Jabil Circuit Inc (JBL)

Days of sales outstanding (DSO)

Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019
Receivables turnover 9.46 8.34 9.28
DSO days 38.59 43.76 39.34

August 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.46
= 38.59

Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect its accounts receivable, indicating the efficiency of its credit and collection policies. A higher DSO may imply a longer cash conversion cycle and potentially greater credit risk, while a lower DSO may indicate a faster turnover of receivables.

Analyzing Jabil Inc's DSO over the past five years, we observe the following trend:
- In 2023, the DSO stands at 38.36 days, showing a decrease from the previous year.
- In 2022, the DSO was 43.56 days, marking an increase from the preceding year.
- In 2021, the DSO was 39.15 days, slightly higher than the level in 2020.
- In 2020, the DSO was 38.12 days, reflecting a marginal decline from the prior year.
- In 2019, the DSO was 39.63 days, slightly higher compared to the levels in the following years.

The decreasing trend in DSO from 2022 to 2023 is a positive indication of improved accounts receivable management and efficiency in collecting payments from customers. This may suggest more effective credit and collection policies, leading to faster conversion of sales into cash. Conversely, the increase in DSO from 2021 to 2022 might point to a potential deterioration in receivables turnover and collection processes.

It is imperative to monitor the DSO closely in the coming periods to determine if the 2023 decrease represents a sustained improvement in the management of accounts receivable. Additionally, comparing the DSO to industry benchmarks and peers could provide further insights into Jabil Inc's credit policies and collection performance.


Peer comparison

Aug 31, 2023