Fabrinet (FN)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.09% | 12.09% | 12.27% | 12.35% | 12.35% | 12.42% | 12.54% | 12.63% | 12.71% | 12.72% | 12.62% | 12.50% | 12.27% | 12.12% | 11.95% | 11.81% | 11.78% | 11.66% | 11.39% | 11.35% |
| Operating profit margin | 9.49% | 9.46% | 9.64% | 9.68% | 9.63% | 9.54% | 9.42% | 9.48% | 9.52% | 9.53% | 9.59% | 9.37% | 8.99% | 8.78% | 8.37% | 8.06% | 8.02% | 7.62% | 7.31% | 7.21% |
| Pretax margin | 10.39% | 10.63% | 11.01% | 10.73% | 10.80% | 10.53% | 10.06% | 9.90% | 9.83% | 9.74% | 9.74% | 9.56% | 9.15% | 8.66% | 8.33% | 8.11% | 8.01% | 7.82% | 7.56% | 7.49% |
| Net profit margin | 9.72% | 10.00% | 10.44% | 10.28% | 10.27% | 9.90% | 9.35% | 9.28% | 9.37% | 9.44% | 9.47% | 9.28% | 8.86% | 8.54% | 8.26% | 8.05% | 7.89% | 7.55% | 7.31% | 7.18% |
The analysis of Fabrinet's profitability ratios over the period from September 2020 through June 2025 reveals a generally upward trend with signs of gradual stabilization in recent periods.
Gross Profit Margin:
The gross profit margin exhibited a steady increase, beginning at 11.35% as of September 2020 and reaching a peak of approximately 12.72% in March 2023. Following this peak, a slight decline is observed, with the margin decreasing marginally to 12.09% by June 2025. The overall trend indicates improvements in manufacturing efficiency and cost control leading to higher gross profitability, although recent slight declines suggest potential margin compression factors or increased cost pressures.
Operating Profit Margin:
Fabrinet’s operating profit margin demonstrated consistent growth during this timeframe. Starting at 7.21% in September 2020, it increased progressively to approximately 9.54% as of March 2024, with subsequent minor fluctuations around 9.46% to 9.49% up to June 2025. The pattern indicates that the company successfully enhanced its core operational efficiency and control over operating expenses, contributing to improved operating profitability over time.
Pretax Margin:
The pretax margin also trended upwards, increasing from 7.49% in September 2020 to approximately 10.53% in March 2024. Small fluctuations are noted, but the general direction reflects improved profitability before taxes, supported by stronger operational results and potentially favorable non-operational income or expenses. The margin tended to stabilize in the latter periods, hovering slightly below 11%, with a minor decline to 10.39% by June 2025.
Net Profit Margin:
Net profit margins mirror the overall positive trend observed in gross and operating margins. Starting at 7.18% in September 2020, the net margin increased steadily, reaching approximately 10.53% in March 2024. After some fluctuations, the margin remained robust around 10% in the subsequent periods, with a slight decrease to 9.72% in June 2025. This progression indicates effective cost management and operational leverage translating into higher bottom-line profitability.
Summary:
Overall, Fabrinet exhibits a consistent improvement across all profitability ratios over the analyzed period. The gross, operating, pretax, and net profit margins have shown upward trajectories, indicative of better operational efficiency, cost control measures, and profitable growth. The slight erosion in margins observed towards the end of the period may reflect external cost pressures or competitive dynamics but remains at relatively high levels, supporting a positive long-term profit outlook.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.46% | 11.79% | 11.85% | 11.91% | 11.87% | 11.88% | 12.01% | 12.55% | 12.71% | 12.11% | 12.06% | 11.94% | 11.08% | 10.77% | 10.04% | 9.53% | 9.33% | 9.01% | 8.34% | 8.49% |
| Return on assets (ROA) | 11.74% | 12.46% | 12.82% | 12.65% | 12.67% | 12.33% | 11.92% | 12.30% | 12.52% | 11.99% | 11.92% | 11.82% | 10.92% | 10.48% | 9.91% | 9.52% | 9.18% | 8.92% | 8.33% | 8.46% |
| Return on total capital | 12.16% | 17.10% | 17.97% | 16.93% | 17.12% | 16.92% | 17.26% | 17.73% | 17.92% | 17.54% | 17.26% | 17.21% | 16.35% | 15.55% | 14.67% | 13.98% | 13.56% | 13.04% | 12.41% | 12.48% |
| Return on equity (ROE) | 16.78% | 17.11% | 17.69% | 16.89% | 16.97% | 16.62% | 15.78% | 16.23% | 16.88% | 16.88% | 16.95% | 16.92% | 15.98% | 15.19% | 14.46% | 13.96% | 13.33% | 12.48% | 12.03% | 12.05% |
The profitability ratios of Fabrinet over the period from September 2020 to June 2025 reveal a consistent positive trend, indicating a sustained capacity to generate earnings relative to various financial metrics.
Operating Return on Assets (Operating ROA): This ratio demonstrates the company's efficiency in using its assets to generate operating income. Starting at 8.49% in September 2020, it exhibited a gradual increase, reaching a peak of approximately 12.71% as of June 2023 before experiencing a slight decline to around 11.46% by June 2025. The upward trajectory reflects improved operational efficiency and effective asset utilization during this period.
Return on Assets (ROA): This ratio, measuring net income attributable to assets, closely parallels the trend observed in Operating ROA. It began at approximately 8.46% in September 2020, steadily increased to over 12.52% by June 2023, and then experienced a modest decrease, ending at approximately 11.74% in June 2025. This suggests continued profitability, although with some fluctuations likely influenced by macroeconomic or company-specific factors.
Return on Total Capital: Indicating the company's ability to generate returns from all sources of capital, this ratio showed a consistent upward movement from around 12.48% in September 2020 to approximately 17.92% by June 2023, reaching a peak of nearly 17.97% in December 2024 before a decline to approximately 12.16% in June 2025. The overall trend indicates effective leverage and capital management in earlier years, with a notable decline toward mid-2025.
Return on Equity (ROE): This measure reflects the earnings attributable to shareholders’ equity. It increased from roughly 12.05% in September 2020 to peaks near 16.97% around June 2024. Thereafter, a slight decline occurs, with the ratio at approximately 16.78% in June 2025. The trend suggests strong shareholder returns and effective use of equity capital, albeit with some recent reduction.
In summary, Fabrinet’s profitability ratios illustrate a period of steady growth in operational efficiency and capital utilization, culminating in peak profitability around mid-2023 to 2024. The slight declines thereafter indicate potential shifts in profit margins, asset efficiency, or capital structure, yet overall profitability remains at elevated levels compared to the initial period. This pattern aligns with a company that has experienced robust growth and effective management, with recent slight moderation in profits.