Flex Ltd (FLEX)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	2,474,000	3,164,000	2,964,000	2,637,000	1,923,000
Short-term investments	US$ in thousands	—	130,000	—	—	—
Total current liabilities	US$ in thousands	8,539,000	10,867,000	10,711,000	7,834,000	7,211,000
Cash ratio		0.29	0.30	0.28	0.34	0.27

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,474,000K + $—K) ÷ $8,539,000K
= 0.29

The cash ratio of Flex Ltd has shown some fluctuations over the past five years. The ratio measures the company's ability to cover its short-term obligations with cash and cash equivalents.

In Mar 31, 2024, the cash ratio of 0.29 indicates that for every $1 of current liabilities, Flex Ltd had $0.29 of cash and cash equivalents on hand. This implies that the company may have had a slightly lower liquidity position compared to the previous year.

Over the past five years, the cash ratio has ranged from 0.27 to 0.34, showing some variability. A higher cash ratio suggests that the company has a stronger ability to meet its short-term obligations without relying on external financing or liquidating other assets.

It is essential for investors and stakeholders to monitor the trend of the cash ratio over time to assess Flex Ltd's liquidity position and overall financial health.