Fabrinet (FN)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.35% | 12.71% | 12.32% | 11.78% | 11.34% |
| Operating profit margin | 9.63% | 9.52% | 9.04% | 8.02% | 7.15% |
| Pretax margin | 10.80% | 9.83% | 9.15% | 8.01% | 7.26% |
| Net profit margin | 10.27% | 9.37% | 8.86% | 7.89% | 6.91% |
Fabrinet's profitability ratios show a positive trend over the past five years. The gross profit margin has been relatively stable, ranging between 11.34% to 12.71%, indicating the company is effectively managing its cost of goods sold.
The operating profit margin, which reflects the efficiency of the company's operations in generating profits before interest and taxes, has also improved steadily from 7.15% in 2020 to 9.63% in 2024. This indicates that Fabrinet has been able to control its operating expenses and enhance operational efficiency.
The pretax margin, representing the proportion of income before taxes to total revenue, shows a consistent increase over the period, from 7.26% in 2020 to 10.80% in 2024. This suggests that Fabrinet has been successful in managing its overall expenses and increasing profitability.
The net profit margin, which indicates the percentage of revenue that translates into net income, has also shown a positive trend, increasing from 6.91% in 2020 to 10.27% in 2024. This improvement reflects the company's ability to effectively manage its expenses, taxes, and interest payments, resulting in higher profitability for shareholders.
Overall, Fabrinet's profitability ratios demonstrate a successful performance in managing costs, enhancing operational efficiency, and generating higher profits over the years, which bodes well for its financial health and long-term sustainability.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.87% | 12.71% | 11.14% | 9.33% | 8.50% |
| Return on assets (ROA) | 12.67% | 12.52% | 10.92% | 9.18% | 8.21% |
| Return on total capital | 15.90% | 17.81% | 16.34% | 13.30% | 12.06% |
| Return on equity (ROE) | 16.97% | 16.88% | 15.98% | 13.33% | 11.65% |
Fabrinet's profitability ratios have shown a generally positive trend over the past five years. The operating return on assets (Operating ROA) has fluctuated slightly, ranging from 8.50% in 2020 to 12.71% in 2023, with the latest figure at 11.87% in 2024. This indicates the company's ability to generate operating profits from its assets, with a slight decrease in the most recent period.
The Return on assets (ROA) has been relatively stable, with a slight increase from 8.21% in 2020 to 12.67% in 2024. This ratio reflects the company's overall profitability in relation to its total assets, showing an improvement over the years.
The Return on total capital has exhibited an increasing trend, starting from 12.06% in 2020 to 15.90% in 2024. This ratio signifies the company's efficiency in generating returns from both its debt and equity capital, reflecting a positive trajectory.
The Return on equity (ROE) has also shown a consistent growth pattern, rising from 11.65% in 2020 to 16.97% in 2024. This metric highlights the company's profitability based on the shareholders' equity, demonstrating an improvement in the company's ability to generate returns for its equity investors.
Overall, Fabrinet's profitability ratios suggest that the company has been effectively utilizing its assets and capital to generate profits, with a notable improvement in its return on equity over the analyzed period.