Flex Ltd (FLEX)

Return on equity (ROE)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	US$ in thousands	1,006,000	793,000	936,000	613,000	88,000
Total stockholders’ equity	US$ in thousands	5,325,000	5,351,000	4,129,000	3,436,000	2,831,000
ROE		18.89%	14.82%	22.67%	17.84%	3.11%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,006,000K ÷ $5,325,000K
= 18.89%

Flex Ltd's Return on Equity (ROE) has shown fluctuations over the past five years. In the most recent fiscal year ending March 31, 2024, Flex Ltd achieved an ROE of 18.89%, showing an improvement compared to the previous year's ROE of 14.82%.

Looking further back, the ROE was highest in the fiscal year ending March 31, 2022, at 22.67%. This signifies that the company was able to generate more profit relative to shareholder equity in that particular year. In contrast, the ROE dropped in the fiscal year ending March 31, 2021, to 17.84%, before significantly increasing to 22.67% in the subsequent year.

The significant rise in ROE from 3.11% in the fiscal year ending March 31, 2020, to 22.67% in the following year indicates an improvement in the company's profitability and efficiency in utilizing shareholder equity to generate returns.

Overall, Flex Ltd's ROE has shown variability over the years, with the most recent year reflecting a strong ROE performance compared to the previous periods. It is essential for stakeholders to monitor ROE trends over time to assess the company's profitability and its ability to generate returns for shareholders.