Fabrinet (FN)
Days of sales outstanding (DSO)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.51 | 4.96 | 4.59 | 4.53 | 4.87 | 4.77 | 4.65 | 5.00 | 4.97 | 4.59 | 4.64 | 4.98 | 5.00 | 4.75 | 5.28 | 5.52 | 5.39 | 5.06 | 4.75 | 5.16 | |
| DSO | days | 81.01 | 73.64 | 79.50 | 80.58 | 75.01 | 76.51 | 78.47 | 72.99 | 73.38 | 79.51 | 78.65 | 73.26 | 73.06 | 76.82 | 69.19 | 66.13 | 67.67 | 72.08 | 76.76 | 70.69 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.51
= 81.01
The analysis of Fabrinet’s days of sales outstanding (DSO) over the period from September 2020 through June 2025 reveals a pattern characterized by fluctuations around a generally elevated level. Starting at approximately 70.69 days at the end of September 2020, the DSO increased over the subsequent quarters, reaching periods exceeding 75 days by the end of 2020 and early 2021. Notably, the DSO peaked at 79.51 days in March 2023, indicating a period where collection cycles lengthened relative to earlier periods.
Throughout 2021, the DSO demonstrated variability but maintained a relatively high level, with values ranging from approximately 66.13 days to 76.82 days. An upward trend was observed in the latter part of 2021 and throughout 2022, with the DSO crossing the 78-day threshold multiple times, evidenced by readings of 78.65 days at the end of 2022 and 79.51 days in March 2023.
The period of 2023 saw the DSO stabilize within a range of approximately 72.99 to 78.47 days, with the average consistently elevated compared to the initial years. The most recent data points, from late 2024 to mid-2025, depict a consistent DSO around 73.64 to 81.01 days, with the highest reported at 81.01 days in June 2025.
Overall, the trend indicates that Fabrinet's collection cycle has remained prolonged, often approaching or exceeding 80 days in recent periods. This suggests an extended period of receivable collection relative to sales, potentially impacting cash flow management and liquidity. The prolonged DSO levels indicate that a significant portion of sales remains outstanding for nearly three months or more, which may reflect industry-specific payment terms, customer credit policies, or operational collection efficiency.