Flex Ltd (FLEX)
Quick ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,289,000 | 2,474,000 | 3,164,000 | 2,964,000 | 2,637,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 3,671,000 | 3,282,000 | 3,723,000 | 3,890,000 | 4,241,000 |
| Total current liabilities | US$ in thousands | 9,850,000 | 8,539,000 | 10,867,000 | 10,711,000 | 7,834,000 |
| Quick ratio | 0.61 | 0.67 | 0.63 | 0.64 | 0.88 |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,289,000K
+ $—K
+ $3,671,000K)
÷ $9,850,000K
= 0.61
The quick ratio of Flex Ltd has shown a slight decline over the past five years, decreasing from 0.88 as of March 31, 2021, to 0.61 as of March 31, 2025. This indicates a lower level of liquidity in the company as time has progressed.
A quick ratio below 1.0 suggests that Flex Ltd may have difficulties meeting its short-term obligations using its most liquid assets. It appears that the company may have a higher proportion of current liabilities relative to its quick assets such as cash and accounts receivable.
It would be advisable for Flex Ltd to monitor its liquidity position closely and consider strategies to improve its quick ratio, such as increasing cash reserves or managing its current liabilities more effectively, to ensure that it can meet its financial obligations in a timely manner.
Peer comparison
Mar 31, 2025