Flex Ltd (FLEX)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,178,000 | 2,672,000 | 3,261,000 | 3,431,000 | 3,412,000 | 3,444,000 | 3,544,000 | 3,522,000 | 3,081,000 | 3,129,000 | 3,248,000 | 3,798,000 | 3,501,000 | 3,505,000 | 3,515,000 | 3,740,000 | 3,739,000 | 3,423,160 | 2,689,000 | 2,701,110 |
| Total assets | US$ in thousands | 18,586,000 | 17,737,000 | 18,257,000 | 20,366,000 | 20,968,000 | 20,936,000 | 21,407,000 | 20,892,000 | 20,623,000 | 20,054,000 | 19,325,000 | 18,175,000 | 16,711,000 | 16,192,000 | 15,836,000 | 15,668,000 | 15,001,000 | 14,133,100 | 13,690,000 | 14,135,400 |
| Debt-to-assets ratio | 0.17 | 0.15 | 0.18 | 0.17 | 0.16 | 0.16 | 0.17 | 0.17 | 0.15 | 0.16 | 0.17 | 0.21 | 0.21 | 0.22 | 0.22 | 0.24 | 0.25 | 0.24 | 0.20 | 0.19 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,178,000K ÷ $18,586,000K
= 0.17
The debt-to-assets ratio of Flex Ltd has shown some fluctuations over the past several quarters. As of September 30, 2024, the company's debt-to-assets ratio stands at 0.17, indicating that 17% of the company's assets are financed through debt. This ratio has remained relatively stable around the 0.16 to 0.18 range for the past few quarters.
Looking at the trend over the past few years, we can observe that the debt-to-assets ratio increased from 0.19 in March 2020 to a peak of 0.25 in March 2021, before gradually declining to the current level. This suggests that Flex Ltd has been managing its debt levels relative to its asset base, although there was a significant spike in debt relative to assets in 2021.
Overall, a debt-to-assets ratio of 0.17 as of September 30, 2024, indicates that Flex Ltd relies moderately on debt to finance its operations and investments, maintaining a relatively stable position in recent quarters after the peak in 2021. It is important for investors and stakeholders to continue monitoring the company's debt management practices and financial health to ensure sustainable growth and financial stability in the future.
Peer comparison
Sep 30, 2024