Jabil Circuit Inc (JBL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.16 | 0.17 | 0.15 | 0.15 | 0.15 | 0.13 | 0.13 | 0.13 | 0.16 | 0.14 | 0.14 | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 | 0.16 | 0.16 | 0.15 |
| Debt-to-capital ratio | 0.62 | 0.56 | 0.52 | 0.53 | 0.50 | 0.51 | 0.49 | 0.50 | 0.51 | 0.55 | 0.50 | 0.52 | 0.57 | 0.57 | 0.56 | 0.58 | 0.60 | 0.56 | 0.54 | 0.54 |
| Debt-to-equity ratio | 1.66 | 1.26 | 1.08 | 1.13 | 1.00 | 1.05 | 0.96 | 1.02 | 1.05 | 1.22 | 1.02 | 1.08 | 1.35 | 1.35 | 1.28 | 1.35 | 1.48 | 1.28 | 1.19 | 1.15 |
| Financial leverage ratio | 9.99 | 7.67 | 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 |
The solvency ratios of Jabil Circuit Inc, as depicted by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, provide insights into the company's financial stability and ability to meet its long-term obligations.
Over the period under consideration, Jabil Circuit Inc has maintained relatively consistent levels in its debt-to-assets ratio, ranging from 0.13 to 0.19. This indicates that the company has effectively managed its debt in relation to its total assets, with a lower ratio generally considered favorable as it suggests a lower reliance on debt financing.
The debt-to-capital and debt-to-equity ratios show a similar trend, with fluctuations observed but generally within manageable limits. The debt-to-capital ratio has varied between 0.49 and 0.62, showcasing the proportion of debt in the company's capital structure. Meanwhile, the debt-to-equity ratio has ranged from 0.96 to 1.66, indicating the extent to which the company's operations are funded by debt relative to equity. Both ratios suggest a moderate level of leverage, with a decreasing trend in recent periods which could be viewed positively as it signals a potential reduction in financial risk.
The financial leverage ratio, which reflects the company's reliance on debt to finance its assets, has shown fluctuations but has been generally maintained at levels between 6.44 and 9.99. This ratio gives a broader view of the company's overall leverage and indicates that Jabil Circuit Inc has mostly sustained a stable capital structure over the evaluated periods.
In conclusion, the solvency ratios of Jabil Circuit Inc demonstrate a prudent management of debt and leverage, with a consistent effort to maintain a balanced and sustainable financial structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Jabil Circuit Inc fluctuated over the past few years, indicating variations in the company's ability to cover its interest expenses with its operating income. From Aug 31, 2020, to Aug 31, 2022, the interest coverage ratio ranged between 9.09 and 9.15, reflecting a relatively stable and healthy financial position. However, there was a notable increase to 172.11 on Aug 31, 2023, suggesting a significant improvement in the company's ability to cover its interest obligations.
Subsequently, the ratio decreased to 6.58 on May 31, 2023, and further to 5.75 on Aug 31, 2023, indicating a decrease in interest coverage efficiency. The ratio continued to decline in the following periods, reaching 2.48 on Nov 30, 2020, and 2.35 on Feb 29, 2020. This downward trend may raise concerns about Jabil Circuit Inc's ability to comfortably meet its interest payments with its operating income during those periods.
Overall, a closer analysis of the company's financial performance and operating income trends during the corresponding periods is necessary to understand the factors influencing the fluctuations in the interest coverage ratio.