Fabrinet (FN)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.87 | 4.97 | 5.15 | 5.58 | 5.53 | |
| DSO | days | 75.01 | 73.38 | 70.88 | 65.36 | 66.02 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.87
= 75.01
The Days Sales Outstanding (DSO) for Fabrinet has shown a fluctuating trend over the past five years. In the most recent fiscal year ending June 30, 2024, the DSO stood at 75.01 days, a slight increase from the prior year's 73.38 days. This indicates that it took Fabrinet approximately 75 days to collect its accounts receivable on average in 2024.
Looking back over the period from FY 2020 to FY 2024, there has been a general upward trend in DSO, suggesting a potential deterioration in the company's ability to collect its outstanding receivables efficiently. The DSO increased from 66.02 days in 2020 to 75.01 days in 2024.
Overall, the increasing trend in DSO indicates a lengthening of the average collection period for Fabrinet, which could potentially signal issues with customer creditworthiness, collection processes, or changes in payment terms. Monitoring and managing DSO effectively is crucial for maintaining healthy cash flow and liquidity in the business.
Peer comparison
Jun 30, 2024