Fabrinet (FN)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 277,605 | 261,568 | 207,398 | 151,584 | 122,286 |
| Long-term debt | US$ in thousands | — | 0 | 15,202 | 27,358 | 39,514 |
| Total stockholders’ equity | US$ in thousands | 1,745,740 | 1,468,660 | 1,253,680 | 1,112,520 | 974,409 |
| Return on total capital | 15.90% | 17.81% | 16.34% | 13.30% | 12.06% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $277,605K ÷ ($—K + $1,745,740K)
= 15.90%
Fabrinet's return on total capital has shown a positive trend over the past five years, with a steady increase from 12.06% in 2020 to 15.90% in 2024. This indicates that the company has been effectively utilizing its total capital to generate profits for its stakeholders. The consistent improvement in return on total capital reflects increasing efficiency in capital allocation and operational performance. However, it is important to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and future growth prospects.
Peer comparison
Jun 30, 2024