Flex Ltd (FLEX)

Solvency ratios

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
Debt-to-assets ratio 0.17 0.15 0.18 0.17 0.16 0.16 0.17 0.17 0.15 0.16 0.17 0.21 0.21 0.22 0.22 0.24 0.25 0.24 0.20 0.19
Debt-to-capital ratio 0.39 0.35 0.38 0.37 0.37 0.39 0.40 0.44 0.42 0.43 0.44 0.51 0.50 0.50 0.51 0.53 0.55 0.54 0.49 0.48
Debt-to-equity ratio 0.64 0.53 0.61 0.58 0.58 0.64 0.66 0.78 0.74 0.76 0.79 1.04 1.00 1.00 1.02 1.11 1.20 1.16 0.95 0.93
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

Flex Ltd's solvency ratios have shown some fluctuations over the past few quarters. The debt-to-assets ratio has ranged between 0.15 and 0.22, with a slight increase in the most recent quarter to 0.18. This indicates that the company's level of debt relative to its total assets has been relatively stable, although there was a slight increase in the most recent quarter.

The debt-to-capital ratio has also shown some variability, ranging from 0.35 to 0.55 over the past few quarters. This ratio increased to 0.38 in the most recent quarter, suggesting that the proportion of debt in the company's capital structure has increased slightly.

Similarly, the debt-to-equity ratio has fluctuated between 0.53 and 1.20 over the period under review. The most recent ratio of 0.61 shows a moderate increase compared to previous quarters, indicating a higher level of debt relative to equity.

The financial leverage ratio, which measures the company's total assets to equity, has also displayed some variability, ranging from 3.41 to 4.97. The ratio was 3.43 in the most recent quarter, which indicates a slight decrease compared to the previous quarter.

Overall, Flex Ltd's solvency ratios suggest that the company has maintained a relatively stable level of debt relative to its assets and capital structure, with some fluctuations in the most recent quarter. However, the increasing trend in debt-to-capital and debt-to-equity ratios warrants further monitoring to ensure a healthy balance between debt and equity in the company's financial structure.

Coverage ratios

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
Interest coverage 5.01 5.50 5.67 7.04 6.63 6.30 6.33 6.51 6.52 6.25 6.31 6.70 6.54 6.10 6.56 6.79 10.81 26.76 22.81 2.69

Flex Ltd's interest coverage ratio has shown a generally stable and healthy trend over the past several quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has consistently been above 5, with an average of around 6.5 over the past few quarters.

The company's interest coverage peaked at 26.76 in the third quarter of 2020, which may have been due to a significant increase in earnings or a decrease in interest expenses during that period. However, the ratio dropped to 2.69 in the fourth quarter of 2019, suggesting a potential strain on the company's ability to cover its interest payments at that time.

Overall, the trend in Flex Ltd's interest coverage ratio reflects a solid financial position with a comfortable buffer to handle its interest expenses. It is essential for investors and creditors to monitor this ratio to assess the company's ability to meet its debt obligations in the future.