Flex Ltd (FLEX)
Working capital turnover
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,813,000 | 25,584,000 | 26,131,000 | 27,057,000 | 28,079,000 | 29,387,000 | 30,040,000 | 30,335,000 | 30,346,000 | 29,720,000 | 28,583,000 | 27,046,000 | 26,041,000 | 25,456,000 | 25,557,000 | 25,313,000 | 24,124,330 | 23,342,820 | 23,084,210 | 23,187,260 |
| Total current assets | US$ in thousands | 12,841,000 | 12,756,000 | 13,351,000 | 12,548,000 | 12,992,000 | 14,877,000 | 15,463,000 | 15,540,000 | 16,021,000 | 15,819,000 | 15,630,000 | 15,147,000 | 14,337,000 | 13,213,000 | 12,183,000 | 11,729,000 | 11,363,000 | 11,111,000 | 10,479,000 | 9,562,380 |
| Total current liabilities | US$ in thousands | 9,850,000 | 9,037,000 | 9,306,000 | 8,969,000 | 8,539,000 | 9,386,000 | 10,106,000 | 10,638,000 | 10,855,000 | 11,668,000 | 12,146,000 | 11,590,000 | 10,711,000 | 9,642,000 | 8,688,000 | 8,138,000 | 7,834,000 | 7,519,000 | 7,157,000 | 6,795,250 |
| Working capital turnover | 8.63 | 6.88 | 6.46 | 7.56 | 6.31 | 5.35 | 5.61 | 6.19 | 5.87 | 7.16 | 8.20 | 7.60 | 7.18 | 7.13 | 7.31 | 7.05 | 6.84 | 6.50 | 6.95 | 8.38 |
March 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $25,813,000K ÷ ($12,841,000K – $9,850,000K)
= 8.63
Flex Ltd's working capital turnover has been fluctuating over the years, indicating varying efficiencies in managing its working capital. The ratio ranged from a low of 5.35 on December 31, 2023, to a high of 8.63 on March 31, 2025. A higher turnover ratio suggests the company is more effectively using its working capital to generate sales revenue.
It is worth noting that there was a significant increase in the working capital turnover from March 31, 2024, to June 30, 2024, reflecting a potential improvement in working capital management efficiency during that period. However, the ratio decreased again in the subsequent quarters.
Overall, the trend in Flex Ltd's working capital turnover indicates that the company has experienced fluctuations in its ability to efficiently utilize its working capital to support its sales activities. An ongoing analysis of this ratio, along with other financial metrics, will be necessary to assess the company's working capital management effectiveness accurately.
Peer comparison
Mar 31, 2025