Debt-to-Equity Ratio

JBL’s debt-to-equity ratio of 2.55x means the company uses $2.55 of debt for every $1 of shareholder equity, indicating a high reliance on borrowed money that can increase financial risk.

This level is well above the sector median of 0.73x, placing JBL in the 91st percentile among its peers, meaning only 9% of comparable companies carry more debt relative to equity. The year-over-year change is not available, but the ratio decreased 11.5% quarter over quarter, from 2.88x to 2.55x, showing a recent reduction in leverage. While the high ratio suggests elevated risk compared to the sector, the quarterly decline points to a recent effort to improve the balance sheet. This mix of a still-elevated level combined with a downward trend may reduce some immediate risk but does not eliminate the concern of high debt. The metric supports the overall CAUTIOUS verdict because the debt-to-equity ratio remains far above the peer median, reinforcing caution despite the recent improvement.

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