Fabrinet (FN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 241,077 | 326,069 | 331,147 | 309,260 | 298,800 | 280,871 | 278,062 | 271,343 | 263,237 | 252,881 | 238,842 | 224,137 | 204,956 | 191,084 | 175,944 | 160,215 | 150,822 | 139,939 | 128,646 | 124,875 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 12.16% | 17.10% | 17.97% | 16.93% | 17.12% | 16.92% | 17.26% | 17.73% | 17.92% | 17.54% | 17.26% | 17.21% | 16.35% | 15.55% | 14.67% | 13.98% | 13.56% | 13.04% | 12.41% | 12.48% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $241,077K ÷ ($—K + $1,981,810K)
= 12.16%
The analysis of Fabrinet's return on total capital (ROTC) over the observed period reveals a generally upward trend with some fluctuations. Starting from a value of 12.48% as of September 30, 2020, the ROTC experienced a modest decline to 12.41% by December 31, 2020. Subsequently, the metric demonstrated a consistent upward trajectory, reaching 13.56% by June 30, 2021. This positive momentum continued, with the ROTC advancing to 13.98% at the end of September 2021 and further increasing to 14.67% by December 31, 2021.
The upward trend persisted into 2022, with the ROTC rising to 15.55% by March 31, 2022, and then to 16.35% by June 30, 2022. The metric peaked at 17.21% during the third quarter of 2022, and maintained a relatively stable level of around 17.26% at the end of that year. Early 2023 figures indicated continued strength, with the ROTC reaching 17.54% in March 2023 and 17.92% in June 2023. Slight fluctuations are recognized, as the value decreased marginally to 17.73% in the third quarter of 2023 before declining again to 17.26% at the end of December 2023.
In early 2024, the ROTC showed signs of recovery, rising to 16.92% in March and 17.12% in June, with a slight decline to 16.93% in September. Notably, the figure increased again, reaching 17.97% in December 2024. The beginning of 2025 saw a slight decrease to 17.10% in March, followed by a significant drop to 12.16% in June 2025, indicating a substantial reduction in return on total capital.
Overall, Fabrinet’s ROTC reflects a trend of improvement from late 2020 through 2024, suggesting enhanced efficiency in generating returns on its invested capital during this period. The sharp decline in mid-2025 warrants further investigation to understand potential factors influencing this substantial decrease in profitability metrics.
Peer comparison
Jun 30, 2025