Flex Ltd (FLEX)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		8.63	8.06	7.69	5.84	9.94
DSO	days	42.28	45.26	47.47	62.46	36.72

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.63
= 42.28

Flex Ltd's days of sales outstanding (DSO) have fluctuated over the past five years. In fiscal year 2020, the DSO was relatively low at 36.72 days, indicating that the company was able to collect its outstanding receivables efficiently. However, there was a significant increase in DSO in fiscal year 2021, reaching 62.46 days, which suggests that the company was taking longer to collect payments from customers.

In the following years, Flex Ltd made improvements in its collection processes as indicated by the declining trend in DSO. By fiscal year 2024, the DSO had decreased to 42.28 days, demonstrating that the company was becoming more effective in converting its accounts receivable into cash.

Overall, Flex Ltd has shown a mix of efficient and less efficient collection periods in the past five years, but the recent improvement in DSO reflects a positive trend in the company's management of its accounts receivable. Monitoring and managing DSO will be crucial for Flex Ltd to maintain healthy cash flows and liquidity in the future.