Jabil Circuit Inc (JBL)

The solvency ratios of Jabil Inc over the past five years show consistent improvement in its overall financial leverage and debt management. The debt-to-assets ratio remained stable at 0.15 in the last two years, indicating that the company's total debt level as a proportion of its total assets has been well-controlled. Furthermore, the debt-to-capital ratio decreased from 0.60 in 2020 to 0.50 in 2023, reflecting a decline in reliance on debt for capital financing.

The debt-to-equity ratio also depicts a positive trend, decreasing from 1.51 in 2020 to 1.00 in 2023. This suggests that the company has been reducing its level of financial leverage, thereby lowering the financial risk and indicating a stronger equity position in the capital structure. Moreover, the financial leverage ratio has improved consistently over the years, indicating an efficient use of debt to amplify returns for the shareholders.

Overall, Jabil Inc's solvency ratios demonstrate a prudent and effective management of debt, exhibiting an increasing financial stability and decreasing financial risk over the years up to 2023.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Jabil Inc's interest coverage has shown an improving trend over the past five years, increasing from 4.35 in 2019 to 7.74 in 2023. This indicates that the company's ability to cover its interest expenses with its earnings has strengthened. The substantial increase in the interest coverage ratio from 4.12 in 2020 to 9.66 in 2022 also demonstrates a significant improvement in the company's ability to service its debt. Overall, the upward trend in Jabil Inc's interest coverage ratio suggests a healthier financial position and greater capacity to meet its interest payment obligations.