Jabil Circuit Inc (JBL)
Inventory turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 27,753,000 | 33,220,000 | 32,123,000 | 28,224,000 | 26,728,100 |
| Inventory | US$ in thousands | 4,276,000 | 5,206,000 | 6,128,000 | 4,414,000 | 3,132,000 |
| Inventory turnover | 6.49 | 6.38 | 5.24 | 6.39 | 8.53 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $27,753,000K ÷ $4,276,000K
= 6.49
Jabil Circuit Inc's inventory turnover has fluctuated over the past five years, with a general trend of remaining relatively stable within a moderate range. The inventory turnover ratio indicates the number of times the company's inventory was sold and replaced during the year.
In 2020, the inventory turnover was relatively high at 8.53, suggesting that the company effectively managed its inventory levels and efficiently sold through its stock. However, in 2022, the ratio decreased to 5.24, indicating a slower rate of inventory turnover, which could potentially signify issues such as overstocking or sluggish sales.
In the most recent year, ending August 31, 2024, the inventory turnover increased to 6.49, showing an improvement compared to the previous year. This suggests that Jabil Circuit Inc was able to sell through its inventory more efficiently during this period.
Overall, while the fluctuations in the inventory turnover ratio indicate variability in the company's inventory management practices, it is essential to monitor the trend over time to assess the effectiveness of Jabil Circuit Inc's inventory control strategies.
Peer comparison
Aug 31, 2024