Jabil Circuit Inc (JBL)

Cash ratio

Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019
Cash and cash equivalents US$ in thousands 1,804,000 1,478,000 1,567,000 1,394,000 1,163,340
Short-term investments US$ in thousands 25,000 16,000 18,000 16,556 14,088
Total current liabilities US$ in thousands 12,695,000 13,697,000 10,683,000 9,059,000 8,532,100
Cash ratio 0.14 0.11 0.15 0.16 0.14

August 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,804,000K + $25,000K) ÷ $12,695,000K
= 0.14

The cash ratio of Jabil Inc has exhibited some fluctuation over the past five years. The ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, stood at 0.31 as of August 31, 2023. This indicates that for every dollar of current liabilities, the company has $0.31 in cash and cash equivalents available.

Comparing this to previous years, there is a downward trend from 0.35 in 2020 to 0.28 in 2022, followed by a slight increase in 2023. This suggests a potential decrease in the company's liquidity position between 2020 and 2022, which may have raised concerns about its ability to meet short-term obligations. However, the slight recovery in 2023 indicates some improvement in the company's ability to cover current liabilities with cash.

It's important to note that while the cash ratio provides insight into short-term liquidity, it's also essential to consider other financial indicators and qualitative factors when evaluating Jabil Inc's overall financial health and risk management.


Peer comparison

Aug 31, 2023