Flex Ltd (FLEX)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 945,000 | 959,000 | 1,006,000 | 753,000 | 786,000 | 790,000 | 793,000 | 819,000 | 816,000 | 920,000 | 937,000 | 1,009,000 | 990,000 | 767,000 | 612,820 | 421,500 | 324,888 | 94,948 | 88,000 | -25,431 |
| 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 |
| ROA | 5.08% | 5.41% | 5.51% | 3.70% | 3.75% | 3.77% | 3.70% | 3.92% | 3.96% | 4.59% | 4.85% | 5.55% | 5.92% | 4.74% | 3.87% | 2.69% | 2.17% | 0.67% | 0.64% | -0.18% |
September 30, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $945,000K ÷ $18,586,000K
= 5.08%
Flex Ltd's return on assets (ROA) has shown some fluctuations over the past few periods, ranging from -0.18% in December 2019 to a peak of 5.92% in March 2022. The trend seems to have been generally positive, with ROA increasing from negative values in 2019 to positive figures in recent periods.
The average ROA for the latest four quarters is around 4.67%, indicating that Flex Ltd has been able to generate approximately $0.047 in profit for every dollar of assets it holds. This suggests that the company's management is effectively utilizing its assets to generate profits, with a higher ROA being generally favorable as it signifies greater efficiency in asset utilization.
It is important to monitor ROA over time to assess the company's ability to generate earnings from its assets and to ensure continuous improvement in operational efficiency and profitability. Overall, the upward trend in ROA for Flex Ltd is a positive sign but monitoring its consistency and comparing it with industry benchmarks would provide a more comprehensive analysis of the company's performance.
Peer comparison
Sep 30, 2024