Fabrinet (FN)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 1.37 | 1.38 | 1.34 | 1.34 | 1.35 | 1.32 | 1.32 | 1.35 | 1.41 | 1.42 | 1.43 | 1.46 | 1.45 | 1.46 | 1.47 | 1.45 | 1.40 | 1.44 | 1.42 |
The analysis of Fabrinet's solvency ratios reveals a consistent pattern of minimal or nonexistent leverage, as indicated by the reported data. Notably, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all recorded at zero across all time periods from September 2020 through June 2025. This suggests that the company has not utilized debt financing during this period or that such liabilities are negligible relative to its assets and equity structure.
The absence of reported debt ratios signifies that Fabrinet maintains a leverage profile that is primarily equity-funded. This capital structure indicates a strong solvency position, characterized by no observable debt obligations impacting its financial leverage metrics. Consequently, from a solvency perspective, the company's financial health appears robust, devoid of potential risks associated with high leverage or debt repayment pressures.
In addition, the financial leverage ratio, which measures the proportion of assets financed through debt relative to equity, demonstrates mild fluctuations but remains within a low range, fluctuating from approximately 1.32 to 1.47 over the observation period. These ratios are typical of a firm with minimal debt, reinforcing the conclusion of a conservative financial policy that emphasizes equity financing.
Overall, Fabrinet exhibits a highly solvent profile with no indications of indebtedness. Its capital structure predominantly comprises equity, reducing the risks associated with debt servicing and financial distress. This financial positioning suggests stability and resilience, with limited exposure to leverage-related vulnerabilities.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 19,180.53 | 7,701.09 | 3,914.68 | 2,409.68 | 702.18 | 359.72 | 240.98 | 178.83 | 200.06 | 254.63 | 284.80 | 474.44 | 294.43 | 205.06 | 181.03 | 137.11 | 135.86 | 130.47 | 138.44 |
The interest coverage ratio for Fabrinet has exhibited a significant upward trend over the observed period, reflecting a strengthening of the company's capacity to meet its interest obligations through its earnings. Starting from a ratio of approximately 138.44 times at September 30, 2020, the ratio remained relatively stable through the end of 2021, with values fluctuating around the 130–200 range, indicating strong operational profitability relative to interest expenses.
From early 2022 onwards, a substantial increase is apparent. The ratio escalated from approximately 294.43 at March 31, 2022, to an extraordinary peak of 7,701.09 by December 31, 2024. This dramatic rise suggests a significant improvement in the company's earnings or a decrease in interest expenses, or potentially both, leading to an exceptional buffer for interest payments.
The trend continues with the interest coverage ratio reaching even higher levels in early 2025, indicating that Fabrinet's earnings are vastly exceeding its interest obligations. The data shows ratios surpassing 19,000 times, which implies a remarkably low risk of interest payment default based on current earnings. However, such an extraordinarily high ratio could also reflect non-recurring gains or accounting measures impacting earnings.
Overall, the trajectory illustrates a progressively robust financial position regarding debt servicing coverage, with the ratio indicating increasingly conservative leverage and declining concern over interest obligations over the observed period.