Stock Analysis on Net
Stock Analysis on Net

Johnson Controls International plc (NYSE:JCI)

This company has been moved to the archive! The financial data has not been updated since May 1, 2024.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Johnson Controls International plc, balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Goodwill 17,936 17,328 18,335 17,932 18,178 19,473
Technology 1,575 1,353 1,464 1,332 1,307 1,334
Customer relationships 3,047 2,742 3,097 2,773 2,722 3,078
Miscellaneous 889 756 750 657 584 496
Definite-lived intangible assets, gross carrying amount 5,511 4,851 5,311 4,762 4,613 4,908
Accumulated amortization (2,737) (2,298) (2,174) (1,734) (1,353) (1,130)
Definite-lived intangible assets, net 2,774 2,553 3,137 3,028 3,260 3,778
Trademarks/tradenames 2,114 2,088 2,332 2,248 2,282 2,448
Miscellaneous — — 80 80 90 122
Indefinite-lived intangible assets 2,114 2,088 2,412 2,328 2,372 2,570
Intangible assets 4,888 4,641 5,549 5,356 5,632 6,348
Goodwill and other intangible assets 22,824 21,969 23,884 23,288 23,810 25,821

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Johnson Controls International plc goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Johnson Controls International plc intangible assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Johnson Controls International plc goodwill and other intangible assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Johnson Controls International plc, adjustments to financial statements

US$ in millions

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Adjustment to Total Assets
Total assets (as reported) 42,242 42,158 41,890 40,815 42,287 48,797
Less: Goodwill 17,936 17,328 18,335 17,932 18,178 19,473
Total assets (adjusted) 24,306 24,830 23,555 22,883 24,109 29,324
Adjustment to Shareholders’ Equity Attributable To Johnson Controls
Shareholders’ equity attributable to Johnson Controls (as reported) 16,545 16,268 17,562 17,447 19,766 21,164
Less: Goodwill 17,936 17,328 18,335 17,932 18,178 19,473
Shareholders’ equity attributable to Johnson Controls (adjusted) (1,391) (1,060) (773) (485) 1,588 1,691
Adjustment to Net Income Attributable To Johnson Controls
Net income attributable to Johnson Controls (as reported) 1,849 1,532 1,637 631 5,674 2,162
Add: Goodwill impairment charge 184 310 — 424 — —
Net income attributable to Johnson Controls (adjusted) 2,033 1,842 1,637 1,055 5,674 2,162

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

Johnson Controls International plc, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Johnson Controls International plc, adjusted financial ratios

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Net Profit Margin
Reported net profit margin 6.90% 6.06% 6.92% 2.83% 23.67% 6.89%
Adjusted net profit margin 7.59% 7.28% 6.92% 4.73% 23.67% 6.89%
Total Asset Turnover
Reported total asset turnover 0.63 0.60 0.57 0.55 0.57 0.64
Adjusted total asset turnover 1.10 1.02 1.00 0.98 0.99 1.07
Financial Leverage
Reported financial leverage 2.55 2.59 2.39 2.34 2.14 2.31
Adjusted financial leverage — — — — 15.18 17.34
Return on Equity (ROE)
Reported ROE 11.18% 9.42% 9.32% 3.62% 28.71% 10.22%
Adjusted ROE — — — — 357.30% 127.85%
Return on Assets (ROA)
Reported ROA 4.38% 3.63% 3.91% 1.55% 13.42% 4.43%
Adjusted ROA 8.36% 7.42% 6.95% 4.61% 23.53% 7.37%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Johnson Controls International plc adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Johnson Controls International plc adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Johnson Controls International plc adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Johnson Controls International plc, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Johnson Controls 1,849 1,532 1,637 631 5,674 2,162
Net sales 26,793 25,299 23,668 22,317 23,968 31,400
Profitability Ratio
Net profit margin1 6.90% 6.06% 6.92% 2.83% 23.67% 6.89%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Johnson Controls 2,033 1,842 1,637 1,055 5,674 2,162
Net sales 26,793 25,299 23,668 22,317 23,968 31,400
Profitability Ratio
Adjusted net profit margin2 7.59% 7.28% 6.92% 4.73% 23.67% 6.89%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

