Jabil Circuit Inc (JBL)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,264,000 | 1,492,000 | 1,549,000 | 1,506,000 | 1,434,000 | 1,392,000 | 1,382,000 | 1,254,000 | 1,183,000 | 1,106,000 | 1,072,000 | 957,232 | 766,183 | 600,741 | 432,000 | 426,928 | 505,019 | 577,194 | 637,000 | 633,463 |
| Interest expense (ttm) | US$ in thousands | -30,000 | -5,000 | 9,000 | 262,000 | 218,000 | 179,000 | 151,000 | 138,000 | 133,000 | 131,000 | 130,000 | 138,033 | 145,906 | 161,089 | 174,000 | 181,641 | 190,282 | 190,259 | 188,000 | 178,108 |
| Interest coverage | — | — | 172.11 | 5.75 | 6.58 | 7.78 | 9.15 | 9.09 | 8.89 | 8.44 | 8.25 | 6.93 | 5.25 | 3.73 | 2.48 | 2.35 | 2.65 | 3.03 | 3.39 | 3.56 |
February 29, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,264,000K ÷ $-30,000K
= —
The interest coverage ratio for Jabil Circuit Inc has shown fluctuations over the past several quarters. The interest coverage ratio measures the company's ability to generate enough operating income to cover its interest expenses.
In the most recent quarter, as of February 29, 2024, the interest coverage ratio was not available. However, in the previous quarter ending November 30, 2023, the interest coverage ratio was quite strong at 172.11, indicating that the company's operating income was significantly higher than its interest expenses.
Looking further back, there was a significant decline in the interest coverage ratio in the quarter ending August 31, 2023, dropping to 5.75. This sharp decrease could potentially be a cause for concern as it indicates a lower ability to cover interest payments with operating income compared to the previous quarter.
Prior to the drop in the interest coverage ratio, the company maintained relatively stable and healthy interest coverage ratios above 5, signifying a comfortable margin to cover interest expenses.
Overall, while the interest coverage ratios have shown volatility, it is essential for Jabil Circuit Inc to closely monitor and manage its operating income and interest expenses to ensure a healthy and sustainable financial position.
Peer comparison
Feb 29, 2024