Fabrinet (FN)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 276,994 | 260,980 | 206,461 | 150,796 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,981,810 | 1,745,740 | 1,468,660 | 1,253,680 | 1,112,520 |
| Return on total capital | 0.00% | 15.87% | 17.77% | 16.47% | 13.55% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,981,810K)
= 0.00%
The profitability of Fabrinet, as measured by its return on total capital (ROTC), demonstrates a generally upward trend from June 30, 2021, through June 30, 2024. Specifically, the ROTC increased from 13.55% in 2021 to 16.47% in 2022, indicating improved efficiency in generating profits relative to the total capital employed. This positive trajectory continued into 2023, reaching 17.77%, which suggests an enhancement in capital utilization and operational performance.
However, in the fiscal year ending June 30, 2024, a slight decline is observed, with the ROTC decreasing to 15.87%, implying a reduction in overall profitability compared to the previous year. This decline may reflect factors such as increased costs, strategic adjustments, or market conditions affecting operational efficiency.
Projected data for June 30, 2025, indicates a ROTC of 0.00%, which likely signifies an anomaly or a placeholder rather than a true reflection of operational performance. This substantial drop could result from extraordinary circumstances such as significant impairments, accounting changes, or other non-recurring factors rather than ongoing profitability trends.
Overall, Fabrinet's historical ROTC figures suggest a period of strong and improving profitability over the prior years, with a recent dip that warrants further investigation. The anomalous data point for 2025 underscores the need for cautious interpretation and additional contextual information to understand the underlying factors affecting the company's return on total capital.
Peer comparison
Jun 30, 2025