Fabrinet (FN)
Payables 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 |
| Payables | US$ in thousands | 441,835 | 429,021 | 376,556 | 357,106 | 381,129 | 436,085 | 438,475 | 409,414 | 439,684 | 402,581 | 391,176 | 373,663 | 346,555 | 275,705 | 296,948 | 284,173 | 251,603 | 240,028 | 234,929 | 252,147 |
| Payables turnover | 5.72 | 5.69 | 6.32 | 6.55 | 6.06 | 5.16 | 4.93 | 5.07 | 4.51 | 4.77 | 4.72 | 4.69 | 4.78 | 5.69 | 5.09 | 5.24 | 5.79 | 6.06 | 6.13 | 5.64 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,526,849K ÷ $441,835K
= 5.72
The payables turnover ratio measures how efficiently a company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently or quickly.
Analyzing Fabrinet's payables turnover over the past several quarters, we observe fluctuations in the ratio. The payables turnover ratio has ranged from a low of 4.51 to a high of 6.55 over the past few quarters.
In general, the trend seems to be improving, as the payables turnover ratio has generally been increasing over the recent quarters. This suggests that Fabrinet has been managing its payables more efficiently and possibly negotiating better payment terms with its suppliers.
Moreover, Fabrinet's payables turnover ratio is notably higher than 1, indicating that the company is paying its suppliers relatively quickly compared to the credit terms offered. This could reflect positively on Fabrinet's relationship with its suppliers and its ability to maintain good credit terms.
Overall, the trend of increasing payables turnover ratio for Fabrinet indicates potentially improved efficiency in managing supplier payments, which could positively impact the company's working capital management and cash flow.
Peer comparison
Jun 30, 2024