Fabrinet (FN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 306,425 | 306,905 | 403,662 | 400,684 | 409,973 | 385,111 | 334,053 | 308,338 | 231,368 | 230,743 | 250,829 | 255,260 | 198,216 | 269,140 | 276,531 | 269,911 | 302,969 | 247,011 | 219,221 | 189,201 |
| Short-term investments | US$ in thousands | 627,819 | 643,772 | 530,969 | 508,193 | 448,630 | 408,915 | 406,540 | 362,428 | 319,100 | 307,980 | 276,778 | 244,536 | 280,157 | 245,852 | 243,339 | 258,501 | 244,963 | 261,736 | 261,817 | 307,238 |
| 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 |
| Cash ratio | 1.15 | 1.41 | 1.41 | 1.58 | 1.54 | 1.46 | 1.52 | 1.47 | 1.14 | 0.97 | 0.96 | 0.95 | 0.89 | 1.02 | 1.04 | 1.10 | 1.23 | 1.39 | 1.22 | 1.40 |
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 analysis of Fabrinet's cash ratio over the specified period reveals several notable trends and insights. The cash ratio, which measures a company's ability to cover its current liabilities with cash and cash equivalents, has exhibited fluctuations from September 2020 through June 2025.
Initially, the cash ratio was relatively high at 1.40 as of September 30, 2020, indicating the company maintained sufficient cash reserves to meet its short-term liabilities. Thereafter, there was a slight decline, with the ratio decreasing to 1.22 by December 31, 2020, suggesting a modest reduction in liquidity cushion during this period.
From March 2021 to December 2021, the cash ratio fluctuated within a narrow range, decreasing gradually from approximately 1.39 in March 2021 to 1.04 by the end of 2021. This trend indicates a slight erosion in liquidity stance, potentially reflective of operational investments or strategic cash utilization.
The subsequent period from March 2022 through June 2023 shows a continued decline in the cash ratio, reaching a low of 0.89 as of June 30, 2022. This decline suggests increasing reliance on other forms of current assets or increased liabilities, or possibly strategic deployment of cash into investments or operational expansion. However, the ratio demonstrates some stabilization, with values around 0.95 to 1.02 in late 2022 and early 2023, indicating a partial recovery in liquidity levels.
From June 2023 onward, the cash ratio exhibits a notable upward trend, reaching 1.47 as of September 30, 2023, and further increasing to 1.52 by December 31, 2023. This resurgence reflects an enhanced liquidity position, potentially due to cautious cash management or improved financial health. The upward momentum continues into early 2024, with the ratio reaching 1.58 in September 2024, the highest point within the period analyzed. This suggests that Fabrinet prioritized strengthening its cash reserves during this timeframe.
Toward the end of the period, the cash ratio slightly declined again, with figures of 1.41 in December 2024 and March 2025, and a decrease to 1.15 by June 2025. Despite this minor decline, the ratio remains above 1.0, indicating that the company's liquidity is generally maintained at a level that exceeds short-term obligations, though the buffering capacity has narrowed relative to the peak levels observed in late 2023 and early 2024.
Overall, Fabrinet's cash ratio has demonstrated a pattern of initial stability, a period of decline and stabilization, followed by a significant recovery and subsequent moderation. The fluctuations suggest strategic adjustments in cash management and liquidity positioning aligned with operational and financial priorities over time. The prevailing trend indicates a generally healthy liquidity profile, with a recent emphasis on maintaining substantial cash reserves to support ongoing operational requirements and financial stability.