Fabrinet (FN)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 332,527 | 326,386 | 326,012 | 308,486 | 296,181 | 275,901 | 254,340 | 248,387 | 247,913 | 243,316 | 234,622 | 220,344 | 200,380 | 186,604 | 173,436 | 159,941 | 148,341 | 133,952 | 124,726 | 120,573 |
| Total stockholders’ equity | US$ in thousands | 1,981,810 | 1,907,190 | 1,842,970 | 1,826,600 | 1,745,740 | 1,660,240 | 1,611,380 | 1,530,170 | 1,468,660 | 1,441,580 | 1,384,130 | 1,302,370 | 1,253,680 | 1,228,730 | 1,199,190 | 1,146,000 | 1,112,520 | 1,073,510 | 1,036,670 | 1,000,700 |
| 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% |
June 30, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $332,527K ÷ $1,981,810K
= 16.78%
The analysis of Fabrinet’s return on equity (ROE) over the specified period reveals a general upward trend from September 30, 2020, through December 31, 2024, followed by a slight decline and subsequent stabilization. Initially, the ROE was approximately 12.05% in September 2020, exhibiting minimal fluctuation through December 2021, where it increased gradually from approximately 12.03% to 14.46%. Between March 2022 and September 2022, the ROE continued to rise, reaching nearly 16.92%, reflecting improved profitability and efficient utilization of shareholders’ equity.
From September 2022 onwards, the ROE maintained an upward trajectory, peaking at about 16.97% in June 2024. This indicates a sustained enhancement in the company's ability to generate profits relative to shareholders' equity over this period. However, in the subsequent months, a slight decline was observed, with the ROE decreasing to 16.89% by September 2024. The subsequent quarter saw a recovery to approximately 17.69%, marking the highest point within the analyzed timeframe. Following this peak, a modest decrease to 17.11% in March 2025 was noted, and further decline to 16.78% in June 2025.
Overall, Fabrinet’s ROE demonstrates a consistent trend of growth over the two-year span, reflecting improved operational efficiency, profitability, or both. The incremental increases suggest effective management and favorable market conditions, whereas the minor recent declines may point to temporary factors or increased equity base that modestly impacted return levels. The overall trajectory indicates a positive long-term view, with the company maintaining a strong return relative to shareholders’ equity.