Flex Ltd (FLEX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 18,586,000 | 17,737,000 | 18,257,000 | 20,366,000 | 20,968,000 | 20,936,000 | 21,407,000 | 20,892,000 | 20,623,000 | 20,054,000 | 19,325,000 | 18,175,000 | 16,711,000 | 16,192,000 | 15,836,000 | 15,668,000 | 15,001,000 | 14,133,100 | 13,690,000 | 14,135,400 |
| Operating ROA | 4.77% | 4.91% | 4.67% | 4.50% | 4.66% | 4.88% | 5.04% | 5.19% | 5.22% | 4.93% | 5.02% | 5.64% | 6.07% | 5.88% | 5.01% | 5.35% | 5.25% | 3.12% | 2.93% | 3.22% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $887,000K ÷ $18,586,000K
= 4.77%
Flex Ltd's operating return on assets (operating ROA) has exhibited some fluctuations over the past few quarters but has generally remained in a range between 4.50% and 6.07%. The operating ROA indicates the efficiency with which the company generates profits from its assets used in operations.
In the most recent quarter, ending September 30, 2024, Flex Ltd's operating ROA stood at 4.77%, showing a slight decrease from the previous quarter's 4.91%. Despite the slight decline, the company's operating ROA remains relatively stable.
Looking back over the past several quarters, Flex Ltd experienced a peak in operating ROA at 6.07% in March 2021, followed by a gradual decline before stabilizing around the current levels. The overall trend suggests that the company has been able to effectively utilize its assets to generate operating income, albeit with some variability.
It is important for Flex Ltd to continue monitoring and managing its asset utilization effectively to ensure sustained profitability and efficiency in its operations. Additionally, the company may want to focus on strategies to improve its operating ROA to enhance overall financial performance in the future.
Peer comparison
Sep 30, 2024