Fabrinet (FN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.87 | 4.77 | 4.65 | 5.00 | 4.97 | 4.77 | 4.76 | 5.14 | 5.15 | 4.90 | 5.46 | 5.73 | 5.58 | 5.32 | 4.98 | 5.36 | 5.53 | 5.33 | 5.26 | 5.87 |
| 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 |
| Working capital turnover | 1.98 | 2.03 | 2.06 | 2.16 | 2.26 | 2.24 | 2.25 | 2.32 | 2.29 | 2.26 | 2.23 | 2.18 | 2.07 | 2.00 | 1.99 | 2.04 | 2.05 | 2.15 | 2.15 | 2.21 |
Fabrinet's activity ratios reflect the efficiency with which the company manages its inventory, receivables, payables, and working capital.
1. Inventory turnover: Fabrinet's inventory turnover has been relatively stable over the periods, ranging from 4.03 to 5.73. This indicates that the company is effectively managing its inventory levels and quickly converting inventory into sales.
2. Receivables turnover: The receivables turnover ratio has also shown consistency, fluctuating between 4.65 and 5.87. This suggests that Fabrinet efficiently collects receivables from customers, with a higher turnover ratio indicating faster collection.
3. Payables turnover: The payables turnover has been somewhat volatile, ranging from 4.51 to 6.55. A higher payables turnover ratio implies that the company takes less time to pay its suppliers, potentially benefiting from early payment discounts.
4. Working capital turnover: Fabrinet's working capital turnover has remained relatively stable around 2.00 to 2.32. This ratio reflects the company's ability to generate sales from working capital, indicating efficient utilization of resources.
Overall, the activity ratios suggest that Fabrinet effectively manages its inventory, receivables, payables, and working capital to support its operations and maintain a healthy cash flow.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.91 | 67.94 | 63.65 | 68.72 | 82.13 | 89.98 | 90.55 | 92.82 | 102.52 | 86.09 | 95.77 | 96.95 | 92.93 | 82.24 | 89.78 | 83.23 | 77.67 | 72.76 | 74.56 | 82.55 |
| Days of sales outstanding (DSO) | days | 75.01 | 76.51 | 78.47 | 72.99 | 73.38 | 76.53 | 76.65 | 71.08 | 70.88 | 74.55 | 66.91 | 63.72 | 65.36 | 68.56 | 73.30 | 68.14 | 66.02 | 68.42 | 69.41 | 62.17 |
| Number of days of payables | days | 63.82 | 64.19 | 57.79 | 55.77 | 60.25 | 70.80 | 74.00 | 71.96 | 80.90 | 76.57 | 77.26 | 77.87 | 76.29 | 64.18 | 71.67 | 69.68 | 63.09 | 60.18 | 59.50 | 64.74 |
Fabrinet's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, reflect the efficiency of its operations and management of working capital.
1. Days of Inventory on Hand (DOH):
- Fabrinet's average DOH over the periods analyzed is around 83 days. This indicates that, on average, the company holds its inventory for approximately 83 days before it is sold.
- The DOH fluctuates over time, with values ranging from a low of 63.65 days to a high of 102.52 days. A lower DOH suggests efficient inventory management, while a higher DOH may indicate excess or slow-moving inventory.
2. Days of Sales Outstanding (DSO):
- Fabrinet's average DSO over the periods analyzed is approximately 71 days. This means that, on average, it takes the company around 71 days to collect payment after making a sale.
- The DSO varies from 63.72 days to 78.47 days across the periods. A lower DSO is desirable as it signifies quicker cash collection and efficient accounts receivable management.
3. Number of Days of Payables:
- Fabrinet's average number of days of payables is about 68 days. This indicates that, on average, the company takes around 68 days to pay its suppliers.
- The number of days of payables ranges between 55.77 days and 80.90 days. A longer payment period can indicate better cash flow management but may also suggest strained supplier relationships.
Overall, monitoring these activity ratios can help assess Fabrinet's operational efficiency, inventory management effectiveness, collection policies, and supplier payment practices over time. fluctuations in these ratios may indicate changes in the company's working capital efficiency and overall financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.38 | 9.19 | 8.89 | 8.72 | 8.52 | 8.36 | 8.19 | 8.05 | 7.74 | 7.49 | 7.22 | 7.31 | 7.79 | 7.76 | 7.50 | 7.38 | 7.19 | 7.53 | 7.51 | 7.57 |
| Total asset turnover | 1.23 | 1.25 | 1.27 | 1.32 | 1.34 | 1.27 | 1.26 | 1.27 | 1.23 | 1.23 | 1.20 | 1.18 | 1.16 | 1.18 | 1.14 | 1.18 | 1.19 | 1.23 | 1.24 | 1.25 |
Fabrinet's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company's asset utilization over time.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates revenue from its fixed assets. Fabrinet's fixed asset turnover ratio has consistently remained high, ranging from 7.19 to 9.38 over the analyzed periods.
- The increasing trend in the fixed asset turnover ratio indicates that Fabrinet has been efficient in generating sales relative to its investment in fixed assets. This suggests that the company is effectively utilizing its plant, property, and equipment to generate revenue.
2. Total Asset Turnover:
- The total asset turnover ratio measures the ability of a company to generate sales from its total assets. Fabrinet's total asset turnover ratio has fluctuated between 1.14 and 1.34 during the evaluated periods.
- Despite some fluctuations, the trend shows that Fabrinet has generally maintained a stable total asset turnover ratio. This indicates that the company has been efficient in generating revenue from its total assets, including both fixed and current assets.
Overall, the high fixed asset turnover and relatively stable total asset turnover ratios suggest that Fabrinet has been effectively managing its assets to generate revenue. The consistency in these ratios over time indicates a strong operational efficiency in utilizing both fixed and total assets to drive sales growth.