Jabil Circuit Inc (JBL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.16 | 0.20 |
| Debt-to-capital ratio | 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 | 0.53 | 0.57 |
| Debt-to-equity ratio | 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 | 1.12 | 1.34 |
| Financial leverage ratio | 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 | 6.87 | 6.80 |
Jabil Circuit Inc's solvency ratios indicate the company's ability to meet its financial obligations in the long term. The debt-to-assets ratio has remained relatively stable over the past few quarters, ranging between 0.13 to 0.17. This suggests that Jabil Circuit Inc has maintained a conservative level of debt compared to its total assets.
The debt-to-capital ratio has also been consistent, hovering around 0.50 to 0.55. This indicates that a moderate portion of the company's capital structure is financed by debt. The debt-to-equity ratio, however, shows a more fluctuating trend, ranging from 0.96 to 1.35. This indicates that Jabil Circuit Inc has at times relied more heavily on debt to finance its operations, which could potentially increase financial risk.
The financial leverage ratio has shown some variability, ranging from 6.44 to 8.11. This suggests that the company's use of debt to finance its operations has varied over the period, impacting its overall leverage. Overall, Jabil Circuit Inc's solvency ratios reflect a cautious approach to debt management, but fluctuations in certain ratios warrant further monitoring to ensure sustainable financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio is a measure of a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing Earnings Before Interest and Taxes (EBIT) by the interest expense for a specific period.
In the case of Jabil Circuit Inc, the interest coverage ratio fluctuated over the past few quarters. In August 2023, the interest coverage ratio was notably high at 172.11, indicating that the company generated significant earnings relative to its interest expenses during that period. However, in the subsequent quarters, the ratio decreased, reaching a low of 2.35 in May 2020.
A high interest coverage ratio is generally a positive sign, as it shows that the company is well-positioned to meet its interest obligations from its operating earnings. Conversely, a low interest coverage ratio may raise concerns about the company's ability to manage its debt burden.
It is important for investors and analysts to monitor changes in the interest coverage ratio over time to assess the company's financial performance and evaluate its risk profile in terms of debt repayment obligations.