Plexus Corp (PLXS)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	3,321,170	3,393,220	2,461,890	2,289,850	2,000,880
Total stockholders’ equity	US$ in thousands	1,214,380	1,095,730	1,028,230	977,480	865,576
Financial leverage ratio		2.73	3.10	2.39	2.34	2.31

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,321,170K ÷ $1,214,380K
= 2.73

The financial leverage ratio of Plexus Corp. has fluctuated over the past five years, ranging from 2.31 to 3.10. This ratio measures the company's use of debt to finance its assets. A higher ratio indicates a greater reliance on debt financing, which can lead to higher financial risk due to interest obligations and potential repayment difficulties. Conversely, a lower ratio signifies a more conservative capital structure. The recent decrease in the financial leverage ratio from 3.10 to 2.73 suggests a reduction in the company's reliance on debt financing, potentially lowering its financial risk. However, further investigation into the company's capital structure and overall financial health is necessary to fully comprehend the implications of this trend.