Flex Ltd (FLEX)
Cash ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,289,000 | 2,474,000 | 3,164,000 | 2,964,000 | 2,637,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 9,850,000 | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 |
| Cash ratio | 0.23 | 0.29 | 0.29 | 0.28 | 0.34 |
March 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,289,000K
+ $—K)
÷ $9,850,000K
= 0.23
The cash ratio of Flex Ltd has shown a slight decline over the past five years, from 0.34 on March 31, 2021, to 0.23 on March 31, 2025. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio below 1 may suggest that the company may have difficulty meeting its current obligations solely with its available cash.
Flex Ltd's decreasing cash ratio may raise concerns about its liquidity position, as it indicates a decreasing ability to meet its short-term obligations with its cash holdings alone. It would be important for stakeholders and investors to monitor this trend closely to ensure that the company maintains a healthy liquidity position to meet its financial obligations in the future.
Peer comparison
Mar 31, 2025