Flex Ltd (FLEX)
Debt-to-equity 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-equity ratio | 0.64 | 0.53 | 0.61 | 0.58 | 0.58 | 0.64 | 0.66 | 0.78 | 0.74 | 0.76 | 0.79 | 1.04 | 1.00 | 1.00 | 1.02 | 1.11 | 1.20 | 1.16 | 0.95 | 0.93 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,178,000K ÷ $5,003,000K
= 0.64
Flex Ltd's debt-to-equity ratio has fluctuated over the past two years, with the ratio ranging from 0.53 to 1.20. The ratio indicates the proportion of debt used to finance the company's operations compared to the equity invested by shareholders.
The trend of the debt-to-equity ratio shows that Flex Ltd has been utilizing a significant amount of debt in its capital structure. In recent quarters, the ratio has been relatively stable, hovering around 0.60-0.70 range. A ratio below 1 signifies that the company primarily relies on equity financing rather than debt, although higher ratios indicate a higher level of financial leverage.
It is important to monitor fluctuations in the debt-to-equity ratio as a high ratio can indicate higher financial risk due to the potential difficulties in servicing debt obligations. Conversely, a low ratio may indicate a more conservative financial structure. Investors and analysts should closely examine the reasons behind changes in the ratio to better understand Flex Ltd's financial health and risk profile.
Peer comparison
Sep 30, 2024