Fabrinet (FN)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 0 | 15,202 | 27,358 | 39,514 |
| Total assets | US$ in thousands | 2,338,520 | 1,979,650 | 1,835,640 | 1,616,120 | 1,381,980 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.01 | 0.02 | 0.03 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $2,338,520K
= 0.00
The debt-to-assets ratio of Fabrinet has exhibited a declining trend over the past five years, decreasing from 0.03 in June 2020 to 0.00 in June 2024. This indicates that the company has been successful in reducing its reliance on debt to finance its operations and investments, and has improved its financial health in terms of solvency and risk management.
A debt-to-assets ratio of 0.00 in June 2024 suggests that Fabrinet has no debt in relation to its total assets, which can be considered a very strong financial position. This implies that the company's assets are primarily financed by equity and retained earnings, reducing the financial risk associated with debt repayment obligations.
Overall, the decreasing trend in Fabrinet's debt-to-assets ratio signifies an improvement in the company's financial leverage and ability to withstand economic fluctuations and unexpected challenges in the future. This may enhance investor confidence and potentially support future growth opportunities.
Peer comparison
Jun 30, 2024