Jabil Inc. provides electronic manufacturing services and solutions worldwide. The company operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It provides electronics design, production, and product management services. The company offers electronic circuit design services, including application-specific integrated circuit design, firmware development, and rapid prototyping services, as well as designs plastic and metal enclosures that comprise the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also specializes in three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as the provision of various industrial design, advance mechanism development, and tooling management services. In addition, the company offers computer-assisted design services, such as PCBA design, and PCBA design validation and verification services, as well as other consulting services, which include the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it provides product and process validation services that comprise product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company offers systems assembly, test, direct-order fulfillment, and configure-to-order services. It provides its services to companies in the automotive, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, emerging growth, healthcare, industrial and energy, mobility, networking and telecommunications, packaging, point of sale, and printing industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in St. Petersburg, Florida.
Business Analysis of Jabil Circuit
The Technology Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Jabil Circuit compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Jabil Circuit to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Jabil Circuit with an interactive chart.
- Revenue Growth: Jabil Circuit reported a revenue growth of 2.5% year-on-year during 2016. Other Industry grew at 0.0% in the same period
- COGS share of Revenues: As a percentage of revenue, Jabil Circuit spent 91.7% of its total revenues on COGS. Other industry average (COGS share of revenue) in the same period was 80.7%
- R&D share of Revenues: As a percentage of revenue, Jabil Circuit spent 0.2% of its total revenues on R&D. Other industry average R&D spending in the same period was 2.4%
- SG&A share of Revenues: As a percentage of revenue, Jabil Circuit spent 5.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Other industry average SG&A spending in the same period was 10.3%
- Inventory share of Revenues: As a percentage of revenue, Jabil Circuit spent 13.4% of its total revenues on Inventories. Other industry average Inventory spending in the same period was 10.4%
- Accounts Payable share of Revenues: As a percentage of revenue, Jabil Circuit invested 19.6% of its total revenues on Accounts Payable (A/P) Other industry average Accounts Payable investment in the same period was 13.2%
- Accounts Receivable share of Revenues: As a percentage of revenue, Jabil Circuit invested 7.4% of its total revenues on Accounts Receivable (A/R). Other industry average Accounts Receivable investment in the same period was 15.6%
- PP&E share of Revenues: As a percentage of revenue, Jabil Circuit invested 18.2% of its total revenues on Property, Plants, and Equipments (PP&E). Other industry average PPE investment in the same period was 13.4%
- Intangibles share of Revenues: As a percentage of revenue, Jabil Circuit invested 4.9% of its total revenues on Intangibles. Other industry average Intangibles investment in the same period was 22.4%
- Net Margins: Jabil Circuit Net Margins in the year 2016 were 1.4%. Other industry average Net Margins in the same period were 4.6%
Sector and Industry Association of Jabil Circuit
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Jabil Circuit is associated with Technology Sector and Technology-Other Industry.
Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:
- Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
- Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
- Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
- IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
- Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
- Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
- Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.
Industry Ranking of Jabil Circuit
With $18.4 billion revenues, Jabil Circuit ranked number 5 of all the companies in the US Technology-Other industry. There were a total of 44 public companies in the US Technology-Other industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Technology-Other industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Jabil Circuitand its peers on select key performance indicators by clicking the reports provided below