Jabil Circuit Inc (JBL)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 19,424,000 | 19,717,000 | 16,654,000 | 14,397,000 | 12,970,500 |
| ROA | 4.21% | 5.05% | 4.18% | 0.38% | 2.21% |
August 31, 2023 calculation
ROA = Net income ÷ Total assets
= $818,000K ÷ $19,424,000K
= 4.21%
Jabil Inc's return on assets (ROA) is a crucial financial metric that reflects the company's efficiency in generating profits from its total assets. The trend of Jabil Inc's ROA over the past five years is as follows:
- Aug 31, 2023: 4.21%
- Aug 31, 2022: 5.05%
- Aug 31, 2021: 4.18%
- Aug 31, 2020: 0.37%
- Aug 31, 2019: 2.21%
The ROA has fluctuated over the years, indicating changes in the company's ability to generate earnings relative to its assets. A higher ROA implies that the company is utilizing its assets more efficiently to generate profits.
The decline in ROA from 5.05% in 2022 to 4.21% in 2023 indicates a decrease in the company's efficiency in generating profits from its assets. It's important to investigate the reasons behind this decline, such as changes in the company's profitability, asset utilization, or asset base.
Comparing the ROA to industry benchmarks and the company's competitors can provide additional insight into Jabil Inc's performance. If the company's ROA is lower than its peers, it may signify inefficiency in asset management or lower profitability relative to industry standards.
Overall, the trend in Jabil Inc's ROA suggests fluctuations in the company's ability to generate profits from its assets, which warrants further analysis to identify the underlying factors driving these changes.
Peer comparison
Aug 31, 2023