Flex Ltd (FLEX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,586,000 | 17,737,000 | 18,257,000 | 20,366,000 | 20,968,000 | 20,936,000 | 21,407,000 | 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 | 13,690,000 | 14,135,400 |
| 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 |
| Financial leverage ratio | 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 | 4.84 | 4.88 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,586,000K ÷ $5,003,000K
= 3.71
Flex Ltd's financial leverage ratio has fluctuated over the past several quarters, ranging from a low of 3.41 in December 2023 to a high of 4.97 in March 2022. The financial leverage ratio measures the proportion of a company's debt to its equity, indicating the extent to which the company relies on debt financing.
A higher financial leverage ratio suggests that Flex Ltd has a higher level of financial leverage, meaning that it is relying more on debt to finance its operations and growth. This can potentially magnify returns for shareholders during periods of growth, but also increases the company's financial risk as it has to make regular interest and principal payments on its debt.
On the other hand, a lower financial leverage ratio indicates a lower level of debt relative to equity, which may imply a more conservative financial structure with less risk of financial distress in case of adverse business conditions.
Flex Ltd's financial leverage ratio has generally been on the higher side, fluctuating between 3.41 and 4.97. Investors and stakeholders may want to closely monitor this ratio to assess the company's risk profile and financial stability, especially in the context of changing market conditions and economic uncertainties.
Peer comparison
Sep 30, 2024