Plexus Corp (PLXS)

Financial leverage 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
Total assets	US$ in thousands	3,153,820	3,170,880	3,276,660	3,304,610	3,321,170	3,418,940	3,382,020	3,395,290	3,393,220	3,204,460	2,990,050	2,709,650	2,461,890	2,321,440	2,236,800	2,272,060	2,289,850	2,288,520	2,095,200	2,110,100
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
Financial leverage ratio		2.38	2.50	2.60	2.61	2.73	2.89	2.86	2.95	3.10	3.03	2.87	2.60	2.39	2.27	2.21	2.26	2.34	2.42	2.35	2.32

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 shown a slight fluctuation over the past 20 quarters, ranging from a low of 2.21 to a high of 3.10. Generally, the trend appears to be increasing over time, indicating that the company has been using more debt to finance its operations. A higher financial leverage ratio suggests that a larger portion of the company's assets are funded by debt rather than equity.

It is important to note that while using debt can amplify returns when business is booming, it also increases financial risk, as the company has to make interest payments on its debt regardless of its performance. Therefore, investors and creditors may closely monitor this ratio to assess the company's ability to meet its debt obligations.

Overall, the upward trend in Plexus Corp's financial leverage ratio may indicate a deliberate strategy to utilize debt financing for growth or operational needs. However, it is essential for the company to manage its debt levels prudently to avoid potential financial distress in the future.