Fabrinet (FN)
Return on equity (ROE)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 296,181 | 247,913 | 200,380 | 148,341 | 113,479 |
| Total stockholders’ equity | US$ in thousands | 1,745,740 | 1,468,660 | 1,253,680 | 1,112,520 | 974,409 |
| ROE | 16.97% | 16.88% | 15.98% | 13.33% | 11.65% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $296,181K ÷ $1,745,740K
= 16.97%
Fabrinet's return on equity (ROE) has shown a positive trend over the past five years, increasing from 11.65% in June 2020 to 16.97% in June 2024. This indicates that the company has been effectively utilizing shareholder equity to generate profits. The consistent improvement in ROE suggests that Fabrinet is becoming more efficient in generating earnings relative to its equity base. This trend may be attributed to successful management strategies, operational efficiency, and effective capital allocation. Overall, the increasing ROE demonstrates the company's ability to create value for its shareholders over time.
Peer comparison
Jun 30, 2024