Jabil Circuit Inc (JBL)

Total asset turnover

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Revenue	US$ in thousands	34,496,000	33,323,000	29,141,000	27,063,200	25,282,300
Total assets	US$ in thousands	19,424,000	19,717,000	16,654,000	14,397,000	12,970,500
Total asset turnover		1.78	1.69	1.75	1.88	1.95

August 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $34,496,000K ÷ $19,424,000K
= 1.78

Jabil Inc's total asset turnover ratio measures its ability to generate revenue from its assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate sales.

Looking at the trend over the past five years, we can observe fluctuations in Jabil Inc's total asset turnover ratio. In 2019, the ratio was relatively high at 1.95, suggesting that the company generated $1.95 in sales for every $1 of assets. However, the ratio has been declining since then, reaching a low of 1.70 in 2022 before increasing slightly to 1.79 in 2023.

The decline in the total asset turnover ratio could signify that Jabil Inc has become less effective in using its assets to generate sales. This might be due to an increase in total assets without a corresponding increase in revenue or a decrease in sales relative to the asset base. It could also indicate inefficiencies in inventory management or asset utilization.

It is important for investors and stakeholders to delve deeper into the company's financial statements and operational activities to understand the reasons behind the fluctuations in the total asset turnover ratio and assess the company's overall financial performance and efficiency in utilizing its assets for revenue generation.