Jabil Circuit Inc (JBL)
Return on total capital
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,264,000 | 1,492,000 | 1,549,000 | 1,506,000 | 1,434,000 | 1,392,000 | 1,382,000 | 1,254,000 | 1,183,000 | 1,106,000 | 1,072,000 | 957,232 | 766,183 | 600,741 | 432,000 | 426,928 | 505,019 | 577,194 | 637,000 | 633,463 |
| Long-term debt | US$ in thousands | 2,878,000 | 2,876,000 | 2,875,000 | 2,874,000 | 2,577,000 | 2,576,000 | 2,575,000 | 2,874,000 | 2,380,000 | 2,379,000 | 2,878,000 | 2,876,600 | 2,679,820 | 2,679,000 | 2,678,000 | 2,087,590 | 2,086,360 | 2,115,720 | 2,121,280 | 2,476,840 |
| Total stockholders’ equity | US$ in thousands | 2,658,000 | 2,535,000 | 2,866,000 | 2,736,000 | 2,673,000 | 2,529,000 | 2,451,000 | 2,356,000 | 2,337,000 | 2,206,000 | 2,136,000 | 2,138,010 | 2,089,160 | 1,979,370 | 1,811,000 | 1,632,300 | 1,746,830 | 1,835,690 | 1,887,440 | 1,854,970 |
| Return on total capital | 40.90% | 27.57% | 26.98% | 26.84% | 27.31% | 27.27% | 27.50% | 23.98% | 25.08% | 24.12% | 21.38% | 19.09% | 16.07% | 12.90% | 9.62% | 11.48% | 13.17% | 14.61% | 15.89% | 14.62% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,264,000K ÷ ($2,878,000K + $2,658,000K)
= 40.90%
The return on total capital for Jabil Circuit Inc has fluctuated over the past few quarters, ranging from 40.90% in February 2024 to 9.62% in August 2020. The return on total capital is a measure of how efficiently the company is generating profits from its total capital employed.
The company achieved a notably high return on total capital in February 2024, indicating efficient utilization of its capital resources to generate profits. This may be attributed to effective cost management, strong revenue generation, or successful investment strategies.
On the other hand, the return on total capital decreased to 9.62% in August 2020, which may suggest challenges in effectively utilizing capital to generate returns during that period. However, the return on total capital has shown a general upward trend from August 2020 to February 2024, indicating potential improvements in capital efficiency and profitability over time.
Overall, analyzing the return on total capital provides valuable insights into Jabil Circuit Inc's ability to generate profits relative to the capital invested in the business, highlighting areas of strength and potential areas for improvement in capital allocation and operational efficiency.
Peer comparison
Feb 29, 2024