Fabrinet (FN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 409,973 | 385,111 | 334,053 | 308,338 | 231,368 | 230,743 | 250,829 | 255,260 | 197,996 | 269,140 | 276,531 | 269,911 | 302,969 | 247,011 | 219,221 | 189,201 | 225,430 | 224,138 | 220,031 | 168,535 |
| Short-term investments | US$ in thousands | 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 | 262,693 | 233,622 | 222,805 | 238,266 |
| 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 |
| Cash ratio | 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 | 1.46 | 1.40 | 1.41 | 1.26 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($409,973K
+ $448,630K)
÷ $557,942K
= 1.54
The cash ratio of Fabrinet has demonstrated fluctuations over the past several quarters. The cash ratio measures the company's ability to meet its short-term obligations using its cash and cash equivalents.
In the most recent quarter, as of June 30, 2024, the cash ratio stood at 1.54, indicating that Fabrinet had $1.54 in cash and cash equivalents for every dollar of current liabilities. This represents a strong liquidity position, suggesting the company has an ample buffer to cover its short-term obligations.
Looking at the trend over previous quarters, we observe some variability in the cash ratio. The ratio has generally been above 1, indicating that Fabrinet has maintained a healthy level of liquidity. In particular, there was a significant improvement in liquidity from the third quarter of 2023 to the first quarter of 2024, with the cash ratio increasing from 1.14 to 1.46.
Overall, the cash ratio analysis suggests that Fabrinet has managed its cash resources effectively and has the capacity to meet its short-term financial commitments. However, it is essential for the company to sustain this liquidity position to weather any unforeseen challenges in the future.
Peer comparison
Jun 30, 2024