Fabrinet (FN)
Payables 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 |
| Payables | US$ in thousands | 637,417 | 521,226 | 529,016 | 427,892 | 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 |
| Payables turnover | 4.72 | 5.50 | 5.18 | 6.15 | 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 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,005,978K ÷ $637,417K
= 4.72
The payables turnover ratio for Fabrinet demonstrates variability over the analyzed period, reflecting changes in the company’s payment practices and supplier credit policies. Starting from a ratio of approximately 5.24 times as of September 30, 2020, the ratio experienced some fluctuations before reaching a low point of around 4.69 times in September 2021. Subsequently, the ratio showed a gradual upward trend, peaking at approximately 6.55 times in September 2023, indicating an increase in the company's frequency of settling its payables within the period.
This rising trend suggests that Fabrinet has been improving its payment efficiency, possibly shortening its accounts payable period or taking a more aggressive stance in settling liabilities. The ratio's peak in late 2023 and early 2024, at over 6.0, highlights a significant increase from earlier periods, which could be indicative of tighter cash flow management or strategic supplier negotiations promoting prompt payments.
In the most recent data points, the ratio slightly declined but remained elevated compared to the initial levels, with values around 5.69 in March 2024 and 6.15 in September 2024. The ratio's fluctuation into the 4.7 to 5.7 range suggests ongoing adjustments to the company’s payment cycle, possibly influenced by operational needs or external supplier agreements.
Overall, the payables turnover ratio reflects a trend toward more frequent and prompt settlement of accounts payable over time, signaling potential improvements in working capital management and liquidity strategies. This pattern may also imply a strengthened supplier relationship stance and a focus on maintaining steady cash flows.
Peer comparison
Jun 30, 2025