Fabrinet (FN)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,419,330 | 2,882,970 | 2,645,240 | 2,262,220 | 1,879,350 |
| Total current assets | US$ in thousands | 2,428,840 | 2,012,690 | 1,652,540 | 1,525,170 | 1,352,510 |
| Total current liabilities | US$ in thousands | 809,842 | 557,942 | 481,885 | 538,487 | 444,358 |
| Working capital turnover | 2.11 | 1.98 | 2.26 | 2.29 | 2.07 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,419,330K ÷ ($2,428,840K – $809,842K)
= 2.11
The analysis of Fabrinet's working capital turnover over the period from June 30, 2021, to June 30, 2025, reveals fluctuations in the company's efficiency in utilizing its working capital to generate net sales.
In the fiscal year ending June 30, 2021, the working capital turnover ratio stood at 2.07, indicating that for each dollar of working capital, Fabrinet generated approximately $2.07 in sales. This ratio increased to 2.29 in the subsequent year, June 30, 2022, suggesting an improvement in operational efficiency or better management of working capital relative to revenue.
However, the ratio slightly declined to 2.26 by June 30, 2023, reflecting a minor reduction in efficiency, potentially due to changes in sales levels, working capital components, or both. The downward trend continued into the fiscal year ending June 30, 2024, with the ratio decreasing more noticeably to 1.98, indicating a reduction in sales generated per unit of working capital. This could imply either increased working capital requirements without a proportional increase in sales or a decline in sales efficiency.
By June 30, 2025, the ratio experienced a modest recovery to 2.11, slightly improving from the previous year but remaining below the peak observed in 2022. This suggest that the company's working capital management and sales generation efficiency are somewhat cyclical, with recent years showing a trend toward lower ratios, potentially requiring attention towards optimizing working capital utilization.
Overall, the data indicates that Fabrinet's working capital turnover experienced periods of improvement, peaking in 2022, followed by declines and a modest rebound in 2025. The fluctuations highlight the importance of effective working capital management to sustain or enhance sales productivity.
Peer comparison
Jun 30, 2025