Jabil Circuit Inc (JBL)

Days of inventory on hand (DOH)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Inventory turnover		6.38	6.25	6.38	5.56	5.17	5.16	5.24	5.12	5.48	6.18	6.39	7.07	7.71	8.22	8.53	7.94	7.72	7.68	8.13	7.52
DOH	days	57.18	58.42	57.20	65.69	70.58	70.73	69.63	71.33	66.59	59.08	57.08	51.59	47.32	44.40	42.77	45.99	47.29	47.55	44.87	48.51

February 29, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.38
= 57.18

The Days of Inventory on Hand (DOH) for Jabil Circuit Inc has shown some fluctuations over the past few periods. The company's DOH ranged from a low of 42.77 days to a high of 71.33 days. It appears that the trend in DOH has been decreasing over the last few periods, reaching its lowest point of 42.77 days as of Aug 31, 2020, before slightly increasing again.

A lower DOH indicates that the company is managing its inventory more efficiently, as it is selling its products faster and has less excess inventory on hand. Conversely, a higher DOH suggests that the company may be holding onto excess inventory or facing challenges in selling its products quickly.

It is important for Jabil Circuit Inc to closely monitor its inventory management practices to optimize its working capital and ensure efficient operations. They should strive to strike a balance between stocking enough inventory to meet demand and minimizing excess inventory that could tie up resources.