Flex Ltd (FLEX)
Receivables turnover
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,813,000 | 26,415,000 | 28,502,000 | 24,633,000 | 24,124,000 |
| Receivables | US$ in thousands | 3,671,000 | 3,282,000 | 3,723,000 | 3,890,000 | 4,241,000 |
| Receivables turnover | 7.03 | 8.05 | 7.66 | 6.33 | 5.69 |
March 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $25,813,000K ÷ $3,671,000K
= 7.03
Based on the data provided, the receivables turnover of Flex Ltd has shown a generally increasing trend over the past five years.
In March 2021, the receivables turnover ratio was 5.69, indicating that the company collected its accounts receivable approximately 5.69 times during that year. This ratio increased to 6.33 in March 2022, signifying an improvement in the collection efficiency.
Further improvement was seen in March 2023, with the receivables turnover ratio reaching 7.66, and continuing to rise to 8.05 in March 2024. This suggests that Flex Ltd has been able to more efficiently collect its outstanding receivables over these years.
However, there was a slight decrease in the receivables turnover ratio to 7.03 in March 2025. Despite this decrease, the ratio is still higher compared to the earlier years, indicating that Flex Ltd continues to manage its accounts receivable effectively.
Overall, the increasing trend in the receivables turnover ratio reflects positively on the company's ability to collect payments from customers in a timely manner, which is crucial for maintaining healthy cash flow and financial stability.
Peer comparison
Mar 31, 2025