Flex Ltd (FLEX)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 23,857,000 | 24,704,000 | 25,668,000 | 28,198,000 | 28,873,000 | 29,219,000 | 29,249,000 | 28,645,000 | 27,583,000 | 26,125,000 | 25,137,000 | 24,482,500 | 24,614,500 | 24,441,900 | 23,410,610 | 22,910,220 | 22,675,600 | 23,000,040 | 24,003,000 | 24,872,200 |
| Payables | US$ in thousands | 5,144,000 | 4,726,000 | 4,468,000 | 5,292,000 | 5,728,000 | 5,890,000 | 5,724,000 | 6,630,000 | 6,818,000 | 6,694,000 | 6,254,000 | 5,992,000 | 5,848,000 | 5,448,000 | 5,247,000 | 5,159,000 | 5,046,000 | 4,595,410 | 5,108,000 | 5,431,310 |
| Payables turnover | 4.64 | 5.23 | 5.74 | 5.33 | 5.04 | 4.96 | 5.11 | 4.32 | 4.05 | 3.90 | 4.02 | 4.09 | 4.21 | 4.49 | 4.46 | 4.44 | 4.49 | 5.01 | 4.70 | 4.58 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $23,857,000K ÷ $5,144,000K
= 4.64
The payables turnover of Flex Ltd has shown some fluctuation over the past several quarters. The payables turnover ratio measures how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more quickly.
From the data provided, we can see that the payables turnover ratio has been fluctuating between 3.90 and 5.74 over the past few years, with some quarterly variations. In general, the trend seems to be relatively stable, with the ratio hovering around 4.5 in recent quarters.
A payables turnover ratio of around 4.5 means that Flex Ltd is paying its suppliers approximately every 80 days, which indicates a moderate efficiency in managing its accounts payable. It is important for the company to strike a balance in its payables turnover, ensuring timely payments to suppliers while also maintaining good working capital management.
Overall, the payables turnover ratio of Flex Ltd suggests that the company is fairly efficient in managing its payables, with room for improvement in optimizing payment schedules to enhance liquidity and supplier relationships.
Peer comparison
Sep 30, 2024