Fabrinet (FN)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 409,973 | 231,368 | 197,996 | 302,969 | 225,430 |
| Short-term investments | US$ in thousands | 448,630 | 319,100 | 280,157 | 244,963 | 262,693 |
| Receivables | US$ in thousands | 592,452 | 531,767 | 439,330 | 336,547 | 296,975 |
| Total current liabilities | US$ in thousands | 557,942 | 481,885 | 538,487 | 444,358 | 334,421 |
| Quick ratio | 2.60 | 2.25 | 1.70 | 1.99 | 2.35 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($409,973K
+ $448,630K
+ $592,452K)
÷ $557,942K
= 2.60
The quick ratio of Fabrinet has shown a general upward trend over the past five years, reflecting an improving liquidity position. The ratio stood at 2.60 as of June 30, 2024, indicating that the company had $2.60 of liquid assets available to cover each dollar of current liabilities. This represents a significant improvement compared to the quick ratios of 2.25 in 2023, 1.70 in 2022, and 1.99 in 2021. The peak ratio of 2.60 in 2024 suggests that the company has a strong ability to meet its short-term obligations using its most liquid assets, such as cash and marketable securities. Overall, the increasing trend in the quick ratio indicates that Fabrinet has been effectively managing its liquidity and is in a sound financial position to meet its short-term obligations.
Peer comparison
Jun 30, 2024