Jabil Circuit Inc (JBL)
Interest coverage
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,013,000 | 2,136,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 173,000 | -75,000 | -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 |
| Interest coverage | 11.64 | — | — | — | 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 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,013,000K ÷ $173,000K
= 11.64
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio is favorable as it suggests that the company is generating enough operating earnings to cover its interest expenses.
Looking at the historical data for Jabil Circuit Inc, we observe fluctuations in the interest coverage ratio over the past few years. The interest coverage ratio for Aug 2024 is 11.64, which indicates that the company's operating profits are sufficient to cover its interest expenses by approximately 11.64 times. This signifies a strong financial position in terms of servicing its debt.
In previous periods, we see variability in the interest coverage ratio, with a notable peak of 172.11 in August 2023, implying a very strong ability to meet interest obligations. However, there are also instances where the interest coverage ratio has been lower, such as in November 2019, with a ratio of 2.35, indicating a tighter ability to cover interest expenses.
Overall, it is essential for investors and stakeholders to monitor Jabil Circuit Inc's interest coverage ratio closely to assess the company's financial health and its capacity to manage debt obligations effectively.
Peer comparison
Aug 31, 2024