Jabil Circuit Inc (JBL)

Debt-to-assets ratio

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Long-term debt	US$ in thousands	2,875,000	2,575,000	2,878,000	2,678,000	2,121,280
Total assets	US$ in thousands	19,424,000	19,717,000	16,654,000	14,397,000	12,970,500
Debt-to-assets ratio		0.15	0.13	0.17	0.19	0.16

August 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,875,000K ÷ $19,424,000K
= 0.15

The debt-to-assets ratio measures the proportion of a company's assets that are financed through debt. A lower ratio indicates that a company is relying less on debt to finance its assets, while a higher ratio indicates a higher level of debt financing.

Looking at Jabil Inc's debt-to-assets ratio over the past five years, we observe a relatively stable trend. The company's debt-to-assets ratio has remained fairly consistent, hovering around the range of 0.15 to 0.19.

A debt-to-assets ratio of 0.15 means that for every dollar of assets, Jabil Inc has $0.15 of debt. This indicates that the company relies less on debt financing and has a stronger ability to finance its assets using equity or retained earnings.

The consistent nature of the ratio suggests that Jabil Inc has maintained a prudent approach to managing its debt levels relative to its asset base. This stability in the ratio over the years indicates that the company has maintained a balanced capital structure and has not significantly increased its reliance on debt to finance its operations.

Overall, the stability and relatively low level of Jabil Inc's debt-to-assets ratio indicate a healthy financial position, with a conservative approach to debt financing, which can provide financial stability and flexibility for the company.