Jabil Circuit Inc (JBL)
Payables 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 |
| Payables | US$ in thousands | 6,190,000 | 5,679,000 | 8,006,000 | 6,841,000 | 5,687,000 |
| Payables turnover | 4.48 | 5.85 | 4.01 | 4.13 | 4.70 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $27,753,000K ÷ $6,190,000K
= 4.48
Over the past five years, Jabil Circuit Inc's payables turnover ratio has fluctuated. The payables turnover ratio measures how efficiently a company manages its accounts payables by indicating how many times a company pays off its suppliers in a given period.
In 2024, the payables turnover ratio was 4.48, which indicates that Jabil Circuit Inc paid its suppliers approximately 4.48 times during the year. This is a decrease from the previous two years where the ratios were 5.85 and 4.01 in 2023 and 2022, respectively. It is evident that the company was quicker in paying off its suppliers in 2023 compared to 2024.
Although there has been variability in the payables turnover ratio, Jabil Circuit Inc has generally been able to effectively manage its payables over the years, with ratios consistently above 4. This suggests that the company is maintaining a balance between managing its cash flow efficiently and maintaining good relationships with its suppliers. Further analysis could involve comparing this ratio with industry benchmarks to understand how Jabil Circuit Inc's payables turnover compares to its peers in the industry.
Peer comparison
Aug 31, 2024