We are not seeing that. So it’s not getting worse, but it’s not getting any better either. So there’s inventory and then on the interest side, obviously, the short end of the interest rate curve has steepened over the last 10 weeks, 12 weeks, notwithstanding the last three days or four days. The short-term borrowings that we have to finance our working capital has gone up as well. So it’s a little bit of a positive story and that our underlying business is performing really well. We are having some level of temporary issues with inventory and interest rates. If you look at the other side of that, when we come out of this at some point in time over the next three quarters, four quarters, interest rates, interest costs, everything should subside at our inventory levels should be much better as well.
So right now, our inventory is in that 68 days, 69 days sort of the net inventory that we have announced. The expectation is for it to be in the 60 days, 65 days in the medium-term and I actually expect it to go down to 55 days, 60 days in the long-term as well. So, plenty of positive momentum to come at some point in the future as well, Ruplu.
Mark Mondello: Hey, Ruplu. This is
Ruplu Bhattacharya: Okay.
Mark Mondello: Ruplu, this is Mark. If I could add a comment, listening to Mike’s response, with everything we got going on, the macro the way it is today, if you think about the back half of the year and again, adding to what Mike said, our DMS margins for the second half are going to be in the range of 5%, which is right where they thought — we thought they would be in September, and by the way, that’s with consumer getting hit pretty hard, at least temporarily. The EMS margins for the second half of the year are going to be in the range now of about 5%, maybe even slightly stronger, that’s going to be 30 bps, 40 bps higher than where we thought we would be in September. And the enterprise margin for the second half of the year is now also going to be in the range of 5%.
That’s 10 bps, 20 bps higher than what we thought it would be back in September. And then if you kind of take that tangentially in a different manner, we have got margins from 22% at an enterprise level of being 4.6%. And as you alluded to in your question, we are going to be up 30 bps at an enterprise level year-on-year. So all things considered, the business has been run and executed really, really well.
Ruplu Bhattacharya: Okay. Mark thanks for all the details there and congrats on the strong execution.
Mark Mondello: Yeah. Thank you.
Operator: Thank you. Next question is coming from Steven Fox from Fox Advisors. Your line is now live.
Steven Fox: Hi. Good morning. Two questions if I could. Just one follow-up on the auto details that you provided. When we think about the really tremendous growth you have had the last two years, I assume it slows next year. How do we think about sort of the impact this growth has had on margin mix, et cetera, and as it slows, what’s the impact to margins overall? And as a second question, I was just curious if you could expand on the comment about outsourcing accelerating in digital health and precision medicine, like, any further color around what that means for Jabil? Thanks.
Mark Mondello: Thanks, Steve. Are you saying or suggesting. I couldn’t quite hear you correctly. Are you saying automotive is going to slow next year?
Steven Fox: Well, I am assuming hitting 50% growth again for the third year in a row might be difficult, but I could be wrong on that?
Mark Mondello: So we have done.
