Jabil Circuit Inc (JBL)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	1,737,000	2,866,000	2,451,000	2,136,000	1,811,000
Debt-to-equity ratio		1.66	1.00	1.05	1.35	1.48

August 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,880,000K ÷ $1,737,000K
= 1.66

The debt-to-equity ratio of Jabil Circuit Inc has shown fluctuations over the past five years, with a trend towards increasing leverage. As of August 31, 2024, the ratio stands at 1.66, indicating that the company's level of debt is 1.66 times higher than its equity.

Comparing this to the ratio of 1.00 in 2023 and 1.05 in 2022, it is evident that the company has taken on more debt relative to its equity in recent years. The peak ratio of 1.48 in 2020 demonstrates a previous high level of leverage, which has since been surpassed in 2024.

A higher debt-to-equity ratio generally implies higher financial risk for a company, as it may indicate a heavier reliance on debt financing. Investors and stakeholders should closely monitor Jabil Circuit Inc's ability to manage its debt levels and ensure that it can meet its financial obligations, especially in an economic downturn or during periods of financial stress.