Flex (FLEX) Interest Coverage : 6.81 (As of Dec. 2023)

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What is Flex Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Flex's Operating Income for the three months ended in Dec. 2023 was $361 Mil. Flex's Interest Expense for the three months ended in Dec. 2023 was $-53 Mil. Flex's interest coverage for the quarter that ended in Dec. 2023 was 6.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Flex's Interest Coverage or its related term are showing as below:

FLEX' s Interest Coverage Range Over the Past 10 Years
Min: 3.02 Med: 5.14 Max: 13.01
Current: 6.15

FLEX's Interest Coverage is ranked worse than
66.71% of 1601 companies
in the Hardware industry
Industry Median: 12.72 vs FLEX: 6.15

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Flex Interest Coverage Historical Data

The historical data trend for Flex's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Flex Interest Coverage Chart

Flex Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

Get a 7-Day Free Trial

3.36

3.02

5.02

6.15

5.26

Flex Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															5.18	4.58	6.32	7.09	6.81

Competitive Comparison of Flex's Interest Coverage

For the Electronic Components subindustry, Flex's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Flex's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Flex's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Flex's Interest Coverage falls into.

Flex Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Flex's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Flex's Interest Expense was $-226 Mil. Its Operating Income was $1,188 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,197 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	1188	/	-226
	=	5.26

Flex's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Flex's Interest Expense was $-53 Mil. Its Operating Income was $361 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,933 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	361	/	-53
	=	6.81

The higher the ratio, the stronger the company's Financial Strength is.

Flex (NAS:FLEX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Flex Interest Coverage Related Terms

Thank you for viewing the detailed overview of Flex's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Flex (FLEX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Flex Ltd (NAS:FLEX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FLEX:Mexico FXI:Germany FXI:Germany

Address

2 Changi South Lane, Singapore, SGP, 486123

Website

https://www.flex.com

Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to global electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial. The Nextracker segment provides solar tracker technologies that optimize and increase energy production. The company's geographical segments include China, Mexico, the United States, Brazil, Malaysia, Hungary, and Others.

Executives

Erin Mcsweeney	director	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
David Scott Offer	officer: EVP, General Counsel	6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Paul Lundstrom	officer: Chief Financial Officer	222 N. SEPULVEDA BLVD., SUITE 500, EL SEGUNDO CA 90245
Revathi Advaithi	director, officer: Chief Executive Officer	EATON HOUSE, 30 PEMBROKE ROAD, DUBLIN 4 L2 -
Kwang Hooi Tan	officer: Group President	6201 AMERICA CENTER DRIVE, ATTN: LEGAL, SAN JOSE CA 95002
Michael P Hartung	officer: President, Agility Solutions	6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Daniel Wendler	officer: Chief Accounting Officer	6201 AMERICA CENTER DRIVE, ATTN: LEGAL, SAN JOSE CA 95002
Rebecca Sidelinger	officer: Group President	6201 AMERICA CENTER DRIVE, ATTN: LEGAL, SAN JOSE CA 95002
Stevens Charles K. Iii	director	300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Maryrose Sylvester	director	C/O 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Pat Ward	director	500 JACKSON STREET, COLUMBUS IN 47201
Francois Barbier	officer: President, Global Operations	ONE MARINA BOULEVARD, #28-00, SINGAPORE U0 018989
David P Bennett	officer: Chief Accounting Officer	3616 NICOLE AVE, PLEASANTON CA 94588
Todd Fruchterman	officer: Pres, Reliability Solutions	C/O BUTTERFLY NETWORK, INC., 530 OLD WHITFIELD STREET, GUILFORD CT 06437
John D Harris	director	C/O FLEXTRONICS INTERNATIONAL USA, INC., 6201 AMERICA CENTER DRIVE, SAN JOSE CA 95002