Fabrinet (FN)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,882,970 | 2,645,240 | 2,262,220 | 1,879,350 | 1,641,840 |
| Receivables | US$ in thousands | 592,452 | 531,767 | 439,330 | 336,547 | 296,975 |
| Receivables turnover | 4.87 | 4.97 | 5.15 | 5.58 | 5.53 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,882,970K ÷ $592,452K
= 4.87
Fabrinet's receivables turnover ratio has shown a slight decline over the past five years, decreasing from 5.58 in 2021 to 4.87 in 2024. This indicates that the company is collecting its accounts receivables less frequently in recent years. A lower turnover ratio may suggest that the company is taking longer to collect payment from customers, which could potentially lead to cash flow challenges or indicate issues with credit policies or customer payment patterns. Fabrinet may need to review and improve its credit control and collection processes to accelerate receivables turnover and enhance its liquidity position.
Peer comparison
Jun 30, 2024