Flex Ltd (FLEX)

Days of sales outstanding (DSO)

		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
Receivables turnover		7.45	9.14	9.22	8.10	7.86	8.01	8.06	7.51	7.19	—	7.69	7.26	—	—	5.86	5.72	6.06	7.06	9.92	8.29
DSO	days	48.98	39.93	39.58	45.04	46.47	45.58	45.27	48.61	50.75	—	47.46	50.31	—	—	62.31	63.84	60.24	51.73	36.78	44.01

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.45
= 48.98

Based on the data provided, Flex Ltd's Days Sales Outstanding (DSO) has been relatively stable over the past quarters, with some fluctuations noted. The DSO measures how efficiently the company is able to collect its accounts receivable.

In the most recent quarter, the DSO was 48.98 days, indicating that on average, it takes Flex Ltd approximately 48.98 days to collect its accounts receivable. This is an increase from the prior quarter's DSO of 39.93 days, suggesting a potential delay in collecting payments from customers.

Looking at the trend over the past few quarters, there was a slight increase in DSO from the Dec 31, 2023, quarter to the Sep 30, 2024, quarter, indicating a potential challenge in managing accounts receivable efficiency during that period.

It is important for Flex Ltd to monitor and manage its DSO effectively to ensure timely cash flow and efficient operations. A high DSO can tie up working capital and indicate potential issues with credit policies or collection processes. On the other hand, a low DSO may signal overly aggressive credit policies that could result in higher bad debt expenses. Monitoring and analyzing DSO trends can help the company optimize its accounts receivable management and improve overall financial performance.