Flex Ltd (FLEX)
Number of days of payables
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.74 | 5.11 | 4.02 | 4.46 | 4.70 | |
| Number of days of payables | days | 63.54 | 71.43 | 90.79 | 81.80 | 77.67 |
March 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.74
= 63.54
Flex Ltd's number of days of payables have fluctuated over the past five years. As of March 31, 2024, the company's number of days of payables was 63.54 days, showing an improvement compared to the previous year where it was 71.43 days. This means that Flex Ltd takes approximately 63.54 days to pay off its accounts payable obligations on average.
The decreasing trend in the number of days of payables could indicate that the company is managing its payables more efficiently and possibly negotiating better payment terms with its suppliers. This can help improve the company's working capital management and cash flow position.
It is important to continue monitoring this ratio to ensure that the company maintains a balance between managing its payables effectively while also preserving relationships with suppliers. A lower number of days of payables may indicate better liquidity but could also suggest challenges in meeting payment obligations promptly.
Peer comparison
Mar 31, 2024