Jabil Circuit Inc (JBL)

Short-term

Turnover ratios

The activity ratios for Jabil Circuit Inc provide insights into how efficiently the company manages its resources.

1. Inventory turnover: Jabil Circuit Inc consistently maintains a relatively high inventory turnover ratio, indicating that the company effectively manages its inventory levels and efficiently sells its products. The ratio has been relatively stable over the past few quarters, ranging between 5.12 and 8.53 times per year.

2. Receivables turnover: Limited data is available for the receivables turnover ratio, but it appears that Jabil Circuit Inc has been able to collect on its receivables efficiently in the quarters where data is provided. The turnover ratio seems to be relatively high when data is available.

3. Payables turnover: Jabil Circuit Inc has a consistent payables turnover ratio, suggesting that the company manages its payables effectively. The ratio has ranged between 4.01 and 6.10 times per year, indicating a steady pace of paying off its suppliers.

4. Working capital turnover: The working capital turnover ratio for Jabil Circuit Inc fluctuates significantly, indicating varying levels of efficiency in utilizing its working capital. The company has experienced periods of high turnover, such as 356.09 in Aug 31, 2020, which may indicate a rapid and efficient use of working capital to generate sales. However, the ratio also shows periods where data is sparse or not available, suggesting potential fluctuations in the company's working capital management.

Overall, Jabil Circuit Inc appears to be effectively managing its inventory and payables, and the limited data available on receivables turnover also suggests efficiency in collecting on receivables. The fluctuations in the working capital turnover ratio indicate varying levels of efficiency in utilizing working capital to generate revenue.

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Average number of days

Based on the activity ratios data provided for Jabil Circuit Inc, here are some key observations:

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand have fluctuated over the given periods, ranging from a low of 42.77 days to a high of 70.73 days.
- The trend indicates variability in managing inventory levels efficiently, with some periods showing improvements and others reflecting longer inventory holding periods.
- Monitoring and potentially optimizing inventory turnover could help improve working capital efficiency and minimize carrying costs.

2. Days of Sales Outstanding (DSO):
- DSO data is missing for several periods, which may indicate a lack of consistent reporting or different accounting practices.
- When reported, DSO ranged from 38.59 days to 43.76 days, suggesting a relatively stable collection period for accounts receivable.
- A lower DSO is typically favorable as it indicates quicker collection of revenue, which can enhance cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables varies significantly, spanning from 59.79 days to 94.44 days.
- Higher days of payables suggest the company takes longer to settle its outstanding bills, potentially indicating favorable terms with suppliers or cash flow management practices.
- Managing payables effectively is essential to maintain good relationships with suppliers while optimizing cash flow and working capital.

In conclusion, Jabil Circuit Inc’s activity ratios reflect fluctuations and potential areas for improvement in inventory management, accounts receivable collection, and payable optimization. Continuous monitoring of these ratios and implementing strategies to enhance operational efficiency can contribute to overall financial health and performance.

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Long-term

Jabil Circuit Inc's fixed asset turnover ratio has shown fluctuation over the past two years, ranging from a low of 3.26 to a high of 10.79. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover indicates that the company is effectively using its assets to generate sales.

On the other hand, the total asset turnover ratio has displayed more stability over the same period, with values ranging from 1.68 to 2.00. This ratio assesses the company's ability to generate sales relative to its total assets. A higher total asset turnover ratio signifies that the company is effectively utilizing its assets to generate revenue.

Overall, the fixed asset turnover ratio for Jabil Circuit Inc has generally been higher than the total asset turnover ratio, indicating that the company is particularly efficient in utilizing its fixed assets to generate sales revenue. However, it is important to continue monitoring both ratios to assess the company's operational efficiency and asset utilization over time.