Jabil Circuit Inc (JBL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.18 | 58.42 | 57.20 | 65.69 | 70.58 | 70.73 | 69.63 | 71.33 | 66.59 | 59.08 | 57.08 | 51.59 | 47.32 | 44.40 | 42.77 | 45.99 | 47.29 | 47.55 | 44.87 | 48.51 |
| Days of sales outstanding (DSO) | days | — | — | 38.59 | — | — | — | 43.76 | — | — | — | 39.34 | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 59.79 | 64.19 | 62.40 | 69.16 | 75.41 | 88.47 | 90.97 | 84.46 | 84.77 | 94.44 | 88.47 | 80.30 | 75.04 | 87.28 | 77.66 | 70.30 | 65.87 | 84.23 | 76.69 | 74.11 |
| Cash conversion cycle | days | -2.61 | -5.77 | 33.39 | -3.48 | -4.83 | -17.74 | 22.42 | -13.13 | -18.18 | -35.36 | 7.96 | -28.70 | -27.73 | -42.88 | -34.89 | -24.31 | -18.58 | -36.68 | -31.82 | -25.60 |
February 29, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.18 + — – 59.79
= -2.61
The cash conversion cycle of Jabil Circuit Inc has shown significant variability over the past several quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
Analyzing the trend, we observe that the company has experienced negative cash conversion cycles in some periods, indicating that it is efficient in managing its working capital. However, there have been instances of positive cash conversion cycles, suggesting inefficiencies in working capital management during those periods.
The most recent data point shows a cash conversion cycle of -2.61 days as of February 29, 2024, reflecting a fast conversion of inventory and receivables into cash. This improvement may indicate better efficiency in managing working capital and converting sales into cash inflows.
On the other hand, the results from August 31, 2023, and May 31, 2022, show relatively long cash conversion cycles of 33.39 days and 22.42 days, respectively, indicating potential challenges in managing inventory, receivables, and payables efficiently during those periods.
Overall, Jabil Circuit Inc should focus on optimizing its working capital management practices to ensure a more consistent and favorable cash conversion cycle, leading to improved liquidity and operational efficiency.
Peer comparison
Feb 29, 2024