Jabil Circuit Inc (JBL)

Debt-to-assets ratio

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Long-term debt	US$ in thousands	2,880,000	2,875,000	2,575,000	2,878,000	2,678,000
Total assets	US$ in thousands	17,351,000	19,424,000	19,717,000	16,654,000	14,397,000
Debt-to-assets ratio		0.17	0.15	0.13	0.17	0.19

August 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,880,000K ÷ $17,351,000K
= 0.17

The debt-to-assets ratio of Jabil Circuit Inc has shown fluctuations over the past five years. In 2024, the ratio stands at 0.17, indicating that 17% of the company's assets are funded by debt. This marks an increase from the previous year, where the ratio was 0.15.

Comparing the current ratio to the ratios for 2022 and 2023, we observe a rising trend in the company's reliance on debt to finance its assets. In 2022, the ratio was 0.13, which increased to 0.15 in 2023 and further to 0.17 in 2024.

It is noteworthy that in 2020 and 2021, the company had higher debt-to-assets ratios of 0.19 and 0.17, respectively. The decrease in the ratio in 2022 followed by a subsequent increase could suggest strategic decisions by the company regarding its capital structure during those years.

The overall trend indicates a varying level of debt utilization by Jabil Circuit Inc to support its asset base over the five-year period. It would be essential to further analyze the company's financial position, cash flows, and future borrowing plans to assess the implications of these changes in the debt-to-assets ratio.