Fabrinet (FN)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,526,850 | 2,308,960 | 1,983,630 | 1,657,990 | 1,455,730 |
| Inventory | US$ in thousands | 463,206 | 519,576 | 557,145 | 422,133 | 309,786 |
| Inventory turnover | 5.46 | 4.44 | 3.56 | 3.93 | 4.70 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,526,850K ÷ $463,206K
= 5.46
Fabrinet's inventory turnover has shown a consistent upward trend over the past five years. The ratio has steadily increased from 3.93 in June 2021 to 5.46 in June 2024. This indicates that the company is improving the efficiency of managing its inventory levels and generating sales from its inventory more frequently. A higher inventory turnover ratio suggests that Fabrinet is selling its products more quickly, which can help reduce holding costs and potentially improve liquidity. Overall, the increasing trend in inventory turnover is a positive indicator of Fabrinet's operational efficiency and inventory management practices over the years.
Peer comparison
Jun 30, 2024