Flex Ltd (FLEX)
Payables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 25,668,000 | 29,249,000 | 25,144,000 | 23,411,500 | 24,003,000 |
| Payables | US$ in thousands | 4,468,000 | 5,724,000 | 6,254,000 | 5,247,000 | 5,108,000 |
| Payables turnover | 5.74 | 5.11 | 4.02 | 4.46 | 4.70 |
March 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $25,668,000K ÷ $4,468,000K
= 5.74
Flex Ltd's payables turnover has shown a generally increasing trend over the past five years, rising from 4.70 in 2020 to 5.74 in 2024. This indicates that the company is paying off its trade payables more frequently each year. A higher payables turnover ratio suggests that Flex Ltd is managing its accounts payable efficiently by paying suppliers more promptly. This may lead to stronger supplier relationships and potentially allow the company to negotiate favorable payment terms in the future. Overall, the upward trend in payables turnover reflects positively on Flex Ltd's liquidity management and operational efficiency.
Peer comparison
Mar 31, 2024