Jabil Circuit Inc (JBL)

Financial leverage ratio

		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	Aug 31, 2019	May 31, 2019
Total assets	US$ in thousands	17,123,000	19,414,000	19,424,000	19,436,000	19,567,000	20,506,000	19,717,000	18,171,000	17,430,000	17,588,000	16,654,000	15,740,700	14,494,200	15,269,500	14,397,000	13,390,900	13,139,700	14,445,000	12,970,500	12,608,800
Total stockholders’ equity	US$ in thousands	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	1,887,440	1,854,970
Financial leverage ratio		6.44	7.66	6.78	7.10	7.32	8.11	8.04	7.71	7.46	7.97	7.80	7.36	6.94	7.71	7.95	8.20	7.52	7.87	6.87	6.80

February 29, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,123,000K ÷ $2,658,000K
= 6.44

The financial leverage ratio of Jabil Circuit Inc has exhibited fluctuations over the past several quarters. The ratio, calculated as total assets divided by total equity, indicates the degree of financial risk faced by the company due to its capital structure.

Looking at the trend, the financial leverage ratio ranged from a low of 6.44 to a high of 8.20 during the period under consideration. The ratio experienced some volatility, with peaks and troughs occurring at different points in time. Generally, a higher financial leverage ratio suggests that the company is relying more on debt to finance its operations compared to equity.

The ratio exceeding 1 indicates that the company has more liabilities than equity, implying a higher level of financial risk. A consistently high financial leverage ratio may signal potential concerns about the company's ability to meet its debt obligations, especially during challenging economic conditions.

Overall, it is important for investors and stakeholders to carefully monitor Jabil Circuit Inc's financial leverage ratio over time to assess the evolving risk profile of the company and its implications on financial stability and performance.