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 Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Johnson Controls International plc, income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
U.S. federal (165) (219) 459 309 (1,025) 515
U.S. state 105 53 108 72 (33) 34
Non-U.S. 413 294 265 264 213 605
Current 353 128 832 645 (845) 1,154
U.S. federal (267) (175) (7) (382) 412 (284)
U.S. state (25) (69) 46 (43) 84 (11)
Non-U.S. (384) 103 (3) (112) 116 (341)
Deferred (676) (141) 36 (537) 612 (636)
Income tax provision (benefit) (323) (13) 868 108 (233) 518

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Johnson Controls International plc current decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Johnson Controls International plc deferred decreased from 2021 to 2022 and from 2022 to 2023.
Income tax provision (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Johnson Controls International plc income tax provision (benefit) decreased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Johnson Controls International plc, effective income tax rate (EITR) reconciliation

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Ireland statutory rate 12.50% 12.50% 12.50% 12.50% 12.50% 12.50%
Effective tax rate -19.00% -1.00% 33.00% 12.00% -22.00% 18.00%

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
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Johnson Controls International plc effective tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Johnson Controls International plc, components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Accrued expenses and reserves 507 376 407 474 437 490
Employee and retiree benefits 71 77 148 286 265 193
Property, plant and equipment 629 444 369 182 — —
Net operating loss and other credit carryforwards 6,748 6,472 6,293 6,306 5,664 6,510
Research and development 171 52 42 112 106 93
Operating lease liabilities 348 309 334 — — —
Other, net 38 58 28 99 — —
Deferred tax assets 8,512 7,788 7,621 7,459 6,472 7,286
Valuation allowances (6,378) (5,967) (5,853) (5,518) (5,068) (5,195)
Deferred tax assets, less valuation allowances 2,134 1,821 1,768 1,941 1,404 2,091
Property, plant and equipment — — — — (139) (172)
Subsidiaries, joint ventures and partnerships (446) (338) (346) (730) (499) (306)
Intangible assets (252) (730) (776) (734) (759) (713)
Operating lease right-of-use assets (348) (309) (334) — — —
Other, net — — — — (43) (72)
Deferred tax liabilities (1,046) (1,377) (1,456) (1,464) (1,440) (1,263)
Net deferred tax asset (liability) 1,088 444 312 477 (36) 828

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
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Johnson Controls International plc deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, less valuation allowances Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Johnson Controls International plc deferred tax assets, less valuation allowances increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Johnson Controls International plc net deferred tax asset (liability) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Johnson Controls International plc, deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Deferred tax assets (included in Other noncurrent assets) 1,499 944 755 862 552 1,591
Deferred tax liabilities (included in Other noncurrent liabilities) 411 500 443 385 588 763

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
Deferred tax assets (included in Other noncurrent assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Johnson Controls International plc deferred tax assets (included in Other noncurrent assets) increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities (included in Other noncurrent liabilities) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Johnson Controls International plc deferred tax liabilities (included in Other noncurrent liabilities) increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 1,499 944 755 862 552 1,591
Total assets (adjusted) 40,743 41,214 41,135 39,953 41,735 47,206
Adjustment to Total Liabilities
Total liabilities (as reported) 24,548 24,756 23,137 22,282 21,458 26,339
Less: Noncurrent deferred tax liabilities, net 411 500 443 385 588 763
Total liabilities (adjusted) 24,137 24,256 22,694 21,897 20,870 25,576
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: Net deferred tax assets (liabilities) 1,088 444 312 477 (36) 828
Shareholders’ equity attributable to Johnson Controls (adjusted) 15,457 15,824 17,250 16,970 19,802 20,336
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: Deferred income tax expense (benefit) (676) (141) 36 (537) 612 (636)
Net income attributable to Johnson Controls (adjusted) 1,173 1,391 1,673 94 6,286 1,526

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 Deferred Taxes (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 4.38% 5.50% 7.07% 0.42% 26.23% 4.86%
Total Asset Turnover
Reported total asset turnover 0.63 0.60 0.57 0.55 0.57 0.64
Adjusted total asset turnover 0.66 0.61 0.58 0.56 0.57 0.67
Financial Leverage
Reported financial leverage 2.55 2.59 2.39 2.34 2.14 2.31
Adjusted financial leverage 2.64 2.60 2.38 2.35 2.11 2.32
Return on Equity (ROE)
Reported ROE 11.18% 9.42% 9.32% 3.62% 28.71% 10.22%
Adjusted ROE 7.59% 8.79% 9.70% 0.55% 31.74% 7.50%
Return on Assets (ROA)
Reported ROA 4.38% 3.63% 3.91% 1.55% 13.42% 4.43%
Adjusted ROA 2.88% 3.38% 4.07% 0.24% 15.06% 3.23%

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 total revenue. Johnson Controls International plc adjusted net profit margin ratio deteriorated 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 financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Johnson Controls International plc adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Johnson Controls International plc adjusted ROE deteriorated 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 deteriorated 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Johnson Controls 1,173 1,391 1,673 94 6,286 1,526
Net sales 26,793 25,299 23,668 22,317 23,968 31,400
Profitability Ratio
Adjusted net profit margin2 4.38% 5.50% 7.07% 0.42% 26.23% 4.86%

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 × 1,173 ÷ 26,793 = 4.38%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Johnson Controls International plc adjusted net profit margin ratio deteriorated 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 26,793 25,299 23,668 22,317 23,968 31,400
Adjusted total assets 40,743 41,214 41,135 39,953 41,735 47,206
Activity Ratio
Adjusted total asset turnover2 0.66 0.61 0.58 0.56 0.57 0.67

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 ÷ 40,743 = 0.66

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 40,743 41,214 41,135 39,953 41,735 47,206
Adjusted shareholders’ equity attributable to Johnson Controls 15,457 15,824 17,250 16,970 19,802 20,336
Solvency Ratio
Adjusted financial leverage2 2.64 2.60 2.38 2.35 2.11 2.32

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
= 40,743 ÷ 15,457 = 2.64

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Johnson Controls International plc adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Johnson Controls 1,173 1,391 1,673 94 6,286 1,526
Adjusted shareholders’ equity attributable to Johnson Controls 15,457 15,824 17,250 16,970 19,802 20,336
Profitability Ratio
Adjusted ROE2 7.59% 8.79% 9.70% 0.55% 31.74% 7.50%

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 × 1,173 ÷ 15,457 = 7.59%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Johnson Controls International plc adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Johnson Controls 1,173 1,391 1,673 94 6,286 1,526
Adjusted total assets 40,743 41,214 41,135 39,953 41,735 47,206
Profitability Ratio
Adjusted ROA2 2.88% 3.38% 4.07% 0.24% 15.06% 3.23%

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 × 1,173 ÷ 40,743 = 2.88%

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 deteriorated from 2021 to 2022 and from 2022 to 2023.