Flex Ltd (FLEX)
Working capital turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,184,000 | 30,152,000 | 25,920,000 | 23,995,000 | 24,212,300 |
| Total current assets | US$ in thousands | 12,992,000 | 16,033,000 | 14,337,000 | 11,363,000 | 9,086,000 |
| Total current liabilities | US$ in thousands | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 | 7,211,000 |
| Working capital turnover | 5.88 | 5.84 | 7.15 | 6.80 | 12.91 |
March 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $26,184,000K ÷ ($12,992,000K – $8,539,000K)
= 5.88
Flex Ltd's working capital turnover has fluctuated over the past five years, ranging from a low of 5.84 in 2023 to a high of 12.91 in 2020. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales.
A higher working capital turnover ratio typically suggests that the company is efficiently managing its working capital, as it indicates that the company is generating more sales relative to its investment in current assets.
Flex Ltd's working capital turnover ratio has generally been in a healthy range, although there was a significant drop from 2020 to 2021. This could indicate a change in the company's working capital management or sales generation strategies during that period. Overall, the trend in working capital turnover over the past five years suggests that Flex Ltd has been effectively utilizing its working capital to support its sales activities.
Peer comparison
Mar 31, 2024