Jabil Circuit Inc (JBL)

Return on total capital

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,013,000	1,537,000	1,382,000	1,072,000	432,000
Long-term debt	US$ in thousands	2,880,000	2,875,000	2,575,000	2,878,000	2,678,000
Total stockholders’ equity	US$ in thousands	1,737,000	2,866,000	2,451,000	2,136,000	1,811,000
Return on total capital		43.60%	26.77%	27.50%	21.38%	9.62%

August 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,013,000K ÷ ($2,880,000K + $1,737,000K)
= 43.60%

Jabil Circuit Inc's return on total capital has shown a positive trend over the past five years, increasing from 9.62% in 2020 to 43.60% in 2024. This indicates that the company has been effectively utilizing its total capital to generate profits for its stakeholders. The substantial growth in the return on total capital reflects the company's efficiency in allocating resources to generate returns. Overall, the improving trend in Jabil Circuit Inc's return on total capital demonstrates sound financial management and operational efficiency.