Jabil Circuit Inc (JBL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.09 | 1.13 | 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 |
| Quick ratio | 0.19 | 0.22 | 0.24 | 0.12 | 0.43 | 0.12 | 0.09 | 0.09 | 0.40 | 0.09 | 0.09 | 0.10 | 0.44 | 0.13 | 0.09 | 0.11 | 0.15 | 0.09 | 0.08 | 0.07 |
| Cash ratio | 0.19 | 0.22 | 0.24 | 0.12 | 0.14 | 0.12 | 0.09 | 0.09 | 0.11 | 0.09 | 0.09 | 0.10 | 0.15 | 0.13 | 0.10 | 0.12 | 0.16 | 0.09 | 0.08 | 0.08 |
Jabil Circuit Inc's liquidity ratios show fluctuations over the past few quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 1, indicating that Jabil has sufficient current assets to cover its current liabilities. However, there has been some variability in this ratio, with a slight decline from 1.13 in May 2024 to 1.09 in August 2024.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, shows greater volatility. Jabil's quick ratio has varied significantly, ranging from a low of 0.09 in several quarters to a high of 0.44 in February 2023. This indicates that the company may have difficulty meeting its short-term obligations using only its most liquid assets in some periods.
Similarly, the cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, also shows fluctuations. The ratio has varied from 0.08 to 0.24 over the past few quarters, with a noticeable increase in the cash ratio in August 2024 compared to the previous quarter.
Overall, while Jabil Circuit Inc's current ratio suggests adequate short-term liquidity, the quick and cash ratios reveal a more volatile liquidity position. Investors and stakeholders should closely monitor these ratios to ensure the company can meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Jabil Circuit Inc has experienced fluctuations over the past few periods, indicating changes in the efficiency of its working capital management. A negative cash conversion cycle, such as those seen in some periods like August 31, 2024, May 31, 2024, and November 30, 2023, signifies that Jabil Circuit Inc is able to collect cash from customers faster than it pays its suppliers and converts inventory into sales, resulting in a financial advantage.
On the other hand, positive cash conversion cycle values, like August 31, 2023, and November 30, 2021, indicate potential inefficiencies in working capital management and could lead to increased financing needs. Moreover, a decreasing trend in the cash conversion cycle, as seen in periods like August 31, 2020, and February 28, 2022, suggests improvements in managing working capital, resulting in faster conversion of inventory into sales and collection of accounts receivable.
Overall, a company aims to keep its cash conversion cycle as low as possible to optimize cash flows, minimize the need for external financing, and enhance overall liquidity. Jabil Circuit Inc should continue monitoring and fine-tuning its cash conversion cycle to maintain operational efficiency and financial health.