Flex Ltd (FLEX)

Cash ratio

		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	Mar 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,601,000	2,243,000	2,474,000	2,764,000	2,900,000	2,660,000	3,164,000	2,565,000	2,453,000	2,647,000	2,964,000	2,574,000	2,458,000	2,693,000	2,637,000	2,611,000	2,359,000	1,935,080	1,923,000	1,789,160
Short-term investments	US$ in thousands	—	—	—	—	—	—	130,000	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	9,306,000	8,969,000	8,539,000	9,386,000	10,106,000	10,638,000	10,867,000	11,668,000	12,146,000	11,590,000	10,711,000	9,642,000	8,688,000	8,138,000	7,834,000	7,519,000	7,157,000	6,795,250	7,211,000	7,550,950
Cash ratio		0.28	0.25	0.29	0.29	0.29	0.25	0.30	0.22	0.20	0.23	0.28	0.27	0.28	0.33	0.34	0.35	0.33	0.28	0.27	0.24

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,601,000K + $—K) ÷ $9,306,000K
= 0.28

Flex Ltd's cash ratio has fluctuated over the past several periods, ranging from 0.20 to 0.35. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents.

Looking at the trend, there is some variability in the cash ratio, with slight increases and decreases observed over the periods. The company's cash ratio was at its lowest in the earlier periods around 0.20 to 0.25, indicating a lower ability to cover short-term obligations with cash on hand. However, there was a noticeable improvement in the latter periods where the cash ratio increased to around 0.30 to 0.35, reflecting a stronger liquidity position.

Overall, Flex Ltd's cash ratio has shown some improvement in recent periods, suggesting a better capacity to meet short-term obligations with its available cash resources. This trend indicates a positive liquidity position for the company, which could be favorable for its financial stability and ability to navigate potential cash flow challenges.