Fabrinet (FN)
Inventory turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,526,849 | 2,439,613 | 2,378,287 | 2,337,364 | 2,308,964 | 2,248,329 | 2,162,757 | 2,076,578 | 1,983,630 | 1,919,172 | 1,848,009 | 1,751,553 | 1,657,987 | 1,567,993 | 1,512,328 | 1,488,581 | 1,455,731 | 1,455,743 | 1,441,062 | 1,421,519 |
| Inventory | US$ in thousands | 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 | 309,786 | 290,208 | 294,380 | 321,511 |
| Inventory turnover | 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 | 4.70 | 5.02 | 4.90 | 4.42 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,526,849K ÷ $463,206K
= 5.46
Fabrinet's inventory turnover has shown variations over the past few quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a given period.
From December 2019 to June 2020, Fabrinet's inventory turnover ranged between 4.07 and 4.70, showing relatively stable performance. However, there was a significant increase in inventory turnover to 5.46 in June 2024 compared to the previous quarter, indicating that Fabrinet sold and replaced its inventory more frequently.
Overall, Fabrinet's inventory turnover has generally been healthy, staying above 3.50, which is considered a good benchmark for the industry. A higher inventory turnover ratio suggests efficient inventory management, which can lead to lower carrying costs and improved cash flow. However, it is essential to monitor trends in inventory turnover to ensure that they align with the company's sales and production capabilities.
Peer comparison
Jun 30, 2024
Jun 30, 2024