Jabil Circuit Inc (JBL)

Number of days of payables

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Payables turnover		5.85	4.01	4.13	4.70	4.52
Number of days of payables	days	62.40	90.97	88.47	77.66	80.70

August 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.85
= 62.40

The number of days of payables, also known as the payable turnover period, measures the average number of days it takes for a company to pay its suppliers for goods and services. A lower number of days typically indicates that a company is managing its payables efficiently.

Examining Jabil Inc's number of days of payables over the past five years, we observe a downward trend. In the fiscal year ending August 31, 2023, Jabil Inc took an average of 65.11 days to pay its suppliers, which is a notable improvement compared to the previous years.

This trend suggests that the company has been more effective in managing its payables, potentially negotiating better terms with its suppliers or improving its cash flow management. However, it is essential to consider the specific industry and business dynamics when analyzing this ratio, as variations can occur across different sectors.

Overall, the decreasing trend in the number of days of payables for Jabil Inc indicates a potential improvement in its payables management, which could positively impact its working capital and cash flow efficiency.