Flex Ltd (FLEX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,037,000 | 1,116,000 | 1,174,000 | 1,281,000 | 1,254,000 | 1,203,000 | 1,184,000 | 1,146,000 | 1,076,000 | 988,000 | 971,000 | 1,025,000 | 1,014,000 | 952,000 | 794,000 | 557,680 | 463,868 | 195,328 | 166,537 | 122,497 |
| Long-term debt | US$ in thousands | 3,178,000 | 2,672,000 | 3,261,000 | 3,431,000 | 3,412,000 | 3,444,000 | 3,544,000 | 3,522,000 | 3,081,000 | 3,129,000 | 3,248,000 | 3,798,000 | 3,501,000 | 3,505,000 | 3,515,000 | 3,740,000 | 3,739,000 | 3,423,160 | 2,689,000 | 2,701,110 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,940,000 | 2,831,000 | 2,899,000 |
| Return on total capital | 12.68% | 14.55% | 13.67% | 13.63% | 13.46% | 13.59% | 13.31% | 14.28% | 14.82% | 13.68% | 13.16% | 13.75% | 14.45% | 13.57% | 11.42% | 7.83% | 6.77% | 3.07% | 3.02% | 2.19% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,037,000K ÷ ($3,178,000K + $5,003,000K)
= 12.68%
Flex Ltd's return on total capital has shown fluctuations over the past several quarters. The ratio ranged from a low of 2.19% in March 2020 to a peak of 14.82% in September 2022. Despite some variability, the company has generally maintained a healthy return on total capital, indicating efficient utilization of both debt and equity to generate profits. The latest figure of 12.68% as of September 2024 suggests that Flex Ltd continues to deliver solid performance in terms of generating returns on its total invested capital. It would be important to assess the trend over the coming quarters to evaluate the sustainability of this performance.
Peer comparison
Sep 30, 2024