Jabil Circuit Inc (JBL)

Gross profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Gross profit	US$ in thousands	2,867,000	2,632,000	2,359,000	1,931,000	1,913,000
Revenue	US$ in thousands	34,496,000	33,323,000	29,141,000	27,063,200	25,282,300
Gross profit margin		8.31%	7.90%	8.10%	7.14%	7.57%

August 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,867,000K ÷ $34,496,000K
= 8.31%

Sure, I can provide a detailed analysis of Jabil Inc's gross profit margin based on the data provided.

Gross profit margin is a key financial metric that measures a company's efficiency in producing and selling its products. It is calculated as the percentage of sales revenue that exceeds the cost of goods sold, and is a critical indicator of a company's pricing strategy, cost structure, and competitive positioning.

Looking at Jabil Inc's gross profit margin over the past five years, we can observe the following trends:

1. Aug 31, 2023: 8.26%
2. Aug 31, 2022: 7.86%
3. Aug 31, 2021: 8.06%
4. Aug 31, 2020: 7.08%
5. Aug 31, 2019: 7.57%

The gross profit margin has shown some variability over the past five years, ranging from a low of 7.08% in 2020 to a high of 8.26% in 2023. This variability indicates that Jabil Inc's ability to generate profits from its core manufacturing and distribution activities has not been consistent over this time period.

A rising gross profit margin generally indicates that a company is effectively controlling its production costs and/or commanding higher prices for its products, which can be a positive sign for investors. Conversely, a declining margin can suggest increasing production costs relative to sales, pricing pressure from competition, or other operational challenges.

In the case of Jabil Inc, the upward trend between 2020 and 2023 suggests an improvement in the company's ability to generate profits from its core operations. However, the decrease in 2022 from the prior year indicates some challenges in controlling costs or maintaining pricing power.

Overall, while the trend in Jabil Inc's gross profit margin is positive in 2023, the variability in previous years suggests that investors should continue to monitor the company's ability to manage its production costs and maintain pricing power in the market.

In conclusion, the gross profit margin analysis of Jabil Inc highlights the company's performance in generating profits from its core operations and provides valuable insights into its cost management and competitive positioning.