Flex Ltd (FLEX)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	887,000	871,000	853,000	917,000	978,000	1,022,000	1,079,000	1,084,000	1,076,000	988,000	971,000	1,025,000	1,014,000	952,000	794,000	837,986	788,149	440,751	400,631	454,940
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
Operating profit margin		3.40%	3.23%	3.05%	3.14%	3.28%	3.39%	3.58%	3.66%	3.78%	3.67%	3.75%	4.04%	3.99%	3.78%	3.30%	3.60%	3.42%	1.90%	1.66%	1.83%

September 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $887,000K ÷ $26,095,000K
= 3.40%

Flex Ltd's operating profit margin has shown some fluctuations over the past few quarters, ranging from a low of 1.66% in June 2020 to a high of 4.04% in December 2021. The trend indicates some volatility in the company's ability to generate profit from its core operations.

In recent quarters, the operating profit margin has been hovering around the 3% range, with slight variations. This suggests that Flex Ltd has been able to maintain a consistent level of efficiency in managing its operating expenses relative to its revenue. However, the company may still face challenges in improving its profitability, as evidenced by the variability in the margin figures.

It is essential for Flex Ltd to closely monitor its operating expenses and revenue generation to ensure that the operating profit margin remains stable and ideally increases over time. This can help the company strengthen its financial position and enhance shareholder value.