Jabil Circuit Inc (JBL)
Fixed asset turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 29,825,000 | 34,496,000 | 33,323,000 | 29,141,000 | 27,063,200 |
| Property, plant and equipment | US$ in thousands | 7,382,000 | 7,339,000 | 9,210,000 | 8,790,000 | 3,665,310 |
| Fixed asset turnover | 4.04 | 4.70 | 3.62 | 3.32 | 7.38 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $29,825,000K ÷ $7,382,000K
= 4.04
The fixed asset turnover ratio for Jabil Circuit Inc has shown fluctuations over the past five years. The ratio calculates how efficiently the company generates sales revenue from its investment in fixed assets. In 2020, the company achieved a high fixed asset turnover of 7.38, indicating that it generated $7.38 in sales for every dollar invested in fixed assets. However, in the following years, the ratio decreased, reaching its lowest point of 3.32 in 2021.
The upward trend in 2022 and 2023 shows improvement in utilizing its fixed assets to generate sales revenue, with ratios of 3.62 and 4.70, respectively. However, in 2024, the ratio decreased again to 4.04, suggesting that the company may not have been as efficient in generating sales from its fixed assets compared to the previous year.
Overall, the trend in the fixed asset turnover ratio for Jabil Circuit Inc indicates variability in the efficiency of utilizing its fixed assets to generate sales revenue over the past five years. Further analysis of the company's operational performance and asset management strategies may be needed to understand the reasons behind these fluctuations.
Peer comparison
Aug 31, 2024