Fabrinet (FN)
Cash ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 306,425 | 409,973 | 231,368 | 197,996 | 302,969 |
| Short-term investments | US$ in thousands | 627,819 | 448,630 | 319,100 | 280,157 | 244,963 |
| Total current liabilities | US$ in thousands | 809,842 | 557,942 | 481,885 | 538,487 | 444,358 |
| Cash ratio | 1.15 | 1.54 | 1.14 | 0.89 | 1.23 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($306,425K
+ $627,819K)
÷ $809,842K
= 1.15
The cash ratio of Fabrinet has demonstrated fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. At the close of fiscal year 2021, the cash ratio stood at 1.23, indicating that the company's cash and cash equivalents were sufficient to cover its current liabilities comfortably, exceeding by 23%. By June 30, 2022, this ratio declined to 0.89, reflecting a decreased liquidity cushion in terms of cash relative to current liabilities, perhaps indicating increased current liabilities or a reduction in cash holdings.
Subsequently, the cash ratio experienced a modest recovery, rising to 1.14 by June 30, 2023, which suggests an improvement in cash holdings or a reduction in current liabilities, resulting in a more favorable liquidity position. This upward trend continued into the fiscal year ending June 30, 2024, with the cash ratio reaching 1.54, the highest within the analyzed timeframe, demonstrating a robust liquidity position capable of covering current liabilities more than once with cash alone.
However, by June 30, 2025, the cash ratio decreased again to 1.15, indicating a slight weakening from the peak seen in 2024 but still maintaining a healthy liquidity buffer. Overall, Fabrinet's cash ratio has shown periods of both decline and recovery, with a final value that remains above 1.1, suggesting that the company generally maintains a sustainable level of cash to meet its short-term obligations during the analyzed period.