Flex Ltd (FLEX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 883,000 | 1,052,000 | 1,063,000 | 1,002,000 | 1,053,000 | 1,143,000 | 1,120,000 | 1,073,000 | 1,062,000 | 1,042,000 | 967,000 | 1,002,000 | 982,000 | 1,039,000 | 1,045,000 | 986,215 | 863,187 | 568,396 | 521,820 | 425,585 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 17.65% | 21.07% | 21.25% | 20.06% | 19.77% | 19.16% | 18.96% | 19.85% | 19.85% | 23.13% | 23.13% | 24.49% | 23.78% | 28.43% | 29.74% | 28.11% | 25.12% | 16.81% | 16.75% | 14.48% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $883,000K ÷ ($—K + $5,002,000K)
= 17.65%
Flex Ltd's return on total capital has shown a fluctuating trend over the period from June 30, 2020, to March 31, 2025. The return on total capital started at 14.48% on June 30, 2020, increased gradually, reaching a peak of 29.74% on September 30, 2021. However, there was a slight decline in the following quarters. By March 31, 2024, the return on total capital was at 19.77%, showing a decrease from the peak levels.
Subsequently, there was an increase in the return on total capital to 21.25% on September 30, 2024, followed by a slight decrease to 17.65% on March 31, 2025. Overall, the return on total capital exhibited variability over the analyzed period, indicating changes in the efficiency and effectiveness of Flex Ltd in generating returns from its invested capital. Monitoring this metric closely can provide insights into the company's financial performance and capital management strategies.
Peer comparison
Mar 31, 2025