Jabil Circuit Inc (JBL)
Financial leverage ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,424,000 | 19,717,000 | 16,654,000 | 14,397,000 | 12,970,500 |
| Total stockholders’ equity | US$ in thousands | 2,866,000 | 2,451,000 | 2,136,000 | 1,811,000 | 1,887,440 |
| Financial leverage ratio | 6.78 | 8.04 | 7.80 | 7.95 | 6.87 |
August 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,424,000K ÷ $2,866,000K
= 6.78
The financial leverage ratio measures the extent to which a company relies on debt to finance its assets. A higher financial leverage ratio indicates a greater reliance on debt financing.
Looking at the trend for Jabil Inc from 2019 to 2023, the financial leverage ratio has fluctuated. In 2019, the ratio was 6.87, increased to 7.95 in 2020, decreased to 7.80 in 2021, further declined to 8.04 in 2022, and then decreased to 6.78 in 2023.
The decrease in the financial leverage ratio from 2022 to 2023 suggests that the company has reduced its reliance on debt financing, which could indicate a more conservative approach to capital structure. It may also signify improved financial stability and reduced financial risk.
Overall, it is essential to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of Jabil Inc's capital structure and financial risk management.
Peer comparison
Aug 31, 2023