Jabil Circuit Inc (JBL)

Operating return on assets (Operating ROA)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Operating income	US$ in thousands	2,013,000	1,537,000	1,393,000	1,055,000	500,000
Total assets	US$ in thousands	17,351,000	19,424,000	19,717,000	16,654,000	14,397,000
Operating ROA		11.60%	7.91%	7.06%	6.33%	3.47%

August 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,013,000K ÷ $17,351,000K
= 11.60%

Jabil Circuit Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, with a consistent increase from 3.47% in 2020 to 11.60% in 2024. This indicates that the company has been more efficient in generating operating profits relative to its total assets over the period.

The improvement in operating ROA suggests that Jabil Circuit Inc has been able to better utilize its assets to generate operating income, reflecting increased operational efficiency and effectiveness in managing its resources. This trend may indicate that the company has implemented strategies to optimize its asset utilization, reduce costs, or improve operational performance.

A higher operating ROA signifies that the company is generating more operating income per dollar of assets employed, which can be seen as a positive indicator of the company's operational performance and profitability. Investors and stakeholders may view this improvement in operating ROA positively as it reflects the company's ability to generate returns on its investments in assets.

Overall, the upward trajectory of Jabil Circuit Inc's operating ROA over the past five years suggests an improvement in the company's operational efficiency and effectiveness in utilizing its assets to generate operating profits.