Fabrinet (FN)
Payables 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 |
| Payables | US$ in thousands | 441,835 | 381,129 | 439,684 | 346,555 | 251,603 |
| Payables turnover | 5.72 | 6.06 | 4.51 | 4.78 | 5.79 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,526,850K ÷ $441,835K
= 5.72
Fabrinet's payables turnover has fluctuated over the past five years, ranging from a low of 4.51 in 2022 to a high of 6.06 in 2023. The payables turnover ratio measures how efficiently a company pays its suppliers, with a higher ratio indicating that the company is paying its suppliers more frequently within a period.
The decreasing trend from 2020 to 2022 suggests that Fabrinet may have been taking longer to pay its suppliers during this period. However, the increase in payables turnover in 2023 and 2024 indicates an improvement in the company's payment efficiency.
Overall, Fabrinet's payables turnover ratio of 5.72 in 2024 is higher than the ratios in the previous two years, indicating that the company is managing its payables more effectively and potentially taking advantage of credit terms with its suppliers. This trend may reflect positively on Fabrinet's working capital management and financial health.
Peer comparison
Jun 30, 2024