Plexus Corp (PLXS)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	197,800	374,300	401,600	217,100	299,300
Total assets	US$ in thousands	3,153,820	3,321,170	3,393,220	2,461,890	2,289,850
Debt-to-assets ratio		0.06	0.11	0.12	0.09	0.13

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $197,800K ÷ $3,153,820K
= 0.06

The debt-to-assets ratio of Plexus Corp has exhibited fluctuations over the past five years. As of Sep 30, 2024, the ratio stands at 0.06, indicating that for every dollar of assets owned by the company, they have $0.06 in debt. This represents a decrease from the previous year's ratio of 0.11.

The downward trend in the debt-to-assets ratio from 2023 to 2024 suggests that Plexus Corp has been successful in reducing its debt relative to its total assets. A lower debt-to-assets ratio typically signifies lower financial risk and greater financial stability for the company, as it indicates a lower reliance on debt financing.

It is worth noting that the debt-to-assets ratio was highest in 2020 at 0.13 and has since decreased steadily over the years. This downward trajectory could indicate that Plexus Corp has been actively managing its debt levels and improving its financial position. However, it is important to continue monitoring the trend of this ratio to assess the company's ongoing ability to manage its debt obligations and maintain a healthy balance sheet.