Flex Ltd (FLEX)
Current ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 12,992,000 | 16,033,000 | 14,337,000 | 11,363,000 | 9,086,000 |
| Total current liabilities | US$ in thousands | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 | 7,211,000 |
| Current ratio | 1.52 | 1.48 | 1.34 | 1.45 | 1.26 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $12,992,000K ÷ $8,539,000K
= 1.52
Flex Ltd's current ratio has shown a generally positive trend over the past five years. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable.
In the most recent fiscal year ending March 31, 2024, Flex Ltd has a current ratio of 1.52, which suggests that the company is able to meet its short-term obligations comfortably with its current assets. This is an improvement compared to the previous year's ratio of 1.48, indicating a slight strengthening of the company's liquidity position.
Looking further back, the current ratio has shown variability over the past five years, ranging from 1.26 in 2020 to 1.52 in 2024. While the ratio has fluctuated, the general upward trend indicates an improvement in the company's liquidity management over time.
Overall, Flex Ltd's current ratio suggests a healthy liquidity position, with the company having a sufficient level of current assets to cover its short-term liabilities. Continued monitoring of this ratio will be important to ensure that the company maintains its ability to meet its short-term obligations effectively.
Peer comparison
Mar 31, 2024