Jabil Circuit Inc (JBL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.17 | 1.12 | 1.16 | 1.06 | 1.04 | 1.02 | 1.02 | 1.04 | 1.01 | 0.99 | 1.02 | 1.04 | 1.03 | 1.02 | 1.01 | 0.94 | 0.95 | 0.97 | 0.98 | 1.01 |
| Quick ratio | 0.24 | 0.12 | 0.43 | 0.12 | 0.09 | 0.09 | 0.40 | 0.09 | 0.09 | 0.10 | 0.44 | 0.12 | 0.09 | 0.11 | 0.15 | 0.08 | 0.08 | 0.07 | 0.14 | 0.09 |
| Cash ratio | 0.24 | 0.12 | 0.14 | 0.12 | 0.09 | 0.09 | 0.11 | 0.09 | 0.09 | 0.10 | 0.15 | 0.13 | 0.09 | 0.11 | 0.15 | 0.09 | 0.08 | 0.08 | 0.14 | 0.09 |
Based on the provided data on Jabil Circuit Inc's liquidity ratios, we observe the following trends:
1. Current Ratio:
- Jabil Circuit Inc's current ratio has fluctuated over the past few periods, ranging from a low of 0.94 to a high of 1.17.
- The current ratio indicates the company's ability to meet its short-term liabilities with its current assets. A ratio above 1 indicates the company has more current assets than current liabilities.
2. Quick Ratio:
- Jabil Circuit Inc's quick ratio has shown significant variability, with values as low as 0.08 and as high as 0.44.
- The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. A ratio below 1 may indicate potential difficulties in meeting short-term obligations without relying on inventory.
3. Cash Ratio:
- The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also exhibited fluctuations.
- Jabil Circuit Inc's cash ratio has ranged from 0.08 to 0.24, indicating varying levels of cash availability relative to short-term obligations.
Overall, based on the trends observed in the current, quick, and cash ratios of Jabil Circuit Inc, it is essential for stakeholders to closely monitor the company's liquidity position to ensure it can meet its short-term financial commitments effectively. The fluctuations in these ratios suggest potential challenges in maintaining adequate liquidity levels, emphasizing the importance of sound cash management practices and strategic planning to mitigate liquidity risks.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Jabil Circuit Inc has shown fluctuations over the past several quarters. In the most recent quarter, the cash conversion cycle was -2.61 days, indicating that the company is able to convert its inventory into cash at a relatively fast pace. However, this was an improvement from the previous quarter where the cycle was -5.77 days, suggesting further efficiency in managing its working capital.
Looking back over the past year, there have been instances where the cash conversion cycle was positive, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash. For example, in August 2023, the cycle was 33.39 days, signaling a potential inefficiency in the company's working capital management.
Overall, the negative cash conversion cycle figures in recent quarters imply that Jabil Circuit Inc has been adept at managing its working capital efficiently, converting its investments in inventory and accounts receivable into cash quickly. However, it is worth noting the fluctuations in the cycle, underscoring the importance of ongoing monitoring and optimization of working capital management practices.