Jabil Circuit Inc (JBL)

Days of inventory on hand (DOH)

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Inventory turnover		6.38	5.24	6.39	8.53	7.73
DOH	days	57.20	69.63	57.08	42.77	47.22

August 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.38
= 57.20

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds its inventory before it is sold. A lower DOH is generally preferred as it indicates that inventory is being managed efficiently.

Analyzing Jabil Inc's DOH over the past five years reveals the following trends:

- In 2019, Jabil Inc's DOH was 47.22 days, indicating that on average, the company held its inventory for around 47 days before it was sold.
- In 2020, the DOH decreased to 45.12 days, suggesting an improvement in inventory turnover and more efficient management of inventory.
- However, in 2021, the DOH increased to 59.83 days, indicating that Jabil Inc was holding its inventory for a longer period compared to the previous year. This increase might suggest potential issues with inventory management or changes in the company's operating cycle.
- In 2022, the DOH further increased to 72.51 days, signifying a significant extension in the time it took for Jabil Inc to sell its inventory. This could indicate potential inefficiencies or challenges in managing inventory levels.
- In 2023, there was a notable decrease in DOH to 59.69 days, which may indicate that the company took steps to address the issues identified in the previous year.

Overall, the fluctuation in Jabil Inc's DOH over the past five years suggests that the company's inventory management may have experienced challenges. It is crucial for Jabil Inc to closely monitor its inventory turnover and management practices to ensure efficiency and avoid potential obsolescence or carrying costs associated with excess inventory.