Fabrinet (FN)
Quick ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 758,894 | 592,452 | 531,767 | 452,670 | 348,425 |
| Total current liabilities | US$ in thousands | 809,842 | 557,942 | 481,885 | 538,487 | 444,358 |
| Quick ratio | 2.09 | 2.60 | 2.25 | 1.73 | 2.02 |
June 30, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($306,425K
+ $627,819K
+ $758,894K)
÷ $809,842K
= 2.09
The analysis of Fabrinet's quick ratio over the specified periods reveals a generally stable and improving liquidity position. Starting with a quick ratio of 2.02 as of June 30, 2021, the ratio declined slightly to 1.73 by June 30, 2022, indicating a modest reduction in the company's ability to meet short-term obligations with its most liquid assets. However, the ratio experienced a significant increase to 2.25 by June 30, 2023, reflecting an enhancement in liquidity and the company's capacity to cover current liabilities without relying on inventory. This upward trend continued into the subsequent year, reaching 2.60 as of June 30, 2024, further strengthening the company's liquidity position. Although there was a slight decline to 2.09 by June 30, 2025, the ratio remained well above 2.0, signaling that Fabrinet maintains a robust capacity for short-term financial flexibility. Overall, the company's quick ratios across the analyzed periods suggest a consistent ability to meet immediate liabilities promptly, with notable improvements observed up to mid-2024 before a minor decline in the following year.