Fabrinet (FN)
Inventory turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,005,980 | 2,526,850 | 2,308,960 | 1,983,630 | 1,657,990 |
| Inventory | US$ in thousands | 581,015 | 463,206 | 519,576 | 557,145 | 422,133 |
| Inventory turnover | 5.17 | 5.46 | 4.44 | 3.56 | 3.93 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,005,980K ÷ $581,015K
= 5.17
The inventory turnover ratio for Fabrinet demonstrates a progressive improvement over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 3.93 in 2021 to 3.56 in 2022, indicating a slight reduction in efficiency. However, from 2022 onward, a consistent upward trend is observed, with the ratio rising sharply to 4.44 in 2023, then further to 5.46 in 2024, before experiencing a slight decline to 5.17 in 2025.
This pattern suggests that Fabrinet has generally enhanced its inventory management efficiency over the span, with the most notable improvement occurring between 2022 and 2024. The increase in the ratio indicates that the company has been able to sell and replace its inventory more rapidly, reducing the amount of inventory held relative to sales. The slight decrease in 2025 may warrant further investigation to understand if it stems from shifts in demand, supply chain factors, or strategic inventory adjustments.
Overall, the trend toward higher inventory turnover ratios reflects an improved operational efficiency in managing inventory levels, aligning with favorable inventory utilization and potentially contributing positively to the company's liquidity and working capital management.
Peer comparison
Jun 30, 2025