Fabrinet (FN)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 277,605 | 251,704 | 204,518 | 150,753 | 117,402 |
| Total assets | US$ in thousands | 2,338,520 | 1,979,650 | 1,835,640 | 1,616,120 | 1,381,980 |
| Operating ROA | 11.87% | 12.71% | 11.14% | 9.33% | 8.50% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $277,605K ÷ $2,338,520K
= 11.87%
Operating Return on Assets (Operating ROA) is a financial ratio that indicates how efficiently a company is generating operating profit from its assets. It is calculated by dividing operating income by average total assets.
For Fabrinet, the Operating ROA has been fluctuating over the past five years, as follows:
- In 2024, the Operating ROA was 11.87%, showing a slight decrease from the previous year.
- In 2023, the Operating ROA was 12.71%, reaching its peak over the period analyzed.
- In 2022, the Operating ROA was 11.14%, marking a moderate decrease from the previous year.
- In 2021, the Operating ROA was 9.33%, indicating an increase compared to the prior year.
- In 2020, the Operating ROA was 8.50%, showing a consistent upward trend in the ratio.
The trend in Fabrinet's Operating ROA suggests that the company has been effectively utilizing its assets to generate operating income, with some fluctuations in efficiency over the years. The highest Operating ROA in 2023 may indicate improved profitability from its assets, while the fluctuations in other years suggest varying levels of operational efficiency. It is essential for Fabrinet to closely monitor and manage its asset utilization to maintain or improve its Operating ROA in the future.
Peer comparison
Jun 30, 2024