Flex Ltd (FLEX)

Days of inventory on hand (DOH)

		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
Inventory turnover		4.36	4.23	4.14	4.14	4.03	3.88	3.96	3.65	3.57	3.61	3.82	4.11	4.76	5.50	6.01	6.19	6.28	6.60	6.34	6.75
DOH	days	83.63	86.27	88.24	88.21	90.59	94.01	92.20	99.87	102.24	101.19	95.54	88.83	76.63	66.36	60.73	58.93	58.12	55.28	57.56	54.07

September 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.36
= 83.63

The days of inventory on hand (DOH) for Flex Ltd have shown a fluctuating trend over the past few years. From December 2019 to September 2024, the DOH figures have ranged from a low of 54.07 days to a high of 102.24 days.

The trend indicates that the company has been able to manage its inventory levels relatively efficiently, as there have been periods of decreasing DOH figures interspersed with slight increases. A lower DOH figure suggests that the company is selling its inventory more quickly, while a higher DOH figure may indicate that inventory turnover is slower.

It is worth noting that the DOH increased significantly in the most recent quarters compared to the previous periods, reaching a peak of 102.24 days in September 2022. This could be a potential area of concern as higher DOH may tie up working capital and indicate inefficiencies in inventory management.

Overall, monitoring the trend of days of inventory on hand can provide insights into Flex Ltd's inventory management efficiency, working capital requirements, and potential operational challenges.