Jabil Circuit Inc (JBL)

Debt-to-capital ratio

		Aug 31, 2024	May 31, 2024	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
Long-term debt	US$ in thousands	2,880,000	2,879,000	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
Total stockholders’ equity	US$ in thousands	1,737,000	2,276,000	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
Debt-to-capital ratio		0.62	0.56	0.52	0.53	0.50	0.51	0.49	0.50	0.51	0.55	0.50	0.52	0.57	0.57	0.56	0.58	0.60	0.56	0.54	0.54

August 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,880,000K ÷ ($2,880,000K + $1,737,000K)
= 0.62

The debt-to-capital ratio of Jabil Circuit Inc has fluctuated over the past few years, showing a mix of increases and decreases. The trend indicates that the company's reliance on debt as a source of financing compared to its capital base has varied. In general, the ratio has ranged between 0.49 to 0.62, with the latest ratio at 0.56 as of August 31, 2024.

A debt-to-capital ratio of 0.56 as of August 31, 2024, suggests that Jabil Circuit Inc finances approximately 56% of its operations through debt, while the remaining 44% comes from equity. This indicates a moderate level of leverage, as more than half of the company's capital structure is debt-based.

Analyzing this ratio in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive understanding of Jabil Circuit Inc's financial health and risk profile. It's important to monitor changes in the debt-to-capital ratio over time to assess the company's evolving capital structure and financial stability.