Jabil Circuit Inc (JBL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	32,864,000	33,262,000	34,496,000	35,012,000	34,905,000	34,363,000	33,323,000	31,701,450	30,597,290	29,874,810	29,140,990	29,008,250	28,121,180	27,402,560	27,063,170	26,546,240	26,337,560	26,279,490	25,282,320	24,451,590
Property, plant and equipment	US$ in thousands	3,045,000	3,134,000	7,339,000	9,974,000	9,866,000	9,740,000	9,210,000	9,376,000	9,112,000	9,165,000	8,790,000	3,812,160	3,696,370	3,792,090	3,665,310	3,485,670	3,462,040	3,450,210	3,333,750	3,335,840
Fixed asset turnover		10.79	10.61	4.70	3.51	3.54	3.53	3.62	3.38	3.36	3.26	3.32	7.61	7.61	7.23	7.38	7.62	7.61	7.62	7.58	7.33

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $32,864,000K ÷ $3,045,000K
= 10.79

Fixed asset turnover measures the efficiency of Jabil Circuit Inc in generating revenue from its investment in fixed assets over a given period. A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate sales.

From the data provided, we observe fluctuations in Jabil Circuit Inc's fixed asset turnover ratios over the past few quarters. The trend shows that the fixed asset turnover ratio has been relatively stable, hovering around a range of 3.26 to 10.79.

The highest fixed asset turnover of 10.79, recorded in February 2024, suggests that, during that period, Jabil Circuit Inc generated $10.79 in revenue for every $1 invested in fixed assets. This high ratio indicates efficient utilization of fixed assets to generate sales. On the other hand, the lowest fixed asset turnover of 3.26 was seen in August 2021, implying a lower efficiency in converting fixed assets into revenue during that period.

Overall, the fluctuations in fixed asset turnover ratios over the quarters may indicate varying levels of asset utilization efficiency by Jabil Circuit Inc. Further investigation into the factors impacting these fluctuations, such as changes in production levels, operational efficiency, or asset management strategies, would provide deeper insights into the company's performance in utilizing its fixed assets effectively.