Jabil Circuit Inc (JBL)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.97% | 8.31% | 7.90% | 8.10% | 7.14% |
| Operating profit margin | 6.75% | 4.46% | 4.18% | 3.62% | 1.85% |
| Pretax margin | 5.87% | 3.66% | 3.69% | 3.23% | 0.95% |
| Net profit margin | 4.65% | 2.37% | 2.99% | 2.39% | 0.20% |
Jabil Circuit Inc's profitability ratios have shown a positive trend over the past five years. The gross profit margin has gradually increased from 7.14% in 2020 to 8.97% in 2024, indicating the company's ability to effectively manage its production costs and generate higher profit from sales.
Similarly, the operating profit margin has shown significant improvement, increasing from 1.85% in 2020 to 6.75% in 2024. This suggests that the company has been able to control its operating expenses more efficiently and improve its operational efficiency.
The pretax margin has also exhibited a consistent upward trajectory, rising from 0.95% in 2020 to 5.87% in 2024. This indicates that Jabil Circuit Inc has been able to enhance its profitability before accounting for taxes through better cost management and revenue generation.
Furthermore, the net profit margin has seen a substantial increase over the five-year period, climbing from 0.20% in 2020 to 4.65% in 2024. This suggests that the company has effectively managed its expenses, including taxes, and improved its bottom line profitability.
Overall, Jabil Circuit Inc's improving profitability ratios reflect its efforts to enhance operational efficiency, control costs, and drive revenue growth, indicating positive financial performance and potential for sustained profitability in the future.
Return on investment
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.60% | 7.91% | 7.06% | 6.33% | 3.47% |
| Return on assets (ROA) | 8.00% | 4.21% | 5.05% | 4.18% | 0.38% |
| Return on total capital | 43.60% | 26.77% | 27.50% | 21.38% | 9.62% |
| Return on equity (ROE) | 79.91% | 28.54% | 40.64% | 32.58% | 2.98% |
Jabil Circuit Inc's profitability ratios reflect a positive trend over the past five years, indicating improving financial performance.
1. Operating return on assets (Operating ROA) has steadily increased from 3.47% in 2020 to 11.60% in 2024, demonstrating the company's ability to generate operating income from its assets efficiently.
2. Return on assets (ROA) has also shown consistent improvement, rising from 0.38% in 2020 to 8.00% in 2024, suggesting that the company has been more effective in generating profits relative to its total assets.
3. Return on total capital has seen substantial growth, reaching 43.60% in 2024 from 9.62% in 2020, indicating that the company has been successful in generating returns for both debt and equity investors.
4. Return on equity (ROE) has shown a remarkable increase, from 2.98% in 2020 to 79.91% in 2024, highlighting the company's ability to generate strong returns for its equity shareholders.
Overall, the upward trend in Jabil Circuit Inc's profitability ratios signifies effective management of assets, capital, and equity, leading to improved profitability and value creation for stakeholders.