Flex Ltd (FLEX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,003,000 | 4,996,000 | 5,325,000 | 5,965,000 | 5,906,000 | 5,406,000 | 5,351,000 | 4,505,000 | 4,180,000 | 4,091,000 | 4,129,000 | 3,655,000 | 3,514,000 | 3,508,000 | 3,436,000 | 3,381,000 | 3,115,000 | 2,940,000 | 2,831,000 | 2,899,000 |
| Debt-to-capital ratio | 0.39 | 0.35 | 0.38 | 0.37 | 0.37 | 0.39 | 0.40 | 0.44 | 0.42 | 0.43 | 0.44 | 0.51 | 0.50 | 0.50 | 0.51 | 0.53 | 0.55 | 0.54 | 0.49 | 0.48 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,178,000K ÷ ($3,178,000K + $5,003,000K)
= 0.39
The debt-to-capital ratio of Flex Ltd has shown some fluctuations over the past few quarters, ranging from 0.35 to 0.55. The ratio measures the proportion of debt relative to total capital employed by the company. A higher ratio indicates a higher level of financial leverage and dependency on debt financing.
From December 2019 to March 2021, the debt-to-capital ratio increased steadily from 0.49 to 0.51, signaling a rise in debt relative to the company's capital structure. However, from March 2021 to June 2024, the ratio fluctuated between 0.35 and 0.44, indicating some variability in the company's debt levels during this period.
In general, a debt-to-capital ratio of around 0.35 to 0.55 suggests that Flex Ltd relies moderately on debt financing to support its operations and growth initiatives. It is essential for the company to manage its debt levels prudently to maintain a healthy balance between debt and equity in its capital structure. Continued monitoring of this ratio will be crucial to assess the company's financial health and risk exposure related to debt.
Peer comparison
Sep 30, 2024