Fabrinet (FN)
Working capital 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 |
| Total current assets | US$ in thousands | 2,012,690 | 1,652,540 | 1,525,170 | 1,352,510 | 1,135,450 |
| Total current liabilities | US$ in thousands | 557,942 | 481,885 | 538,487 | 444,358 | 334,421 |
| Working capital turnover | 1.98 | 2.26 | 2.29 | 2.07 | 2.05 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,882,970K ÷ ($2,012,690K – $557,942K)
= 1.98
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. Fabrinet's working capital turnover has fluctuated over the past five years, ranging from 1.98 to 2.29.
In general, a higher working capital turnover ratio indicates that the company is effectively managing its working capital to support sales activities. A decrease in the ratio could suggest inefficiencies in working capital management or a decrease in sales relative to the working capital employed.
Fabrinet's working capital turnover ratio has shown variability over the years, which could be a result of changes in the company's operational efficiency, sales levels, or working capital management strategies. Further analysis of the company's financial and operational performance is needed to understand the factors contributing to these fluctuations and to assess the overall effectiveness of the company's working capital management practices.
Peer comparison
Jun 30, 2024