Jabil Circuit Inc (JBL)

Operating return on assets (Operating ROA)

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Operating income	US$ in thousands	1,537,000	1,393,000	1,055,000	500,000	701,000
Total assets	US$ in thousands	19,424,000	19,717,000	16,654,000	14,397,000	12,970,500
Operating ROA		7.91%	7.06%	6.33%	3.47%	5.40%

August 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,537,000K ÷ $19,424,000K
= 7.91%

The operating return on assets (ROA) for Jabil Inc has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate operating income from its assets. The operating ROA has increased from 5.61% in 2019 to 8.21% in 2023, reflecting a steady improvement in the company's operational efficiency and asset utilization.

This upward trend suggests that Jabil Inc has been able to generate higher operating income relative to its assets, which is a positive indicator of the company's operating performance. It indicates that the company has been able to effectively utilize its assets to generate revenue and control its operating expenses.

The consistent improvement in operating ROA indicates that Jabil Inc has been making effective operational decisions and optimizing its asset base to drive profitability. This trend may instill confidence in investors and stakeholders regarding the company's ability to generate returns from its operational activities.

Overall, the upward trajectory of Jabil Inc's operating ROA reflects the company's improving operational efficiency and effective asset management, which can contribute positively to its financial performance and overall business outlook.