Fabrinet (FN)
Days of inventory on hand (DOH)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 5.17 | 5.46 | 4.44 | 3.56 | 3.93 | |
| DOH | days | 70.55 | 66.91 | 82.13 | 102.52 | 92.93 |
June 30, 2025 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.17
= 70.55
The analysis of Fabrinet's days of inventory on hand (DOH) over the period from June 2021 to June 2025 indicates notable fluctuations and trends in inventory management efficiency. As of June 30, 2021, the DOH was approximately 92.93 days, reflecting the average duration inventory remained in stock before being sold. This figure increased substantially to 102.52 days by June 30, 2022, suggesting a period of inventory accumulation or slower turnover, potentially due to changes in supply chain dynamics, product mix, or demand fluctuations.
Subsequently, there was a marked improvement in inventory management, as evidenced by a reduction to 82.13 days by June 30, 2023. This decline indicates enhanced inventory turnover, possibly resulting from operational efficiencies, improved demand forecasting, or supply chain optimization. The downward trend continued into June 30, 2024, with the DOH decreasing further to 66.91 days, demonstrating ongoing improvements in inventory management and increased responsiveness to market demand.
However, in the subsequent year, the DOH experienced an increase to 70.55 days by June 30, 2025. While still lower than the peak in 2022, this uptick may suggest slight adjustments in inventory policies or external factors impacting inventory turnover rates. Overall, the data depicts a trend toward more efficient inventory management over the analyzed period, with a significant reduction from the initial 92.93 days to approximately 66.91 days. Such improvements are generally indicative of the company's efforts to optimize working capital and align inventory levels more closely with sales cycles.