Flex Ltd (FLEX)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 8.36% | 8.24% | 8.25% | 8.43% | 8.53% | 8.31% | 7.93% | 7.64% | 7.46% | 7.45% | 7.42% | 7.38% | 7.42% | 7.61% | 7.53% | 7.32% | 6.99% | 6.61% | 6.47% | 6.05% |
| Operating profit margin | 4.53% | 4.29% | 4.26% | 4.40% | 4.45% | 4.36% | 4.17% | 3.97% | 3.90% | 3.86% | 3.76% | 3.65% | 3.73% | 4.03% | 3.98% | 3.82% | 3.39% | 2.93% | 2.77% | 2.31% |
| Pretax margin | 3.96% | 3.37% | 3.37% | 3.48% | 3.52% | 3.67% | 3.44% | 3.23% | 3.21% | 3.25% | 3.31% | 3.86% | 4.02% | 4.35% | 4.29% | 3.47% | 2.96% | 2.13% | 1.78% | 0.70% |
| Net profit margin | 3.25% | 3.95% | 3.62% | 3.54% | 3.58% | 2.56% | 2.62% | 2.60% | 2.61% | 2.76% | 2.85% | 3.40% | 3.60% | 3.96% | 3.87% | 3.03% | 2.54% | 1.80% | 1.41% | 0.41% |
Flex Ltd's profitability ratios have shown a mixed trend over the period analyzed. The Gross Profit Margin has steadily increased from 6.05% in June 2020 to 8.36% in March 2025, indicating the company's ability to generate profit from its core operations.
The Operating Profit Margin has also shown an increasing trend, starting at 2.31% in June 2020 and reaching 4.53% in March 2025. This indicates that Flex Ltd has been able to control its operating expenses effectively while generating higher profits.
The Pretax Margin fluctuated during the period, starting at 0.70% in June 2020, peaking at 4.35% in December 2021, and then declining to 3.96% in March 2025. This indicates variability in the company's ability to generate profit before accounting for taxes.
The Net Profit Margin has shown some fluctuations as well, starting at 0.41% in June 2020, reaching 3.96% in December 2021, and then declining to 3.25% in March 2025. This ratio indicates the company's overall profitability after all expenses, including taxes, have been accounted for.
Overall, Flex Ltd's profitability ratios demonstrate improvements in gross and operating margins over the period, but some fluctuations in pretax and net profit margins suggest potential challenges in maintaining consistent profitability levels. Further analysis of the company's financial performance and operational efficiency may provide deeper insights into the factors driving these trends.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.36% | 6.01% | 5.98% | 6.71% | 6.84% | 6.29% | 5.98% | 5.75% | 5.53% | 5.49% | 5.22% | 4.93% | 5.02% | 5.65% | 6.09% | 5.97% | 5.17% | 4.37% | 4.27% | 3.79% |
| Return on assets (ROA) | 4.56% | 5.53% | 5.08% | 5.41% | 5.51% | 3.70% | 3.75% | 3.77% | 3.71% | 3.92% | 3.96% | 4.59% | 4.85% | 5.55% | 5.92% | 4.74% | 3.87% | 2.69% | 2.16% | 0.67% |
| Return on total capital | 17.65% | 21.07% | 21.25% | 20.06% | 19.77% | 19.16% | 18.96% | 19.85% | 19.85% | 23.13% | 23.13% | 24.49% | 23.78% | 28.43% | 29.74% | 28.11% | 25.12% | 16.81% | 16.75% | 14.48% |
| Return on equity (ROE) | 16.75% | 20.25% | 18.89% | 19.20% | 18.89% | 12.62% | 13.31% | 14.61% | 14.82% | 18.18% | 19.52% | 22.49% | 22.69% | 27.61% | 28.17% | 21.86% | 17.84% | 12.45% | 10.42% | 3.22% |
Flex Ltd's profitability ratios have shown a mixed performance over the past few years.
1. Operating Return on Assets (Operating ROA) has generally been on an upward trend, increasing from 3.79% as of June 30, 2020, to 6.01% as of December 31, 2024. The ratio peaked at 6.84% as of March 31, 2024, before slightly declining.
2. Return on Assets (ROA) has displayed some fluctuations, with an upward trend in the initial years followed by some variability. The ratio reached its highest point of 5.92% as of September 30, 2021, but dipped to 3.70% by December 31, 2023, before recovering to 4.56% as of March 31, 2025.
3. Return on Total Capital has shown variability over the years, with an initial increase up to 29.74% as of September 30, 2021, before fluctuating around the 20% level in the subsequent periods.
4. Return on Equity (ROE) has largely followed a similar pattern to the ROA ratios, displaying an upward trend initially and then some fluctuations. The ratio peaked at 28.17% as of September 30, 2021, before gradually declining to 16.75% by March 31, 2025.
Overall, Flex Ltd's profitability ratios indicate a generally positive trend in operational efficiency and effectiveness in generating returns for the company's shareholders. However, there are fluctuations in performance over the periods, suggesting a need for continued monitoring and analysis to maintain and enhance profitability.