Fabrinet (FN)
Working capital 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 |
| Total current assets | US$ in thousands | 2,012,690 | 1,916,140 | 1,806,360 | 1,691,960 | 1,652,540 | 1,704,610 | 1,647,770 | 1,551,910 | 1,525,170 | 1,470,150 | 1,439,990 | 1,388,600 | 1,352,510 | 1,255,170 | 1,251,730 | 1,180,420 | 1,135,450 | 1,092,860 | 1,070,830 | 1,051,160 |
| Total current liabilities | US$ in thousands | 557,942 | 544,267 | 486,777 | 455,433 | 481,885 | 554,989 | 549,595 | 526,355 | 538,487 | 502,659 | 500,037 | 479,219 | 444,358 | 366,240 | 395,035 | 355,449 | 334,421 | 327,451 | 313,380 | 323,421 |
| 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 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,882,967K ÷ ($2,012,690K – $557,942K)
= 1.98
Fabrinet's working capital turnover has shown relatively stable performance over the periods analyzed. The ratio has fluctuated within a narrow range between 1.98 and 2.32 with some minor variations.
A working capital turnover ratio of around 2 indicates that, on average, Fabrinet is able to generate two dollars in revenue for every dollar tied up in working capital. This suggests efficient management of its working capital resources.
The consistency in the ratio over time is a positive indicator of Fabrinet's ability to efficiently utilize its current assets and liabilities to generate sales. A higher working capital turnover ratio generally signals better liquidity management and operational efficiency.
Overall, the trend of Fabrinet's working capital turnover ratio indicates a healthy balance between working capital management and revenue generation, which is a positive sign for the company's financial health and operational effectiveness.
Peer comparison
Jun 30, 2024