Jabil Circuit Inc (JBL)

Inventory turnover

		Aug 31, 2024	May 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	27,753,000	29,172,000	30,772,000	32,015,000	33,220,000	33,807,000	33,714,000	33,179,000	32,123,000	30,604,500	29,570,710	28,921,540	28,224,000	28,152,640	27,453,550	26,895,330	26,728,150	26,060,910	25,778,030	25,656,270
Inventory	US$ in thousands	4,276,000	4,439,000	4,821,000	5,124,000	5,206,000	6,084,000	6,519,000	6,429,000	6,128,000	5,981,000	5,395,000	4,681,000	4,414,000	3,979,330	3,558,970	3,271,840	3,132,000	3,283,700	3,339,890	3,342,200
Inventory turnover		6.49	6.57	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

August 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $27,753,000K ÷ $4,276,000K
= 6.49

Inventory turnover measures how efficiently a company manages its inventory by revealing how many times during a period it sells and replaces its inventory. A higher inventory turnover ratio indicates more efficient management of inventory.

Analyzing the trend of Jabil Circuit Inc's inventory turnover ratio over the past few years shows a relatively consistent performance. The company's inventory turnover ratio has ranged between 5.12 and 8.53 over the past few years, with an average of approximately 6.81.

The highest inventory turnover ratio was observed in recent years, November 2020 and has fluctuated between 7.68 and 8.53 since then. This indicates that the company has been managing its inventory efficiently, selling and replacing it at a comparatively faster rate, which is generally seen as a positive sign for operational efficiency.

However, it is important to note that changes in inventory turnover ratios can be influenced by various factors such as seasonal fluctuations, industry trends, and overall company performance. Therefore, it is essential to consider these factors while interpreting the inventory turnover ratio in conjunction with other financial metrics to gain a comprehensive understanding of Jabil Circuit Inc's overall financial health and operational efficiency.