Fabrinet (FN)

The data on Fabrinet's days of sales outstanding (DSO) from June 30, 2021, through June 30, 2025, indicates a consistent upward trend in the company's receivables collection period over the analyzed period.

Starting at approximately 67.67 days as of June 30, 2021, the DSO increased to 73.04 days by June 30, 2022, reflecting an approximately 5.4-day rise within that year. The upward trajectory continued into 2023, with the DSO slightly increasing to 73.38 days, representing a marginal 0.34-day increase from the prior year. The trend further extended into 2024, reaching 75.01 days, which suggests an additional approximately 1.63-day increase compared to the previous year.

By June 30, 2025, the DSO had risen to 81.01 days, marking a notable increase of nearly 6 days relative to the previous year. Over the four-year span, the DSO has increased by roughly 13.34 days, indicating a gradual elongation of the average period it takes for Fabrinet to collect receivables after sales.

This trend suggests a movement toward lengthening collection cycles, which could be interpreted in various ways. Potential explanations include changes in credit policies, customer creditworthiness, or shifts in sales composition towards customers with longer payment terms. An increased DSO can also imply a higher exposure to credit risk and a potential impact on cash flow timing. However, without additional context on industry standards or internal credit management practices, it is difficult to ascertain whether this trend reflects operational challenges or strategic changes.

In summary, Fabrinet's DSO has been steadily increasing over the observed four-year period, indicating a growing period for receivables collection that warrants further analysis to understand underlying causes and potential implications for liquidity and working capital management.

Peer comparison

Jun 30, 2025