Fabrinet (FN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,981,810 | 1,745,740 | 1,468,660 | 1,253,680 | 1,112,520 |
| ROE | 16.78% | 16.97% | 16.88% | 15.98% | 13.33% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $332,527K ÷ $1,981,810K
= 16.78%
The analysis of Fabrinet's return on equity (ROE) over the specified period indicates a generally positive trend in the company’s ability to generate profits relative to shareholders' equity. As of June 30, 2021, the ROE was approximately 13.33%. This figure increased to 15.98% by June 30, 2022, representing a notable improvement in the company's efficiency in utilizing equity to generate earnings. The upward trend continued, with the ROE reaching 16.88% as of June 30, 2023, reflecting ongoing enhancements in operational profitability or effective management of equity investments.
Between June 30, 2023, and June 30, 2024, the ROE remained relatively stable, with a marginal increase to 16.97%, suggesting a period of sustained performance and stability in profitability. However, by June 30, 2025, the ROE experienced a slight decline to 16.78%, which could indicate a slight decrease in profitability margins or a change in the capital structure that impacted overall returns.
Overall, the data indicates that Fabrinet has demonstrated a consistent ability to generate higher returns on shareholders' equity over the analyzed period, with the peak observed around June 2024. The marginal fluctuations thereafter suggest a relatively stable efficiency level in generating profits relative to equity, although future trends should be monitored to ascertain ongoing performance dynamics.