Flex Ltd (FLEX)
Quick ratio
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,289,000 | 2,313,000 | 2,601,000 | 2,243,000 | 2,474,000 | 2,764,000 | 2,900,000 | 2,660,000 | 3,294,000 | 2,565,000 | 2,453,000 | 2,647,000 | 2,964,000 | 2,574,000 | 2,458,000 | 2,693,000 | 2,637,000 | 2,611,000 | 2,359,000 | 1,935,080 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,671,000 | 4,015,000 | 4,097,000 | 3,409,000 | 3,282,000 | 4,209,000 | 4,378,000 | 4,352,000 | 4,280,000 | 4,453,000 | 4,487,000 | 4,292,000 | 3,890,000 | 3,883,000 | 3,897,000 | 4,001,000 | 4,241,000 | 4,191,000 | 3,985,000 | 3,587,040 |
| Total current liabilities | US$ in thousands | 9,850,000 | 9,037,000 | 9,306,000 | 8,969,000 | 8,539,000 | 9,386,000 | 10,106,000 | 10,638,000 | 10,855,000 | 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 |
| Quick ratio | 0.61 | 0.70 | 0.72 | 0.63 | 0.67 | 0.74 | 0.72 | 0.66 | 0.70 | 0.60 | 0.57 | 0.60 | 0.64 | 0.67 | 0.73 | 0.82 | 0.88 | 0.90 | 0.89 | 0.81 |
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
Flex Ltd's quick ratio has been fluctuating over the past few years, ranging from 0.57 to 0.90. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 typically indicates that the company may have difficulty meeting its short-term liabilities.
Analyzing Flex Ltd's quick ratio trend, we observe a general declining pattern from 0.81 in June 2020 to 0.61 in March 2025. This downward trend implies that the company may be experiencing challenges in maintaining an adequate level of liquid assets relative to its current liabilities.
A quick ratio of less than 1.0 in most periods suggests that Flex Ltd may be relying more on its current assets other than inventory to meet its short-term liabilities. Investors and creditors may view a declining quick ratio as a potential red flag, indicating a decreasing ability to cover short-term obligations without relying on inventory.
Overall, the analysis of Flex Ltd's quick ratio indicates a need for the company to closely monitor its liquidity position and ensure it has sufficient cash and near-cash assets to meet its short-term obligations effectively.
Peer comparison
Mar 31, 2025