Fabrinet (FN)
Days of inventory on hand (DOH)
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.46 | 5.37 | 5.73 | 5.31 | 4.44 | 4.06 | 4.03 | 3.93 | 3.56 | 4.24 | 3.81 | 3.76 | 3.93 | 4.44 | 4.07 | 4.39 | 4.70 | 5.02 | 4.90 | 4.42 | |
| DOH | days | 66.91 | 67.94 | 63.65 | 68.72 | 82.13 | 89.98 | 90.55 | 92.82 | 102.52 | 86.09 | 95.77 | 96.95 | 92.93 | 82.24 | 89.78 | 83.23 | 77.67 | 72.76 | 74.56 | 82.55 |
June 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.46
= 66.91
The Days of Inventory on Hand (DOH) ratio for Fabrinet has shown some fluctuations over the past few quarters.
From December 2019 to March 2020, the DOH decreased from 82.55 days to 74.56 days, indicating a more efficient management of inventory during that period. However, there was a subsequent increase in DOH reaching 77.67 days by September 2020, suggesting a buildup of inventory levels.
The trend continued to fluctuate over the next few quarters, with DOH peaking at 102.52 days in June 2022, which may signal potential inventory management challenges. Subsequently, Fabrinet managed to lower its DOH to 63.65 days by December 2023, indicating improved efficiency in managing inventory levels.
However, the most recent data as of June 2024 shows a slight increase in DOH to 66.91 days, which suggests that Fabrinet may be carrying more inventory on hand than in the previous quarter. This increase could be due to various factors such as changes in demand patterns, production delays, or supply chain disruptions.
Overall, a careful analysis of Fabrinet's inventory management practices and the reasons behind the fluctuations in the DOH ratio will be essential to assess the company's operational efficiency and financial performance in the future.
Peer comparison
Jun 30, 2024