Jabil Circuit Inc (JBL)

Payables 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
Payables	US$ in thousands	5,041,000	5,630,000	5,679,000	6,406,000	6,965,000	8,042,000	8,006,000	7,082,000	6,868,000	7,483,000	6,841,000	6,193,200	5,644,360	6,431,570	5,687,000	5,019,290	4,652,140	5,920,280	5,166,780	4,826,330
Payables turnover		6.10	5.69	5.85	5.28	4.84	4.13	4.01	4.32	4.31	3.86	4.13	4.55	4.86	4.18	4.70	5.19	5.54	4.33	4.76	4.93

February 29, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $30,772,000K ÷ $5,041,000K
= 6.10

The payables turnover for Jabil Circuit Inc has fluctuated over the past few quarters, ranging from 3.86 to 6.10. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may suggest efficient working capital management or strong supplier relationships. In contrast, a lower ratio could imply a longer payment period, potentially signaling financial stress or strained relationships with suppliers.

The upward trend in payables turnover from 4.13 in Aug 2021 to 6.10 in Feb 2024 indicates an improvement in the company's ability to manage its payables effectively. This trend, if sustained, could lead to increased liquidity and better cash flow management for Jabil Circuit Inc. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and efficiency in managing its accounts payable.