Flex Ltd (FLEX)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,381,000 | 18,272,000 | 18,586,000 | 17,737,000 | 18,257,000 | 20,366,000 | 20,968,000 | 20,936,000 | 21,395,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 5,002,000 | 4,992,000 | 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 | 2,939,600 |
| Financial leverage ratio | 3.67 | 3.66 | 3.71 | 3.55 | 3.43 | 3.41 | 3.55 | 3.87 | 4.00 | 4.64 | 4.93 | 4.90 | 4.68 | 4.97 | 4.76 | 4.62 | 4.61 | 4.63 | 4.82 | 4.81 |
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 shown a fluctuating trend over the past few years. The ratio started at 4.81 in June 2020 and gradually increased to reach a peak of 4.97 in December 2021. Subsequently, there was a slight decrease to 3.87 by June 2023. The ratio continued to decline and reached its lowest point at 3.41 by December 2023 before slightly increasing again.
Overall, the decreasing trend in the financial leverage ratio indicates that Flex Ltd has been reducing its reliance on debt to finance its operations over the years. This could suggest a more conservative approach to managing its capital structure and financial risk. However, it is important to monitor this ratio in conjunction with other financial metrics to gain a more comprehensive understanding of the company's financial health and stability.
Peer comparison
Mar 31, 2025