Fabrinet (FN)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,005,978 | 2,868,389 | 2,739,373 | 2,630,978 | 2,526,849 | 2,439,613 | 2,378,287 | 2,337,364 | 2,308,964 | 2,249,396 | 2,163,824 | 2,077,645 | 1,984,697 | 1,919,172 | 1,848,009 | 1,751,553 | 1,657,987 | 1,567,993 | 1,512,328 | 1,488,581 |
| Inventory | US$ in thousands | 581,015 | 531,338 | 489,159 | 440,405 | 463,206 | 454,134 | 414,758 | 440,095 | 519,576 | 554,247 | 536,536 | 528,050 | 557,145 | 452,638 | 484,873 | 465,251 | 422,133 | 353,283 | 371,996 | 339,429 |
| Inventory turnover | 5.17 | 5.40 | 5.60 | 5.97 | 5.46 | 5.37 | 5.73 | 5.31 | 4.44 | 4.06 | 4.03 | 3.93 | 3.56 | 4.24 | 3.81 | 3.76 | 3.93 | 4.44 | 4.07 | 4.39 |
June 30, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,005,978K ÷ $581,015K
= 5.17
The analysis of Fabrinet’s inventory turnover ratios over the period from September 30, 2020, to June 30, 2025, indicates a general trend of increasing efficiency in inventory management. The ratio fluctuated during the initial years, with notable decreases observed at certain points—such as from 4.39 in September 2020 to 4.07 in December 2020 and further to 3.56 in June 2022—suggesting periods of slower inventory turnover. Conversely, periods of improvement are evident subsequently, with the ratio rising to 4.44 by June 2023 and continuing an upward trajectory to reach 5.97 by September 2024.
This upward trend in inventory turnover signifies that Fabrinet has progressively enhanced its inventory management efficiency, likely reducing the average duration of inventory holds and increasing sales relative to inventory levels. The ratio's growth from approximately 3.56 in mid-2022 to nearly 6.00 in late 2024 reflects a strategic or operational improvement, possibly including better demand forecasting, supply chain optimization, or product mix adjustments.
The overall pattern suggests that Fabrinet has successfully managed to convert its inventory into sales more swiftly in recent periods, which is favorable from a liquidity and operating efficiency perspective. However, it is important to consider that excessively high inventory turnover ratios might also point to potential stock shortages or over-aggressive inventory reduction strategies, which could impact sales or customer satisfaction if not managed carefully. Nonetheless, the sustained increase in the inventory turnover ratio over the analyzed period generally aligns with positive operational performance.
Peer comparison
Jun 30, 2025
Jun 30, 2025