Fabrinet (FN)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,831,430 | 2,338,520 | 1,979,650 | 1,835,640 | 1,616,120 |
| Total stockholders’ equity | US$ in thousands | 1,981,810 | 1,745,740 | 1,468,660 | 1,253,680 | 1,112,520 |
| Financial leverage ratio | 1.43 | 1.34 | 1.35 | 1.46 | 1.45 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,831,430K ÷ $1,981,810K
= 1.43
The financial leverage ratio of Fabrinet exhibits fluctuations over the specified period from June 30, 2021, to June 30, 2025. At the end of June 2021, the ratio stood at 1.45, indicating the level of debt utilized relative to equity at that time. This ratio experienced a slight increase to 1.46 by June 30, 2022, suggesting a marginal rise in leverage, possibly reflecting increased borrowing or a decrease in equity.
Between June 2022 and June 2023, the ratio decreased to 1.35. This decline indicates a reduction in leverage, which could be due to debt repayment, an increase in equity, or both. The trend of decreasing leverage continued into June 2024, with the ratio at 1.34, maintaining a relatively stable but lower leverage position.
However, a slight uptick in the ratio is observed by June 2025, reaching 1.43. This increase suggests a modest escalation in leverage, which might result from increased borrowing or diminished equity levels. Overall, the ratio demonstrates a pattern of minor fluctuations, with a temporary decrease in leverage around 2023 and early 2024, followed by a slight return toward higher leverage levels in 2025.
These changes imply that Fabrinet has maintained a relatively moderate level of financial leverage throughout this period, with the ratio generally staying within a narrow range around 1.3 to 1.5. The observed trend reflects an overall stability in the company's capital structure, with some adjustments likely aimed at optimizing leverage for operational or strategic reasons.
Peer comparison
Jun 30, 2025