Plexus Corp (PLXS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,324,820	1,266,360	1,259,760	1,266,760	1,214,380	1,184,360	1,182,380	1,150,260	1,095,730	1,058,190	1,040,590	1,044,100	1,028,230	1,020,450	1,013,950	1,006,960	977,480	944,821	892,558	908,372
Debt-to-capital ratio		0.13	0.19	0.23	0.23	0.24	0.27	0.27	0.29	0.27	0.27	0.26	0.22	0.17	0.17	0.16	0.23	0.23	0.24	0.22	0.19

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 shown fluctuations over the past several quarters. The ratio stood at 0.13 in the most recent reporting period, indicating that only 13% of the company's capital structure was financed by debt. This suggests a relatively conservative debt level compared to the company's equity.

Looking back at historical data, the ratio has ranged from 0.16 to 0.29 over the past few years. The downward trend in the debt-to-capital ratio from 0.29 in December 2022 to 0.13 in September 2024 could signify a strategic shift towards reducing the reliance on debt financing or a strengthening of the company's equity position.

It is important to note that a low debt-to-capital ratio generally indicates lower financial risk and greater financial stability for the company. However, it is essential to consider the industry norms and the company's specific capital structure requirements when assessing the significance of this ratio in isolation. Overall, Plexus Corp's debt-to-capital ratio suggests a prudent approach to managing its capital structure.