Flex Ltd (FLEX)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 26,095,000 | 26,986,000 | 27,967,000 | 29,217,000 | 29,857,000 | 30,143,000 | 30,146,000 | 29,578,000 | 28,452,000 | 26,922,000 | 25,927,000 | 25,342,000 | 25,444,000 | 25,204,000 | 24,050,230 | 23,268,720 | 23,049,280 | 23,150,040 | 24,173,530 | 24,915,160 |
| Total current assets | US$ in thousands | 13,351,000 | 12,548,000 | 12,992,000 | 14,877,000 | 15,463,000 | 15,540,000 | 16,033,000 | 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 | 9,086,000 | 9,360,710 |
| Total current liabilities | US$ in thousands | 9,306,000 | 8,969,000 | 8,539,000 | 9,386,000 | 10,106,000 | 10,638,000 | 10,867,000 | 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 | 7,211,000 | 7,550,950 |
| Working capital turnover | 6.45 | 7.54 | 6.28 | 5.32 | 5.57 | 6.15 | 5.84 | 7.13 | 8.17 | 7.57 | 7.15 | 7.10 | 7.28 | 7.02 | 6.82 | 6.48 | 6.94 | 8.37 | 12.89 | 13.77 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $26,095,000K ÷ ($13,351,000K – $9,306,000K)
= 6.45
Flex Ltd's working capital turnover has varied over the past 20 quarters, ranging from a low of 5.32 to a high of 13.77. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively using its working capital to generate sales.
Analyzing the trend, the working capital turnover has generally been above 6 over the period, indicating that Flex Ltd has been efficient in utilizing its working capital. There are fluctuations in the ratio over time, with some quarters exhibiting higher efficiency than others.
It is worth noting that the working capital turnover ratio has shown an increasing trend from 2019 to 2022, indicating improved efficiency in utilizing working capital during these years. However, the ratio has shown some variability in recent quarters, potentially reflecting changes in operational efficiency or business conditions.
Overall, the working capital turnover ratio for Flex Ltd suggests that the company has been effectively managing its working capital to support its sales activities. However, it would be important to further investigate the specific factors influencing the fluctuation in the ratio in different quarters to gain a deeper understanding of the company's operational performance and financial management.
Peer comparison
Sep 30, 2024