Flex Ltd (FLEX)

Current 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
Total current assets	US$ in thousands	13,351,000	12,548,000	12,992,000	14,877,000	15,463,000	15,540,000	16,033,000	15,819,000	15,630,000	15,147,000	14,337,000	13,213,000	12,183,000	11,729,000	11,363,000	11,111,000	10,479,000	9,562,380	9,086,000	9,360,710
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
Current ratio		1.43	1.40	1.52	1.59	1.53	1.46	1.48	1.36	1.29	1.31	1.34	1.37	1.40	1.44	1.45	1.48	1.46	1.41	1.26	1.24

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $13,351,000K ÷ $9,306,000K
= 1.43

Flex Ltd's current ratio has shown some fluctuations over the past few quarters, ranging from 1.26 to 1.59. The current ratio measures the company's ability to cover its short-term obligations with its current assets, with a higher ratio indicating stronger liquidity.

Looking at the trend, the current ratio seems to have peaked at 1.59 in December 2023, signaling a strong ability to meet short-term liabilities at that point. However, the ratio has since fluctuated downward, with the latest ratio standing at 1.43 as of September 30, 2024.

While the current ratio has remained above 1 consistently, suggesting that Flex Ltd generally has enough current assets to cover its current liabilities, it's important to closely monitor the trend to ensure the company maintains a healthy liquidity position. A ratio below 1 would indicate potential liquidity issues, while a consistently high ratio might imply inefficient use of assets.