Flex Ltd (FLEX)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,261,000 | 3,544,000 | 3,248,000 | 3,515,000 | 2,689,000 |
| Total assets | US$ in thousands | 18,257,000 | 21,407,000 | 19,325,000 | 15,836,000 | 13,690,000 |
| Debt-to-assets ratio | 0.18 | 0.17 | 0.17 | 0.22 | 0.20 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,261,000K ÷ $18,257,000K
= 0.18
The debt-to-assets ratio of Flex Ltd has shown some fluctuation over the past five years. As of March 31, 2024, the ratio stands at 0.18, indicating that 18% of the company's total assets are financed by debt. This represents a slight increase compared to the previous year's ratio of 0.17.
Looking back over the last five years, the ratio has ranged from 0.17 to 0.22, with the highest level observed in March 31, 2021, and the lowest level in March 31, 2023. Overall, the company has maintained a relatively conservative approach to debt financing, with the ratio consistently below 0.25, suggesting a lower level of financial risk.
A lower debt-to-assets ratio indicates that the company relies less on debt to finance its operations and investments, which can be seen as a positive sign of financial stability. However, it's essential to consider the industry norms and the company's specific circumstances when evaluating the significance of this ratio in isolation.
Peer comparison
Mar 31, 2024