Jabil Circuit Inc (JBL)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,351,000 | 19,424,000 | 19,717,000 | 16,654,000 | 14,397,000 |
| Total stockholders’ equity | US$ in thousands | 1,737,000 | 2,866,000 | 2,451,000 | 2,136,000 | 1,811,000 |
| Financial leverage ratio | 9.99 | 6.78 | 8.04 | 7.80 | 7.95 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,351,000K ÷ $1,737,000K
= 9.99
The financial leverage ratio of Jabil Circuit Inc has fluctuated over the past five years. It increased from 7.95 in 2020 to 8.04 in 2022, then decreased to 6.78 in 2023, before peaking at 9.99 in 2024. This indicates that the company has been using more debt to finance its operations compared to equity in recent years, which can magnify returns during good times but also increases the risk during economic downturns. The significant increase in the financial leverage ratio in 2024 suggests a possible increase in debt levels relative to equity, indicating a potential shift in the company's capital structure. It may be important for stakeholders to closely monitor this ratio to assess the impact of the company's leverage on its financial stability and performance.
Peer comparison
Aug 31, 2024