Flex Ltd (FLEX)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,601,000 | 2,243,000 | 2,474,000 | 2,764,000 | 2,900,000 | 2,660,000 | 3,164,000 | 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 | 1,923,000 | 1,789,160 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | 130,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,502,000 | 2,952,000 | 3,033,000 | 3,605,000 | 3,801,000 | 3,764,000 | 3,739,000 | 3,939,000 | 3,956,000 | — | 3,371,000 | 3,493,000 | — | — | 4,106,000 | 4,070,000 | 3,804,000 | 3,280,840 | 2,435,980 | 3,004,170 |
| 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 |
| Quick ratio | 0.66 | 0.58 | 0.64 | 0.68 | 0.66 | 0.60 | 0.65 | 0.56 | 0.53 | 0.23 | 0.59 | 0.63 | 0.28 | 0.33 | 0.86 | 0.89 | 0.86 | 0.77 | 0.60 | 0.63 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,601,000K
+ $—K
+ $3,502,000K)
÷ $9,306,000K
= 0.66
The quick ratio of Flex Ltd has exhibited some fluctuation over the past few quarters, ranging from a low of 0.23 to a high of 0.89. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities without selling inventory or obtaining additional financing.
Flex Ltd's quick ratio has generally been below 1, which may signal some potential liquidity concerns. The ratio has shown improvement in recent quarters, reaching its highest point at 0.89 in the most recent period. However, the quick ratio has also experienced significant declines, such as dropping to 0.23 in a previous quarter, which could indicate periods of financial stress or difficulty in managing short-term obligations.
Overall, Flex Ltd's quick ratio analysis suggests that the company should continue monitoring its liquidity position and working towards maintaining a healthy balance between current assets and liabilities to ensure financial stability and the ability to meet its short-term financial obligations efficiently.
Peer comparison
Sep 30, 2024