Flex Ltd (FLEX)

Receivables 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
Revenue (ttm) US$ in thousands 25,813,000 25,584,000 26,131,000 27,057,000 28,079,000 29,387,000 30,040,000 30,335,000 30,346,000 29,720,000 28,583,000 27,046,000 26,041,000 25,456,000 25,557,000 25,313,000 24,124,330 23,342,820 23,084,210 23,187,260
Receivables US$ in thousands 3,671,000 4,015,000 4,097,000 3,409,000 3,282,000 4,209,000 4,378,000 4,352,000 4,280,000 4,453,000 4,487,000 4,292,000 3,890,000 3,883,000 3,897,000 4,001,000 4,241,000 4,191,000 3,985,000 3,587,040
Receivables turnover 7.03 6.37 6.38 7.94 8.56 6.98 6.86 6.97 7.09 6.67 6.37 6.30 6.69 6.56 6.56 6.33 5.69 5.57 5.79 6.46

March 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $25,813,000K ÷ $3,671,000K
= 7.03

Flex Ltd's receivables turnover has fluctuated over the past few years, ranging from a low of 5.57 in December 2020 to a high of 8.56 in March 2024. The trend overall shows some variability, but with a general increasing pattern. This indicates that the company has been able to collect its accounts receivable more efficiently over time.

The average receivables turnover for the period analyzed is around 6.65, with the latest figure reported at 7.03 as of March 31, 2025. A higher receivables turnover ratio suggests that Flex Ltd is converting its accounts receivable into cash more rapidly, which may indicate strong sales performance, efficient credit management, or effective collection strategies.

Investors and stakeholders may view an increasing receivables turnover ratio positively, as it implies that the company is effectively managing its receivables and maintaining a healthy cash flow. However, it is essential to monitor this ratio over time to ensure sustainability and effectiveness in managing working capital.