Fabrinet (FN)
Payables 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 |
| Payables | US$ in thousands | 637,417 | 441,835 | 381,129 | 439,684 | 346,555 |
| Payables turnover | 4.72 | 5.72 | 6.06 | 4.51 | 4.78 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,005,980K ÷ $637,417K
= 4.72
The payables turnover ratio for Fabrinet over the period from June 30, 2021, to June 30, 2025, exhibits notable fluctuations. In the fiscal year ending June 30, 2021, the ratio stood at 4.78, indicating that the company settled its accounts payable approximately 4.78 times within that year. This ratio decreased slightly in the subsequent year to 4.51, suggesting a marginal slowdown in the rate at which the company paid its suppliers.
A significant increase is observed in the fiscal year ending June 30, 2023, when the ratio rose sharply to 6.06. This elevation implies that Fabrinet accelerated its payments to suppliers, settling payables more frequently relative to its cost of goods sold during that period. Such an increase may reflect improved operational efficiency, enhanced cash flow management, or strategic changes in trade credit policies.
Following this peak, the ratio declined again to 5.72 in June 2024, indicating a slight easing but still maintaining a relatively high rate of payables turnover compared to earlier years. By the fiscal year ending June 30, 2025, the ratio further decreased to 4.72, approaching levels observed in 2021, which may suggest a strategic adjustment toward extending payment terms or a moderation in the pace of accounts payable settlement.
Overall, the payables turnover for Fabrinet demonstrates periods of acceleration and deceleration, with a notable peak in 2023. These fluctuations could be reflective of changing operational strategies, liquidity considerations, or supplier negotiation outcomes, impacting the company's working capital management and overall financial flexibility.
Peer comparison
Jun 30, 2025