Fabrinet (FN)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 299,795 | 293,842 | 274,374 | 266,082 | 261,568 | 252,379 | 242,135 | 227,809 | 207,398 | 189,874 | 175,617 | 161,897 | 151,584 | 139,843 | 129,935 | 126,747 | 122,286 | 129,263 | 131,352 | 131,780 |
| Long-term debt | US$ in thousands | — | — | — | — | 0 | 3,039 | 6,078 | 9,117 | 15,202 | 18,241 | 21,279 | 24,319 | 27,358 | 30,397 | 33,436 | 36,475 | 39,514 | 42,553 | 45,592 | 48,631 |
| Total stockholders’ equity | US$ in thousands | 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 | 974,409 | 933,409 | 928,327 | 890,695 |
| Return on total capital | 17.17% | 17.70% | 17.03% | 17.39% | 17.81% | 17.47% | 17.42% | 17.37% | 16.34% | 15.23% | 14.39% | 13.83% | 13.30% | 12.67% | 12.14% | 12.22% | 12.06% | 13.24% | 13.49% | 14.03% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $299,795K ÷ ($—K + $1,745,740K)
= 17.17%
Fabrinet's return on total capital has shown a generally increasing trend over the past two years, with a slight dip in the most recent quarter reported. The company's return on total capital ranged from 12.06% to 17.81% over the past eight quarters, reflecting fluctuations in the effectiveness of the company in generating returns from its total capital employed.
The return on total capital peaked at 17.81% in the second quarter of 2023 and has since hovered around the mid to high 17% range, indicating the company's ability to efficiently utilize its total capital to generate profits. However, the most recent quarter's return of 17.17% shows a slight decrease compared to the previous quarter.
Overall, Fabrinet's return on total capital performance suggests that the company has been able to effectively manage its capital to generate returns for its shareholders, with room for improvement in maintaining a consistent upward trajectory in the future.
Peer comparison
Jun 30, 2024