Flex Ltd (FLEX)
Payables turnover
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 23,654,000 | 23,477,000 | 23,976,000 | 24,768,000 | 25,674,000 | 26,937,000 | 27,649,000 | 28,018,000 | 28,081,000 | 27,506,000 | 26,461,000 | 25,050,000 | 24,109,000 | 23,520,000 | 23,633,000 | 23,459,000 | 22,437,780 | 21,799,640 | 21,589,550 | 21,898,510 |
| Payables | US$ in thousands | 5,147,000 | 5,033,000 | 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 |
| Payables turnover | 4.60 | 4.66 | 4.66 | 5.24 | 5.75 | 5.09 | 4.83 | 4.76 | 4.91 | 4.15 | 3.88 | 3.74 | 3.85 | 3.93 | 4.04 | 4.31 | 4.28 | 4.23 | 4.28 | 4.77 |
March 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $23,654,000K ÷ $5,147,000K
= 4.60
Flex Ltd's payables turnover has shown fluctuations over the past few years, ranging from a low of 3.74 on June 30, 2022, to a high of 5.75 on March 31, 2024. The payables turnover ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times per year that payables are paid off.
A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which could indicate good liquidity and strong vendor relationships. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could strain relationships or indicate potential cash flow issues.
Flex Ltd's payables turnover ratio has generally been above 4, indicating that the company is effectively managing its accounts payable. The slight fluctuations in the ratio may be influenced by various factors such as changes in payment terms with suppliers, seasonal variations in business activity, or shifts in the company's purchasing practices.
Overall, monitoring the payables turnover ratio over time can provide insights into the efficiency of Flex Ltd's working capital management and its relationships with suppliers.
Peer comparison
Mar 31, 2025