Flex Ltd (FLEX)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,257,000 | 21,407,000 | 19,325,000 | 15,836,000 | 13,690,000 |
| Total stockholders’ equity | US$ in thousands | 5,325,000 | 5,351,000 | 4,129,000 | 3,436,000 | 2,831,000 |
| Financial leverage ratio | 3.43 | 4.00 | 4.68 | 4.61 | 4.84 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,257,000K ÷ $5,325,000K
= 3.43
The financial leverage ratio of Flex Ltd has seen a decreasing trend over the past five years, which may indicate a reduction in the company's reliance on debt to finance its operations. As of March 31, 2024, the financial leverage ratio stands at 3.43, marking a decrease from 4.00 in the previous year and a significant decline from 4.84 in 2020. This suggests that Flex Ltd has been able to manage its debt levels more efficiently and possibly strengthen its financial position. However, it is important to further investigate the reasons behind this trend to assess the overall impact on the company's financial stability and performance.
Peer comparison
Mar 31, 2024