Plexus Corp (PLXS)

Debt-to-equity 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-equity ratio		0.15	0.23	0.30	0.31	0.31	0.37	0.36	0.40	0.37	0.36	0.35	0.29	0.21	0.21	0.20	0.30	0.31	0.32	0.28	0.24

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $197,800K ÷ $1,324,820K
= 0.15

The debt-to-equity ratio of Plexus Corp has shown some fluctuations over the past few years. As of September 30, 2024, the ratio stands at 0.15, indicating a low level of debt relative to equity. This suggests that the company relies more on equity financing rather than debt to fund its operations and investments.

Looking at the trend over the past several quarters, we see that the ratio has generally been declining from a high of 0.40 in December 31, 2022, to the current low of 0.15. This downward trend may indicate that Plexus Corp has been reducing its reliance on debt financing and strengthening its financial position by increasing equity contributions.

Overall, the decreasing trend in the debt-to-equity ratio implies a positive development for Plexus Corp's financial health and stability. A lower ratio generally indicates lower financial risk and better solvency. However, it is important to note that a very low debt-to-equity ratio may also suggest underutilization of debt, which could limit the company's ability to take advantage of leverage for potential growth opportunities.