Fabrinet (FN)
Interest coverage
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 276,994 | 260,980 | 206,461 | 150,796 |
| Interest expense | US$ in thousands | 0 | 124 | 1,472 | 432 | 1,100 |
| Interest coverage | — | 2,233.82 | 177.30 | 477.92 | 137.09 |
June 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $0K
= —
The interest coverage ratio of Fabrinet has demonstrated notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2024. As of June 30, 2021, the ratio stood at 137.09, indicating that Fabrinet’s earnings before interest and taxes (EBIT) were approximately 137 times greater than its interest expenses, reflecting a strong capacity to meet interest obligations.
This ratio experienced a significant increase by June 30, 2022, reaching 477.92, which suggests an exceptional improvement in the company's ability to cover interest payments, potentially driven by substantial increases in EBIT or reductions in interest expenses during that period.
However, by June 30, 2023, the ratio declined markedly to 177.30, indicating a reduction in interest coverage capacity, although it still remained at a high level, signifying continued financial robustness. The most remarkable change occurred by June 30, 2024, where the ratio soared to 2,233.82. This extraordinary figure highlights an extremely high level of EBIT relative to interest expenses, implying either an extraordinary increase in earnings, a significant reduction in interest costs, or both.
The data for June 30, 2025, appears unreported or unavailable, leaving the trend incomplete for subsequent analysis. Overall, the trend depicts a marked strengthening of Fabrinet’s interest coverage ratio over the observed period, culminating in a peak in 2024, which is indicative of a very low risk of default related to interest obligations during this time frame.