Plexus Corp (PLXS)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,153,820 | 3,321,170 | 3,393,220 | 2,461,890 | 2,289,850 |
| Total stockholders’ equity | US$ in thousands | 1,324,820 | 1,214,380 | 1,095,730 | 1,028,230 | 977,480 |
| Financial leverage ratio | 2.38 | 2.73 | 3.10 | 2.39 | 2.34 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,153,820K ÷ $1,324,820K
= 2.38
The financial leverage ratio of Plexus Corp has exhibited variability over the past five years. The ratio decreased from 2.34 in 2020 to 2.39 in 2021, before slightly increasing to 2.73 in 2023 and then to 3.10 in 2022. However, it decreased again to 2.38 in 2024.
A financial leverage ratio above 1 indicates that the company is using debt to finance its operations, with a higher ratio suggesting greater reliance on debt. Plexus Corp's ratios above 2 over the past five years indicate a significant proportion of their assets being funded by debt compared to equity.
The downward trend from 2022 to 2024 could signify a shift towards utilizing more equity financing or paying down debt, potentially indicating a strategic effort to reduce financial risk and improve solvency. Further analysis may be required to assess the impact of this trend on the company's overall financial health and sustainability.
Peer comparison
Sep 30, 2024