Jabil Circuit Inc (JBL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	24,591,410	23,771,570
Inventory	US$ in thousands	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	3,023,000	3,159,370
Inventory turnover		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	8.13	7.52

February 29, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $30,772,000K ÷ $4,821,000K
= 6.38

The inventory turnover ratio for Jabil Circuit Inc has shown some fluctuations over the past few periods, ranging from a low of 5.12 to a high of 8.53. The ratio indicates how efficiently the company is managing its inventory by showing how many times it sells and replaces its inventory within a certain period.

A higher inventory turnover ratio typically indicates that the company is efficiently managing its inventory, selling products quickly, and restocking efficiently. Conversely, a lower ratio may suggest overstocking or slow-moving inventory, which can tie up capital and lead to potential obsolescence.

Overall, Jabil Circuit Inc's inventory turnover ratios have generally been in the range of 5 to 8 times per year, with some periods showing stronger performance than others. This suggests that the company has been reasonably effective in managing its inventory levels and ensuring efficient turnover.