Flex Ltd (FLEX)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,381,000 | 18,257,000 | 21,407,000 | 19,325,000 | 15,836,000 |
| Total stockholders’ equity | US$ in thousands | 5,002,000 | 5,325,000 | 5,351,000 | 4,129,000 | 3,436,000 |
| Financial leverage ratio | 3.67 | 3.43 | 4.00 | 4.68 | 4.61 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,381,000K ÷ $5,002,000K
= 3.67
Flex Ltd's financial leverage ratio has fluctuated over the past five years. It was 4.61 as of March 31, 2021, and slightly increased to 4.68 by March 31, 2022. However, in the subsequent years, there was a downward trend as the ratio decreased to 4.00 by March 31, 2023, and further to 3.43 by March 31, 2024. The ratio then experienced a slight increase to 3.67 by March 31, 2025.
This indicates that Flex Ltd has been gradually reducing its financial leverage over the years, which could imply a lower level of debt relative to its equity. A decreasing financial leverage ratio may also suggest improved financial stability and lower risk for the company. It would be important to further analyze the components of the ratio and the company's overall financial position to gain a more comprehensive understanding of its leverage strategy.
Peer comparison
Mar 31, 2025