Revenue Analysis:
Total and Operating Revenue: The Total Revenue of JBL shows significant variation over the past periods, reaching a peak of $8,458M in August 2023 and subsequently decreasing to $6,767M by February 2024. This indicates a decline in operations or sales volume. Gross Profit Margins: Gross profit follows the same trend as revenue, peaking at $775M in November 2023 with a downward adjustment to $630M by February 2024. This suggests reduced profitability or potential pricing pressure.
Cost Management:
Cost of Revenue: Cost of Revenue is highest at $7,613M in November 2023, with overall costs remaining elevated which is indicative of high production or procurement costs. Operating Expense: Operating expenses spiked in November 2023 ($330M) but reduced slightly by February 2024 ($308M), showing some control in operational spending. Total Expenses: Mirroring other financial activities, total expenses were highest ($7,942M) in November 2023, decreasing afterwards.
Profitability Analysis:
EBITDA: EBITDA was highest in February 2024 at $1,259M, showing improvement in earnings before interest, taxes, depreciation, and amortization. Operating Income: Operating income saw a significant rise ($303M) by February 2024. Pretax Income: Reflecting operational improvements, pretax income reached over $1,060M as of February 2024. Net Income: A similar positive trajectory is observed in net income, jumping to $927M by February 2024.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation appears stable, slightly increasing to $150M by February 2024 compared to previous quarters. Interest Expense: Shows some fluctuations, recording $47M in February 2024 which is consistent with other quarters aside from a decrease in August 2023 when it was $10M.
Taxation:
Tax Rate: The tax rate fluctuated, with a notable decrease to 0.127 by February 2024 from earlier higher rates. Tax Provision: The tax provision increased over the periods, reflecting higher income, reaching $135M by February 2024. Tax Effect of Unusual Items: There have been fluctuations in the tax effects of unusual items, with a significant positive effect in February 2024 ($105M).
Shareholder Metrics:
Diluted and Basic EPS: Both EPS metrics saw large increases, with Diluted EPS increasing to 7.31 and Basic EPS to 7.41 by February 2024. Average Shares: The number of shares used in diluted earnings calculations was lower in February 2024 compared to earlier periods. Net Income Available to Common Stockholders: Consistently mirrors the net income, standing at $927M in February 2024.
Conclusion:
JBL demonstrated increased profitability and strong revenue recovery by February 2024, despite experiencing some cost pressures and erratic tax rates. Operational efficiency appears enhanced, and shareholder returns significantly improved based on EPS metrics. It is advisable for potential investors to consider the positive trends but remain cautious about revenue fluctuations and tax inconsistencies.