Flex Ltd (FLEX)

Days of sales outstanding (DSO)

		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
Receivables turnover		7.03	6.37	6.38	7.94	8.56	6.98	6.86	6.97	7.09	6.67	6.37	6.30	6.69	6.56	6.56	6.33	5.69	5.57	5.79	6.46
DSO	days	51.91	57.28	57.23	45.99	42.66	52.28	53.19	52.36	51.48	54.69	57.30	57.92	54.52	55.68	55.66	57.69	64.17	65.53	63.01	56.47

March 31, 2025 calculation

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

Flex Ltd's days of sales outstanding (DSO) has shown some fluctuations over the years, ranging from a low of 42.66 days on March 31, 2024, to a high of 65.53 days on December 31, 2020. Generally, the trend indicates a pattern of variability rather than a consistent increase or decrease in DSO.

The DSO figures suggest that Flex Ltd's accounts receivable turnover rate has been changing periodically. A lower DSO indicates that the company is collecting payments from customers more quickly, which may be a positive sign of efficiency in managing accounts receivable. Conversely, a higher DSO could imply that it takes longer for Flex Ltd to collect outstanding receivables, which might be a concern for cash flow management.

In the most recent period, the DSO stood at 51.91 days on March 31, 2025, showing an improvement from the previous quarter. This decrease could indicate that Flex Ltd has been more effective in managing its collections process, potentially leading to better cash flow and operational performance.

Monitoring trends in DSO over time can provide valuable insights into the company's credit policies, customer payment behavior, and overall financial health. It is essential for Flex Ltd to continue monitoring and managing its DSO to ensure optimal efficiency in accounts receivable management and sustainable business operations.