Jabil Circuit Inc (JBL)

Current ratio

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Total current assets	US$ in thousands	14,730,000	13,908,000	10,877,000	9,135,000	8,345,080
Total current liabilities	US$ in thousands	12,695,000	13,697,000	10,683,000	9,059,000	8,532,100
Current ratio		1.16	1.02	1.02	1.01	0.98

August 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $14,730,000K ÷ $12,695,000K
= 1.16

The current ratio is a key liquidity ratio that measures a company's ability to pay its short-term obligations with its short-term assets. A current ratio above 1 indicates that a company has more current assets than current liabilities, which suggests a healthy liquidity position.

Based on the provided data, Jabil Inc's current ratio has shown a consistent improving trend over the past five years. In 2019, the current ratio was 0.98, and it has since increased to 1.16 in 2023. This indicates that the company has strengthened its ability to meet its short-term obligations using its current assets.

The increasing current ratio suggests that Jabil Inc has been effectively managing its short-term assets and liabilities, enhancing its liquidity position. This could be indicative of efficient working capital management, which is important for supporting ongoing operations and funding growth initiatives.

Overall, the improving trend in Jabil Inc's current ratio signifies a positive liquidity position and indicates the company's ability to meet its short-term financial obligations. However, it is important to delve deeper into the company's financial statements and other liquidity metrics to gain a more comprehensive understanding of its financial health and liquidity management.