2023 Calculations

1 Net profit margin = 100 × Net income attributable to Johnson Controls ÷ Net sales
= 100 × 1,849 ÷ 26,793 = 6.90%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Johnson Controls ÷ Net sales
= 100 × 2,033 ÷ 26,793 = 7.59%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Johnson Controls International plc adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales 26,793 25,299 23,668 22,317 23,968 31,400
Total assets 42,242 42,158 41,890 40,815 42,287 48,797
Activity Ratio
Total asset turnover1 0.63 0.60 0.57 0.55 0.57 0.64
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 26,793 25,299 23,668 22,317 23,968 31,400
Adjusted total assets 24,306 24,830 23,555 22,883 24,109 29,324
Activity Ratio
Adjusted total asset turnover2 1.10 1.02 1.00 0.98 0.99 1.07

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

2023 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 26,793 ÷ 42,242 = 0.63

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 26,793 ÷ 24,306 = 1.10

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Johnson Controls International plc adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 42,242 42,158 41,890 40,815 42,287 48,797
Shareholders’ equity attributable to Johnson Controls 16,545 16,268 17,562 17,447 19,766 21,164
Solvency Ratio
Financial leverage1 2.55 2.59 2.39 2.34 2.14 2.31
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 24,306 24,830 23,555 22,883 24,109 29,324
Adjusted shareholders’ equity attributable to Johnson Controls (1,391) (1,060) (773) (485) 1,588 1,691
Solvency Ratio
Adjusted financial leverage2 — — — — 15.18 17.34

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

2023 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity attributable to Johnson Controls
= 42,242 ÷ 16,545 = 2.55

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity attributable to Johnson Controls
= 24,306 ÷ -1,391 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Johnson Controls 1,849 1,532 1,637 631 5,674 2,162
Shareholders’ equity attributable to Johnson Controls 16,545 16,268 17,562 17,447 19,766 21,164
Profitability Ratio
ROE1 11.18% 9.42% 9.32% 3.62% 28.71% 10.22%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Johnson Controls 2,033 1,842 1,637 1,055 5,674 2,162
Adjusted shareholders’ equity attributable to Johnson Controls (1,391) (1,060) (773) (485) 1,588 1,691
Profitability Ratio
Adjusted ROE2 — — — — 357.30% 127.85%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

2023 Calculations

1 ROE = 100 × Net income attributable to Johnson Controls ÷ Shareholders’ equity attributable to Johnson Controls
= 100 × 1,849 ÷ 16,545 = 11.18%

2 Adjusted ROE = 100 × Adjusted net income attributable to Johnson Controls ÷ Adjusted shareholders’ equity attributable to Johnson Controls
= 100 × 2,033 ÷ -1,391 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Johnson Controls 1,849 1,532 1,637 631 5,674 2,162
Total assets 42,242 42,158 41,890 40,815 42,287 48,797
Profitability Ratio
ROA1 4.38% 3.63% 3.91% 1.55% 13.42% 4.43%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Johnson Controls 2,033 1,842 1,637 1,055 5,674 2,162
Adjusted total assets 24,306 24,830 23,555 22,883 24,109 29,324
Profitability Ratio
Adjusted ROA2 8.36% 7.42% 6.95% 4.61% 23.53% 7.37%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

2023 Calculations

1 ROA = 100 × Net income attributable to Johnson Controls ÷ Total assets
= 100 × 1,849 ÷ 42,242 = 4.38%

2 Adjusted ROA = 100 × Adjusted net income attributable to Johnson Controls ÷ Adjusted total assets
= 100 × 2,033 ÷ 24,306 = 8.36%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Johnson Controls International plc adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.