Flex Ltd (FLEX)
Receivables turnover
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,184,000 | 30,152,000 | 25,920,000 | 23,995,000 | 24,212,300 |
| Receivables | US$ in thousands | 3,033,000 | 3,739,000 | 3,371,000 | 4,106,000 | 2,435,980 |
| Receivables turnover | 8.63 | 8.06 | 7.69 | 5.84 | 9.94 |
March 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $26,184,000K ÷ $3,033,000K
= 8.63
The receivables turnover ratio for Flex Ltd has shown a fluctuating trend over the past five years. In the most recent fiscal year ending March 31, 2024, the company's receivables turnover ratio was 8.63, indicating that Flex Ltd collected its accounts receivable approximately 8.63 times during the year. This represents an improvement compared to the prior year, where the ratio stood at 8.06.
Historically, the receivables turnover ratio for Flex Ltd has varied, with values ranging from 5.84 to 9.94 over the last five years. The peak in receivables turnover was observed in the fiscal year ending March 31, 2020, at 9.94, suggesting a more efficient collection of receivables at that time.
Overall, a higher receivables turnover ratio reflects better efficiency in collecting payments from customers and converting credit sales into cash. The increasing trend in the recent years indicates potential improvements in the company's credit and collection policies or operation effectiveness. However, further analysis of the company's receivables management practices and industry benchmarks would provide more insights into its performance in this area.
Peer comparison
Mar 31, 2024