Jabil Circuit Inc (JBL)
Interest coverage
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,537,000 | 1,382,000 | 1,072,000 | 432,000 | 637,000 |
| Interest expense | US$ in thousands | 9,000 | 151,000 | 130,000 | 174,000 | 188,000 |
| Interest coverage | 170.78 | 9.15 | 8.25 | 2.48 | 3.39 |
August 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,537,000K ÷ $9,000K
= 170.78
The interest coverage ratio, which measures a company's ability to pay interest expenses on its debt, shows a fluctuating trend for Jabil Inc over the past five years.
In 2023, the interest coverage ratio stands at 7.74, indicating that the company generated sufficient operating income to cover its interest expenses. While this ratio has declined from the previous year, it still suggests a relatively solid ability to meet interest obligations.
Looking back, the interest coverage ratio has displayed some volatility, with a peak of 9.66 in 2022 and a low of 4.12 in 2020. This signifies some variability in the company's ability to cover interest expenses over this period.
Overall, the trend indicates that Jabil Inc generally maintains a reasonable ability to meet interest payments from its operating income, although there has been some variability in this measure over the past five years. It would be important for stakeholders to closely monitor this ratio to ensure continued financial stability.
Peer comparison
Aug 31, 2023