Flex Ltd (FLEX)

Days of inventory on hand (DOH)

		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
Inventory turnover		4.66	4.45	4.39	4.24	4.14	3.95	3.86	3.72	3.73	3.51	3.42	3.46	3.66	3.95	4.57	5.28	5.76	5.89	5.98	6.29
DOH	days	78.25	81.93	83.21	86.05	88.21	92.34	94.60	98.04	97.88	104.01	106.57	105.54	99.62	92.46	79.82	69.14	63.36	61.93	61.05	58.06

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.66
= 78.25

Flex Ltd has seen fluctuations in its days of inventory on hand (DOH) over the past few years, with a general increasing trend since June 30, 2020. The DOH increased from 58.06 days on June 30, 2020, reaching its peak at 106.57 days on September 30, 2022, before gradually decreasing to 78.25 days on March 31, 2025.

The rising trend in DOH indicates that Flex Ltd may be holding onto inventory for a longer period, which could tie up working capital and potentially lead to increased carrying costs. A high DOH may also signal inefficiencies in inventory management, such as overstocking or slow-moving inventory.

Conversely, the recent decrease in DOH suggests that Flex Ltd may be improving its inventory management practices to reduce excess inventory levels and improve the efficiency of its supply chain.

Overall, while fluctuations in DOH are normal for companies operating in dynamic industries like manufacturing, it is essential for Flex Ltd to closely monitor and optimize its inventory levels to strike a balance between meeting customer demand and managing costs effectively.