Jabil Circuit Inc (JBL)

Net profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Net income	US$ in thousands	818,000	996,000	696,000	54,000	287,000
Revenue	US$ in thousands	34,496,000	33,323,000	29,141,000	27,063,200	25,282,300
Net profit margin		2.37%	2.99%	2.39%	0.20%	1.14%

August 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $818,000K ÷ $34,496,000K
= 2.37%

Net profit margin is a key financial ratio that reveals the percentage of each dollar of a company's revenue that translates into profit after all expenses have been deducted. Let's analyze Jabil Inc's net profit margin over the past five years:

1. Aug 31, 2023: Jabil Inc's net profit margin was 2.36%. This indicates that for every dollar of revenue generated, the company retained $0.0236 as profit after accounting for all expenses.

2. Aug 31, 2022: The net profit margin was 2.98%, showing a decrease from the previous year. This decline may signify that the company's expenses relative to its revenue increased, impacting its ability to retain profit.

3. Aug 31, 2021: The net profit margin stood at 2.38%, indicating a moderate improvement from the previous year. This suggests that the company became more efficient in managing its costs relative to its revenue.

4. Aug 31, 2020: Jabil Inc's net profit margin was 0.20%, reflecting a substantial decrease compared to the prior year. This sharp decline may indicate challenges or inefficiencies in the company's operations that affected its profitability.

5. Aug 31, 2019: The net profit margin was 1.14%, showing a significant improvement from the previous year. This increase suggests that the company made operational adjustments that positively impacted its profitability.

In summary, Jabil Inc's net profit margin has fluctuated over the past five years, with some years showing improvements and others displaying declines. This indicates varying levels of efficiency in managing costs and generating profits. It would be important for stakeholders to further investigate the underlying factors contributing to these fluctuations to gain a holistic understanding of the company's financial performance.