Fabrinet (FN)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 124 | 1,472 | 432 | 1,100 | 3,044 |
| Interest coverage | 2,238.75 | 177.70 | 480.09 | 137.80 | 40.17 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $277,605K ÷ $124K
= 2,238.75
Fabrinet's interest coverage ratio has shown a positive trend over the past five years, indicating the company's improved ability to meet its interest obligations. The interest coverage ratio has significantly increased from 40.17 in 2020 to 2,238.75 in 2024, reflecting a substantial improvement in the company's ability to cover its interest expenses with its operating income. This upward trend suggests that Fabrinet has become more financially stable and less vulnerable to potential financial distress due to interest payments. It is evident that the company's profitability and operating performance have strengthened over the years, allowing it to comfortably service its debt obligations. Overall, Fabrinet's interest coverage ratio demonstrates a positive financial performance trend and a healthy financial position.
Peer comparison
Jun 30, 2024