Jabil Circuit Inc (JBL)
Cash conversion cycle
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.24 | 55.54 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 38.59 | — | — | — | 43.76 | — | — | — | 39.34 | — | — | — | — | — | — | — |
| Number of days of payables | days | 81.41 | 67.54 | 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 |
| Cash conversion cycle | days | -25.17 | -12.00 | -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 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.24 + — – 81.41
= -25.17
The cash conversion cycle of Jabil Circuit Inc has fluctuated over the past several quarters. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory back into cash.
From Nov 30, 2019 to Aug 31, 2020, the company experienced a negative cash conversion cycle, indicating that it was able to convert its investments into cash quickly. However, the cycle turned positive in subsequent quarters, peaking at 33.39 days on Aug 31, 2023 before turning negative again.
The negative cash conversion cycle on Aug 31, 2024, shows that Jabil Circuit Inc is efficient in managing its working capital, as it can generate cash from its operations before having to pay suppliers. This could be due to effective inventory management, collection of receivables, or extended payment terms with suppliers.
Overall, the trend in Jabil Circuit Inc's cash conversion cycle indicates fluctuations in working capital efficiency, with periods of optimization followed by challenges. It is important for the company to continue monitoring and managing its cash conversion cycle to ensure sustained operational efficiency and financial health.
Peer comparison
Aug 31, 2024