Flex Ltd (FLEX)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.12% | 6.55% | 7.45% | 7.03% | 5.53% |
| Operating profit margin | 3.26% | 3.37% | 3.75% | 3.31% | 1.71% |
| Pretax margin | 3.06% | 2.43% | 4.02% | 2.98% | 0.66% |
| Net profit margin | 3.84% | 2.63% | 3.61% | 2.55% | 0.36% |
Flex Ltd's profitability ratios over the past five years show some fluctuations. The gross profit margin has ranged from 5.53% to 7.45%, with the highest margin in 2022. This indicates some variability in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has fluctuated between 1.71% and 3.75%, with the lowest margin in 2020 and the highest in 2022. This suggests that Flex Ltd has been able to effectively control its operating expenses in some years more than others.
The pretax margin has shown a wider range, from 0.66% to 4.02%, with the highest margin in 2022. This metric reflects the company's ability to generate profits before taxes relative to its total revenue.
The net profit margin, which reflects the company's profitability after all expenses, has varied between 0.36% and 3.84%, with the highest margin in 2024. This indicates how successful Flex Ltd has been in managing its expenses to generate bottom-line profits for its shareholders.
Overall, while there have been fluctuations in Flex Ltd's profitability ratios over the past five years, the trend suggests improvements in recent years, with higher margins recorded in 2022 and 2024 compared to previous years.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.67% | 4.75% | 5.03% | 5.02% | 3.03% |
| Return on assets (ROA) | 5.51% | 3.70% | 4.84% | 3.87% | 0.64% |
| Return on total capital | 11.73% | 13.31% | 13.18% | 11.44% | 3.01% |
| Return on equity (ROE) | 18.89% | 14.82% | 22.67% | 17.84% | 3.11% |
Flex Ltd's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has been relatively stable, averaging around 4.90% over the period. This indicates that the company is generating consistent operating income relative to its total assets.
- Return on assets (ROA) has shown improvement, increasing from 0.64% in 2020 to 5.51% in 2024. This suggests that the company has become more efficient in generating profits from its assets.
- Return on total capital has fluctuated, with a significant increase in 2023 followed by a slight decline. Overall, the ratio has remained above 10% since 2022, indicating that the company is generating healthy returns on its total invested capital.
- Return on equity (ROE) has shown a general upward trend, reaching 18.89% in 2024. This indicates that the company is effectively utilizing shareholder equity to generate profits.
In conclusion, Flex Ltd has demonstrated improvements in profitability over the past five years, with a focus on efficiency and effective utilization of assets and capital to generate returns for its shareholders.