Flex Ltd (FLEX)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 838,000 | 1,011,000 | 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 | 421,079 | 324,467 | 94,527 |
| Total stockholders’ equity | US$ in thousands | 5,002,000 | 4,992,000 | 5,003,000 | 4,996,000 | 5,325,000 | 5,965,000 | 5,906,000 | 5,406,000 | 5,351,000 | 4,505,000 | 4,180,000 | 4,091,000 | 4,129,000 | 3,655,000 | 3,514,000 | 3,508,000 | 3,436,000 | 3,381,000 | 3,115,000 | 2,939,600 |
| 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% |
March 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $838,000K ÷ $5,002,000K
= 16.75%
Flex Ltd's return on equity (ROE) has shown a fluctuating trend over the past few years. The ROE started at a low of 3.22% as of June 30, 2020, then experienced a steady increase reaching its peak at 28.17% on September 30, 2021. This significant improvement in ROE indicates that the company was able to generate more profits relative to the shareholders' equity during this period.
However, after the peak in September 2021, the ROE exhibited a declining trend, falling to 12.62% by December 31, 2023. This decline may suggest challenges faced by the company in maintaining or increasing profitability compared to the equity invested in the business.
Subsequently, there was a recovery in ROE, with figures improving to around 20% from December 31, 2024, until March 31, 2025. This recovery could be indicative of successful strategic initiatives or operational improvements that enhanced the company's profitability relative to its equity base during this period.
Overall, the fluctuating trend of Flex Ltd's ROE highlights the importance of consistent monitoring and analysis of financial performance to identify trends and make informed decisions regarding the company's financial health and strategic direction.
Peer comparison
Mar 31, 2025