Fabrinet (FN)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,882,970 | 2,645,240 | 2,262,220 | 1,879,350 | 1,641,840 |
| Property, plant and equipment | US$ in thousands | 307,240 | 310,350 | 292,277 | 241,129 | 228,274 |
| Fixed asset turnover | 9.38 | 8.52 | 7.74 | 7.79 | 7.19 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,882,970K ÷ $307,240K
= 9.38
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.
In the case of Fabrinet, the fixed asset turnover ratio has been consistently increasing over the past five years, with values of 9.38 in 2024, 8.52 in 2023, 7.74 in 2022, 7.79 in 2021, and 7.19 in 2020. This trend suggests that the company has been improving its efficiency in generating revenue from its fixed assets over time.
Fabrinet's fixed asset turnover ratio of 9.38 in 2024 indicates that the company generated $9.38 in revenue for every $1 of fixed assets invested. This implies strong efficiency in utilizing its fixed assets to drive sales.
Overall, the increasing trend in Fabrinet's fixed asset turnover ratio reflects positively on the company's operational efficiency and asset utilization, indicating that it has been effectively leveraging its fixed assets to generate revenue in recent years.
Peer comparison
Jun 30, 2024