Plexus Corp (PLXS)

Debt-to-assets 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
Long-term debt	US$ in thousands	197,800	294,800	383,600	388,200	374,300	439,000	428,300	461,500	401,600	383,500	360,300	298,900	217,100	212,000	199,600	302,500	299,300	298,300	249,500	219,400
Total assets	US$ in thousands	3,153,820	3,170,880	3,276,660	3,304,610	3,321,170	3,418,940	3,382,020	3,395,290	3,393,220	3,204,460	2,990,050	2,709,650	2,461,890	2,321,440	2,236,800	2,272,060	2,289,850	2,288,520	2,095,200	2,110,100
Debt-to-assets ratio		0.06	0.09	0.12	0.12	0.11	0.13	0.13	0.14	0.12	0.12	0.12	0.11	0.09	0.09	0.09	0.13	0.13	0.13	0.12	0.10

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 shown some fluctuation over the past few quarters. The ratio has ranged from 0.06 to 0.14 over the last five years. It peaked at 0.14 in December 2022 and has since shown some variability but has generally remained within the range of 0.09 to 0.13.

A lower debt-to-assets ratio indicates that the company relies less on debt financing to fund its operations and acquisitions, which can be seen as a positive sign of financial stability. However, it is important to note that an extremely low ratio may also suggest underutilization of debt for potential growth opportunities.

Conversely, a higher debt-to-assets ratio may imply a greater risk due to the company's higher leverage and potential financial distress in case of economic downturns. Therefore, monitoring this ratio over time can provide insights into Plexus Corp's capital structure and financial risk management strategies.