Flex Ltd (FLEX)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — | — | — |
| Receivables | US$ in thousands | 3,033,000 | 3,739,000 | 3,371,000 | 4,106,000 | 2,435,980 |
| Total current liabilities | US$ in thousands | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 | 7,211,000 |
| Quick ratio | 0.64 | 0.65 | 0.59 | 0.86 | 0.60 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,474,000K
+ $—K
+ $3,033,000K)
÷ $8,539,000K
= 0.64
The quick ratio of Flex Ltd has shown some fluctuations over the past five years, ranging from 0.59 to 0.86. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without relying on selling inventory.
In 2021, Flex Ltd had a relatively strong quick ratio of 0.86, suggesting a better ability to cover its short-term liabilities with its quick assets. However, this ratio decreased to 0.60 in 2020, indicating a potential strain on liquidity.
In the most recent period ending March 31, 2024, the quick ratio stands at 0.64, which is slightly lower compared to the previous year. This may indicate a decrease in the company's ability to meet its short-term obligations without relying on inventory sales. Overall, it is essential for Flex Ltd to monitor and improve its quick ratio to ensure sufficient liquidity to meet its short-term financial obligations.
Peer comparison
Mar 31, 2024