Fabrinet (FN)
Working capital turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,419,327 | 3,262,896 | 3,122,632 | 3,001,718 | 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 |
| Total current assets | US$ in thousands | 2,428,840 | 2,244,440 | 2,199,010 | 2,108,940 | 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 |
| Total current liabilities | US$ in thousands | 809,842 | 675,047 | 663,160 | 575,978 | 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 |
| Working capital turnover | 2.11 | 2.08 | 2.03 | 1.96 | 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 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,419,327K ÷ ($2,428,840K – $809,842K)
= 2.11
The analysis of Fabrinet's working capital turnover over the period from September 2020 through June 2025 reveals a pattern of fluctuations with an overall tendency towards stabilization near the 2.0 to 2.3 range. Initially, the ratio decreased slightly from 2.04 in September 2020 to 1.99 at the end of December 2020, then remained relatively stable through March 2021 at 2.00. Thereafter, a gradual upward trend was observed, reaching a peak of approximately 2.32 in September 2022. This suggests an improvement in the company's efficiency in utilizing working capital to generate sales during this period.
From late 2022 onward, the ratio experienced minor fluctuations, with a slight decline to 2.25 at the end of 2022 and a plateau around 2.24 in the first quarter of 2023. Subsequently, the ratio maintained a consistent level around 2.16 to 2.26 until mid-2024, indicating a period of relative stability. Starting in late 2024, the ratio exhibited a modest decline, reaching approximately 1.96 in September 2024, followed by a slight resurgence to around 2.11 in June 2025.
Overall, Fabrinet's working capital turnover demonstrates a pattern of moderate variability, largely oscillating within a narrow band centered near 2.00 to 2.30. The fluctuations may reflect changes in operational efficiency, inventory management, receivables and payables dynamics, or shifts in sales volume relative to working capital investments. The general trend indicates that the company has maintained a relatively stable efficiency level in managing its working capital for the observed period, with periods of both improvement and slight contraction.
Peer comparison
Jun 30, 2025