Flex Ltd (FLEX)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.36% | 7.06% | 6.93% | 7.23% | 6.99% |
| Operating profit margin | 4.53% | 3.89% | 3.57% | 3.61% | 3.30% |
| Pretax margin | 3.96% | 2.52% | 2.83% | 3.91% | 2.96% |
| Net profit margin | 3.25% | 3.81% | 2.78% | 3.80% | 2.54% |
Flex Ltd's gross profit margin has shown a slight improvement over the past five years, increasing from 6.99% in March 2021 to 8.36% in March 2025. This indicates that the company is becoming more efficient in generating sales revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also been on an upward trend, rising from 3.30% in March 2021 to 4.53% in March 2025. This suggests that Flex Ltd has been able to control its operating expenses better while increasing its operating income.
The pretax margin, however, has been somewhat fluctuating over the same period, with a peak of 3.91% in March 2022 and a low of 2.52% in March 2024. This ratio indicates the company's ability to generate profits before accounting for taxes relative to its total revenue.
Lastly, the net profit margin has also shown variation, but with a relatively stable trend overall. It increased from 2.54% in March 2021 to 3.81% in March 2024 before slightly declining to 3.25% in March 2025. This ratio reflects Flex Ltd's ability to generate profits after all expenses have been deducted, including taxes and interest.
Overall, Flex Ltd's profitability ratios demonstrate a generally positive trend, with improvements in gross profit margin and operating profit margin indicating efficiency gains, despite some fluctuations in pretax and net profit margins.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.36% | 5.63% | 4.75% | 4.61% | 5.02% |
| Return on assets (ROA) | 4.56% | 5.51% | 3.70% | 4.84% | 3.87% |
| Return on total capital | 24.81% | 19.77% | 19.51% | 26.79% | 11.23% |
| Return on equity (ROE) | 16.75% | 18.89% | 14.82% | 22.67% | 17.84% |
Flex Ltd's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has fluctuated slightly, ranging from 4.61% to 6.36%. This ratio indicates that for every dollar of assets, the company generated operating income between approximately 4.61 cents and 6.36 cents.
- Return on assets (ROA) increased from 3.87% in 2021 to 5.51% in 2024, before declining to 4.56% in 2025. ROA measures the company's ability to generate profits from its assets, showing an improvement overall.
- Return on total capital ranged from 11.23% in 2021 to 26.79% in 2022, indicating a significant increase in profitability compared to capital employed. The ratio stabilized around 19-25% in subsequent years, signaling efficient use of total capital.
- Return on equity (ROE) fluctuated between 14.82% and 22.67% over the period. This metric reflects the profitability of shareholders' equity investment and shows a moderate performance by Flex Ltd.
Overall, while some profitability ratios showed variability, Flex Ltd managed to maintain a decent level of profitability across the years, with a focus on generating returns for both assets and equity.