Plexus Corp (PLXS)

Financial leverage ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	2,000,880	2,016,230	2,000,850
Total stockholders’ equity	US$ in thousands	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	865,576	860,791	875,444
Financial leverage ratio		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	2.31	2.34	2.29

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,304,610K ÷ $1,266,760K
= 2.61

The financial leverage ratio of Plexus Corp has shown fluctuations over the past few quarters. The ratio measures the extent to which the company relies on debt financing to fund its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.

From the data provided, we can see that Plexus Corp's financial leverage ratio has varied between 2.21 and 3.10 over the past five quarters. The ratio peaked at 3.10 in September 2022 and has since trended downwards, reaching a low of 2.27 in June 2021, before increasing again.

Overall, the trend seems to indicate a moderate level of financial leverage, with the ratio hovering around the mid-to-high 2s in recent quarters. Investors and analysts closely monitor changes in the financial leverage ratio as it can signal potential risks related to the company's ability to meet its debt obligations and its overall financial stability. It's important for Plexus Corp to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.