Jabil Circuit Inc (JBL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,866,000	2,451,000	2,136,000	1,811,000	1,887,440
Debt-to-capital ratio		0.50	0.51	0.57	0.60	0.53

August 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,875,000K ÷ ($2,875,000K + $2,866,000K)
= 0.50

The debt-to-capital ratio of Jabil Inc has exhibited a decreasing trend over the past five years. The ratio stood at 0.50 as of August 31, 2023, representing a decline from 0.54 in the prior year and a more substantial reduction from 0.57 in 2021 and 0.60 in 2020. This downward trajectory indicates an improving financial position in terms of leveraging. The company's ability to lower its debt relative to its capital suggests a more conservative capital structure and a reduced reliance on debt financing, which may enhance its financial stability and flexibility. Overall, the declining trend in the debt-to-capital ratio reflects a positive development in Jabil Inc's capital structure.