Jabil Circuit Inc (JBL)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,866,000	2,451,000	2,136,000	1,811,000	1,887,440
ROE		28.54%	40.64%	32.58%	2.98%	15.21%

August 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $818,000K ÷ $2,866,000K
= 28.54%

Jabil Inc's return on equity (ROE) for the years ending August 31, 2019 through August 31, 2023, provides insight into the company's ability to generate profits from the shareholders' equity invested in the business.

In 2019, the ROE stood at 15.21%, indicating a modest return. However, there was a notable increase in 2020 to 2.98%, which might have been a result of lower net income or a decline in shareholder equity.

The trend reversed in the subsequent years, with the ROE showing a robust recovery. In 2021, the ROE improved to 32.58%, signaling a significant bounce-back, and this was followed by a further increase to 40.64% in 2022, indicating a remarkable surge in the company's ability to generate profits relative to its equity base.

The most recent data point, for the year ending August 31, 2023, shows a ROE of 28.54%, representing a decrease from the previous year but still demonstrating strong profitability in relation to shareholder equity.

Overall, the trend in the ROE over the past five years reflects a recovery and subsequent substantial improvement in the company's ability to utilize shareholders' equity effectively to generate profits. However, monitoring the trend over more years and comparing it with industry standards can provide a more comprehensive understanding of the company's performance.