Flex Ltd (FLEX)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,241,000 | 1,053,000 | 1,044,000 | 1,106,000 | 386,000 |
| Interest expense | US$ in thousands | 218,000 | 207,000 | 191,000 | 166,000 | 161,000 |
| Interest coverage | 5.69 | 5.09 | 5.47 | 6.66 | 2.40 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,241,000K ÷ $218,000K
= 5.69
The interest coverage ratio measures a company's ability to meet interest payments on its outstanding debt. Looking at the trend for Flex Ltd from March 31, 2021, to March 31, 2025, we see an improvement in interest coverage. The ratio increased from 2.40 in 2021 to 6.66 in 2022, indicating the company's enhanced capacity to cover its interest expenses with operating earnings. However, there was a slight decline in the following years, with the ratio settling around 5.47 in 2023, 5.09 in 2024, and 5.69 in 2025. Overall, Flex Ltd's interest coverage ratio demonstrates a generally healthy ability to meet its interest obligations over the period analyzed.
Peer comparison
Mar 31, 2025