Jabil Circuit Inc (JBL)
Interest coverage
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,013,000 | 1,537,000 | 1,382,000 | 1,072,000 | 432,000 |
| Interest expense | US$ in thousands | 173,000 | 9,000 | 151,000 | 130,000 | 174,000 |
| Interest coverage | 11.64 | 170.78 | 9.15 | 8.25 | 2.48 |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,013,000K ÷ $173,000K
= 11.64
Interest coverage measures a company's ability to meet its interest obligations with its operating income. Looking at the trend for Jabil Circuit Inc over the past five years, we can see fluctuations in the interest coverage ratio.
In 2020, the interest coverage ratio was 2.48, indicating that the company's operating income was able to cover its interest expenses nearly 2.5 times. This ratio improved significantly in 2021, reaching 8.25, signaling a stronger ability to meet interest payments.
However, in 2022, the interest coverage ratio fell to 9.15 before dropping again to 11.64 in 2024. The significant fluctuation in these years suggests that there may have been changes in the company's operating income and/or interest expenses impacting its ability to cover interest payments.
Overall, while the interest coverage ratio has shown variations over the years, the current ratio of 11.64 indicates that Jabil Circuit Inc is currently in a strong position to meet its interest obligations with its operating income. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial health and ability to service its debt.
Peer comparison
Aug 31, 2024