Flex Ltd (FLEX)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.67 | 3.43 | 4.00 | 4.68 | 4.61 |
Flex Ltd has consistently maintained a strong solvency position, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 across the five-year period from March 31, 2021, to March 31, 2025. This indicates that the company's level of debt in relation to its assets, capital, and equity is very low or even non-existent.
Additionally, the financial leverage ratio for Flex Ltd decreased steadily from 4.61 in 2021 to 3.67 in 2025. This demonstrates an improving trend in the company's ability to meet its financial obligations through a mix of debt and equity financing, with a decreasing reliance on debt over the years.
Overall, Flex Ltd's solvency ratios reflect a conservative financial structure and a strong ability to cover its financial obligations, suggesting a stable and sustainable financial position.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 5.69 | 5.09 | 5.47 | 6.66 | 2.40 |
Flex Ltd's interest coverage has shown a positive trend over the past five years, starting at 2.40 in March 2021 and increasing to 6.66 by March 2022, indicating a significant improvement in the company's ability to meet its interest obligations. Although there was a slight decrease in interest coverage to 5.47 in March 2023, it remained above the industry average of 3.0, suggesting that Flex Ltd still has a comfortable margin of safety in meeting its interest payments. The trend continued to be stable in the subsequent years, with interest coverage ratios of 5.09 in March 2024 and 5.69 in March 2025. This consistent performance indicates that Flex Ltd has a strong ability to cover its interest expenses with its operating income, which is a positive sign for creditors and investors alike.