Fabrinet (FN)
Current ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,012,690 | 1,652,540 | 1,525,170 | 1,352,510 | 1,135,450 |
| Total current liabilities | US$ in thousands | 557,942 | 481,885 | 538,487 | 444,358 | 334,421 |
| Current ratio | 3.61 | 3.43 | 2.83 | 3.04 | 3.40 |
June 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,012,690K ÷ $557,942K
= 3.61
The current ratio of Fabrinet has shown a consistent trend of improvement over the past five years, indicating the company's strengthening liquidity position. As of June 30, 2024, the current ratio stands at 3.61, which signifies that the company has $3.61 in current assets for every $1 in current liabilities, demonstrating a robust ability to meet its short-term obligations.
The upward trajectory in the current ratio from 3.40 in 2020 to 3.61 in 2024 highlights the company's efficient management of current assets relative to current liabilities. This trend suggests that Fabrinet has been effectively managing its working capital, maintaining a healthy balance between current assets and liabilities.
The current ratio exceeding 3 for the past three years indicates that Fabrinet has a comfortable cushion of current assets to cover its short-term debts, reflecting stability and financial strength. Investors and creditors may perceive a higher current ratio as a positive signal of the company's liquidity and ability to weather potential financial challenges.
Overall, Fabrinet's current ratio demonstrates a consistently strong liquidity position, which bodes well for its financial health and ability to meet its short-term obligations efficiently.
Peer comparison
Jun 30, 2024