some variability but remains at a relatively healthy level, indicating a reasonable control over its inventory levels and efficient sales operations. Monitoring this ratio over time can help assess the company's operating performance and efficiency in managing its inventory.
Peer comparison
Sep 30, 2024
Sep 30, 2024