Flex Ltd (FLEX)
Current ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 12,841,000 | 12,992,000 | 16,033,000 | 14,337,000 | 11,363,000 |
| Total current liabilities | US$ in thousands | 9,850,000 | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 |
| Current ratio | 1.30 | 1.52 | 1.48 | 1.34 | 1.45 |
March 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $12,841,000K ÷ $9,850,000K
= 1.30
Flex Ltd's current ratio has been fluctuating over the past five years. As of March 31, 2021, the current ratio stood at 1.45, indicating that the company had $1.45 in current assets for every $1 in current liabilities. The ratio declined to 1.34 by March 31, 2022, suggesting a potential strain on short-term liquidity.
However, there was an improvement in the current ratio in the subsequent years. By March 31, 2023, the ratio increased to 1.48, signaling a better liquidity position for the company. This positive trend continued as of March 31, 2024, with the current ratio reaching 1.52, indicating an even stronger ability to meet short-term obligations.
Unfortunately, the current ratio dropped to 1.30 by March 31, 2025, which may raise concerns about the company's ability to cover its short-term liabilities with its current assets. Overall, while there have been fluctuations in Flex Ltd's current ratio, the recent decline in the ratio highlights the importance of monitoring liquidity levels to ensure financial stability.
Peer comparison
Mar 31, 2025