Flex Ltd (FLEX)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,241,000 | 1,053,000 | 1,044,000 | 1,106,000 | 386,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,002,000 | 5,325,000 | 5,351,000 | 4,129,000 | 3,436,000 |
| Return on total capital | 24.81% | 19.77% | 19.51% | 26.79% | 11.23% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,241,000K ÷ ($—K + $5,002,000K)
= 24.81%
Flex Ltd's return on total capital has shown a varying trend over the five-year period from March 31, 2021, to March 31, 2025. The ratio increased significantly from 11.23% in March 2021 to 26.79% in March 2022, indicating a notable improvement in the company's ability to generate profits relative to the total capital employed.
Although there was a decrease in the return on total capital to 19.51% in March 2023, it remained above the initial value, suggesting continued efficiency in capital utilization. The ratio further increased to 19.77% in March 2024, reflecting a stable performance in generating returns on total capital.
Flex Ltd experienced a notable improvement in its return on total capital in March 2025, reaching 24.81%. This indicates a strong performance in generating profits relative to the total capital invested, showcasing the company's effective management of its resources.
Overall, Flex Ltd's return on total capital exhibited fluctuations over the five-year period, with periods of growth and stability. The company's ability to achieve higher returns on its total capital demonstrates efficiency and effectiveness in utilizing its resources to generate profits.
Peer comparison
Mar 31, 2025