Fabrinet (FN)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,882,967 | 2,785,577 | 2,719,323 | 2,675,285 | 2,645,237 | 2,577,240 | 2,476,354 | 2,374,331 | 2,262,224 | 2,183,917 | 2,098,839 | 1,986,033 | 1,879,350 | 1,774,896 | 1,706,789 | 1,679,179 | 1,641,836 | 1,641,850 | 1,629,591 | 1,606,454 |
| Receivables | US$ in thousands | 592,452 | 583,882 | 584,614 | 535,006 | 531,767 | 540,343 | 520,024 | 462,352 | 439,330 | 446,052 | 384,725 | 346,689 | 336,547 | 333,389 | 342,740 | 313,472 | 296,975 | 307,777 | 309,889 | 273,616 |
| 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 |
June 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,882,967K ÷ $592,452K
= 4.87
The receivables turnover ratio for Fabrinet has been relatively stable over the past eight quarters, ranging from 4.65 to 5.15. This indicates that, on average, Fabrinet is able to collect its accounts receivables multiple times a year.
The company's ability to efficiently collect its outstanding receivables improved in the most recent quarters, with the ratio increasing to 5.15 in Jun 30, 2024, compared to 4.87 in Jun 30, 2023. This suggests that Fabrinet has been managing its accounts receivables effectively or potentially tightening its credit policies to ensure timely collections.
Overall, the trend in the receivables turnover ratio for Fabrinet shows a consistent performance in managing its receivables, albeit with some fluctuations. As long as the company can maintain or improve this ratio, it indicates that its credit and collection processes are effective in converting credit sales into cash efficiently.
Peer comparison
Jun 30, 2024