Plexus Corp (PLXS)

Solvency ratios

	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
Debt-to-assets ratio	0.06	0.09	0.12	0.12	0.11	0.13	0.13	0.14	0.12	0.12	0.12	0.11	0.09	0.09	0.09	0.13	0.13	0.13	0.12	0.10
Debt-to-capital ratio	0.13	0.19	0.23	0.23	0.24	0.27	0.27	0.29	0.27	0.27	0.26	0.22	0.17	0.17	0.16	0.23	0.23	0.24	0.22	0.19
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
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

Plexus Corp's solvency ratios provide insight into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.

The debt-to-assets ratio, which indicates the proportion of a company's assets financed by debt, has been relatively stable over the analyzed period, ranging from 0.06 to 0.13. As of September 30, 2024, Plexus Corp has a low debt-to-assets ratio of 0.06, suggesting that only 6% of its total assets are financed by debt.

The debt-to-capital ratio, measuring the percentage of a company's capital structure that is comprised of debt, has also shown stability, fluctuating between 0.13 and 0.29. The latest ratio of 0.13 indicates that debt represents 13% of Plexus Corp's total capital, signaling a moderate reliance on debt financing.

Similarly, the debt-to-equity ratio, which shows the proportion of a company's equity that is funded by debt, has remained consistent, ranging from 0.15 to 0.40. The ratio as of September 30, 2024, stands at 0.15, implying that debt contributes to 15% of Plexus Corp's equity, reflecting a relatively conservative capital structure.

Lastly, the financial leverage ratio, which measures the extent to which a company uses debt to finance its assets, has shown variability but generally upward trend, reaching 2.38 to 3.10. A higher financial leverage ratio indicates higher financial risk due to increased reliance on debt financing. As of September 30, 2024, Plexus Corp's financial leverage ratio of 2.38 suggests a moderate level of financial risk.

Overall, Plexus Corp's solvency ratios indicate a stable and prudent approach to debt management, with a conservative capital structure and a moderate reliance on debt financing to support its operations.

Coverage ratios

	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
Interest coverage	5.48	5.15	4.64	5.54	6.10	6.92	9.01	10.18	10.98	11.45	11.24	12.02	12.26	11.86	11.87	9.86	9.38	8.87	8.24	9.56

Interest coverage is a financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses with its operating income.

Examining Plexus Corp's interest coverage over the past 20 quarters, we observe fluctuations in the ratio. The trend shows that the company's ability to cover its interest payments has generally been strong, with the ratio consistently above 5 in most periods.

The interest coverage ratio ranged between a low of 4.64 in March 2024 and a high of 12.26 in June 2022. The peak values indicate that Plexus Corp had a robust ability to meet its interest expenses during those periods. However, the dip in March 2024 to 4.64 may raise some concerns about the company's ability to cover its interest obligations with its operating income during that specific quarter.

Overall, Plexus Corp's interest coverage appears to have been relatively healthy and stable over the analyzed periods, with the company consistently maintaining a ratio above 5, which suggests a solid capacity to handle its interest payments.