Fabrinet (FN)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 332,527 | 296,181 | 247,913 | 200,380 | 148,341 |
| Total assets | US$ in thousands | 2,831,430 | 2,338,520 | 1,979,650 | 1,835,640 | 1,616,120 |
| ROA | 11.74% | 12.67% | 12.52% | 10.92% | 9.18% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $332,527K ÷ $2,831,430K
= 11.74%
The analysis of Fabrinet’s Return on Assets (ROA) over the specified periods indicates a generally positive trend in the company's efficiency in generating profit from its assets. As of June 30, 2021, the ROA stood at 9.18%, reflecting the company's profitability relative to its asset base at that time. By June 30, 2022, the ROA increased substantially to 10.92%, suggesting improved asset utilization and potentially higher operating margins or increased net income relative to assets. This upward trajectory continued into June 30, 2023, with the ROA reaching 12.52%, indicating a consistent enhancement in the company's ability to leverage its assets for profit generation.
In the subsequent year, the ROA experienced a modest increase to 12.67% by June 30, 2024. This slight uptick suggests that Fabrinet maintained its efficiency levels, continuing to capitalize on its asset base effectively. However, by June 30, 2025, the ROA declined slightly to 11.74%, which may indicate a temporary shift in operational performance, possibly due to increased asset investments, changes in profit margins, or other financial factors influencing net income relative to total assets.
Overall, the pattern of ROA improvement from 2021 through 2024 signals a period of strengthening operational efficiency, with a slight decrease in 2025. This fluctuation underscores the importance of monitoring both asset utilization and profitability metrics for assessing the company's ongoing financial health and operational effectiveness.