Plexus Corp (PLXS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,324,820	1,214,380	1,095,730	1,028,230	977,480
Debt-to-capital ratio		0.13	0.24	0.27	0.17	0.23

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $197,800K ÷ ($197,800K + $1,324,820K)
= 0.13

The debt-to-capital ratio of Plexus Corp has exhibited fluctuations over the past five years. In 2024, the ratio stands at 0.13, indicating that the company's level of debt relative to its total capital is relatively low. This signifies a stronger financial position with a greater proportion of capital funded by equity rather than debt.

Compared to the previous year, where the ratio was 0.24, there has been a significant decrease in the debt-to-capital ratio. This suggests improved financial health as the company has managed to reduce its reliance on debt financing.

Looking further back, the trend shows fluctuations in the ratio, with a peak of 0.27 in 2022 and a low of 0.17 in 2021. Overall, the company seems to have made efforts to manage its debt levels and maintain a balanced capital structure over the years.

Analyzing these trends can provide insights into the company's financial leverage and its ability to meet debt obligations. It also indicates the company's risk exposure and the extent to which it relies on debt to fund its operations and investments.