Flex Ltd (FLEX)
Payables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 23,654,000 | 24,550,000 | 26,526,000 | 22,853,000 | 22,437,000 |
| Payables | US$ in thousands | 5,147,000 | 4,468,000 | 5,724,000 | 6,254,000 | 5,247,000 |
| Payables turnover | 4.60 | 5.49 | 4.63 | 3.65 | 4.28 |
March 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $23,654,000K ÷ $5,147,000K
= 4.60
To analyze the payables turnover of Flex Ltd over the years, we can see an increasing trend from March 31, 2021, to March 31, 2024, indicating that the company is effectively managing its accounts payable. The payables turnover ratio increased from 4.28 in 2021 to 5.49 in 2024, which suggests that Flex Ltd is taking fewer days to pay off its suppliers during this period.
However, in the latest year, ending March 31, 2025, the payables turnover ratio decreased to 4.60. While still relatively high, this decrease could indicate a potential lengthening of the time taken to pay suppliers compared to the previous year.
Overall, Flex Ltd has demonstrated strong efficiency in managing its payables, but close monitoring would be advisable to ensure that any changes in the payables turnover do not negatively impact the company's relationships with suppliers or its liquidity position.
Peer comparison
Mar 31, 2025