Flex Ltd (FLEX)

Days of sales outstanding (DSO)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Receivables turnover		7.03	8.05	7.66	6.33	5.69
DSO	days	51.91	45.35	47.68	57.64	64.17

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.03
= 51.91

Flex Ltd's days of sales outstanding (DSO) has shown a decreasing trend over the past five years. In March 31, 2021, the DSO stood at 64.17 days, decreased to 57.64 days in March 31, 2022, and further decreased to 47.68 days in March 31, 2023. By March 31, 2024, Flex Ltd's DSO dropped to 45.35 days, reflecting a more efficient collection of receivables. However, by March 31, 2025, the DSO increased slightly to 51.91 days, indicating a potential slowdown in collecting accounts receivable compared to the previous year. Overall, the company has successfully managed its accounts receivable turnover, but it may be worth investigating the reason for the slight increase in DSO in the most recent year to ensure efficient cash flow management.