Flex Ltd (FLEX)
Working capital turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,813,000 | 26,415,000 | 28,502,000 | 24,633,000 | 24,124,000 |
| Total current assets | US$ in thousands | 12,841,000 | 12,992,000 | 16,033,000 | 14,337,000 | 11,363,000 |
| Total current liabilities | US$ in thousands | 9,850,000 | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 |
| Working capital turnover | 8.63 | 5.93 | 5.52 | 6.79 | 6.84 |
March 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,813,000K ÷ ($12,841,000K – $9,850,000K)
= 8.63
Flex Ltd's working capital turnover has shown a fluctuating trend over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. In this case, a higher ratio indicates that Flex Ltd is effectively utilizing its working capital to generate sales revenue.
The working capital turnover ratio decreased from 6.84 in March 2021 to 6.79 in March 2022, showcasing a slight decline in efficiency. However, there was a more notable decrease to 5.52 in March 2023, suggesting a potential dip in working capital efficiency that year. The ratio then increased to 5.93 in March 2024, indicating a slight improvement in working capital turnover.
The most significant improvement in working capital turnover was observed in March 2025, with a ratio of 8.63. This substantial increase signifies a notable improvement in the efficiency of Flex Ltd in using its working capital to drive sales.
Overall, Flex Ltd's working capital turnover has experienced fluctuations, with varying levels of efficiency in utilizing its working capital over the analyzed period. It is essential for the company to continue monitoring and managing its working capital effectively to maintain or improve its operational efficiency and financial performance.
Peer comparison
Mar 31, 2025