Flex Ltd (FLEX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Flex Ltd's solvency ratios indicate a strong financial position with consistently low debt levels compared to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00% from June 30, 2020, to March 31, 2025. This suggests that Flex Ltd is not heavily reliant on debt to finance its operations and investments.
Additionally, the financial leverage ratio, which measures the extent of a company's assets that are financed by debt, has shown a decreasing trend over the period, from 4.81 on June 30, 2020, to 3.67 on March 31, 2025. The decreasing trend in the financial leverage ratio indicates that Flex Ltd is becoming less leveraged over time, which is a positive sign for solvency and financial stability.
Overall, based on the solvency ratios, Flex Ltd appears to have a strong and stable financial position with low debt levels and improving leverage ratios over the period analyzed. This indicates that the company has the ability to meet its financial obligations and has a solid foundation for future growth and profitability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.05 | 5.06 | 5.21 | 5.01 | 5.26 | 5.47 | 5.14 | 4.86 | 5.11 | 5.29 | 5.59 | 6.34 | 7.17 | 5.50 | 6.61 | 6.90 | 5.59 | 6.03 | 3.80 | 2.61 |
Flex Ltd's interest coverage ratio has shown some fluctuations over the period from June 30, 2020, to March 31, 2025. The interest coverage ratio measures a company's ability to meet its interest obligations with available earnings.
The interest coverage ratio for Flex Ltd started at 2.61 on June 30, 2020, indicating that the company's earnings were able to cover its interest expenses just over two times. The ratio improved to 6.90 on June 30, 2021, which implies that the company's earnings could cover its interest expenses almost seven times. This improvement suggests a stronger ability to meet interest payments.
However, the ratio fluctuated through the subsequent periods, with values ranging from 4.05 on March 31, 2025, to 7.17 on March 31, 2022. The fluctuation in the ratio could be influenced by various factors, including changes in earnings, interest expenses, and debt levels.
Overall, Flex Ltd's interest coverage ratio indicates the company's ability to service its debt obligations with its earnings, with fluctuations observed over the period under review. Analysts should monitor this ratio along with other financial metrics to assess the company's financial health and debt repayment capacity.