Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Johnson Controls International plc, ROIC calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,892) | 1,860) | 2,084) | 448) | 2,126) | 2,175) | |
| Invested capital2 | 29,464) | 29,496) | 29,338) | 29,283) | 31,274) | 35,173) | |
| Performance Ratio | |||||||
| ROIC3 | 6.42% | 6.31% | 7.10% | 1.53% | 6.80% | 6.18% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Boeing Co. | -0.17% | -5.73% | -5.36% | -17.44% | -3.49% | — | |
| Caterpillar Inc. | 17.41% | 13.36% | 12.38% | 6.44% | 11.83% | — | |
| Eaton Corp. plc | 10.48% | 8.00% | 7.84% | 5.61% | 7.87% | — | |
| GE Aerospace | 20.95% | 2.73% | -2.53% | 5.22% | 2.37% | — | |
| Honeywell International Inc. | 12.37% | 11.54% | 12.33% | 10.85% | 15.49% | — | |
| Lockheed Martin Corp. | 25.46% | 21.60% | 22.51% | 25.67% | 26.53% | — | |
| RTX Corp. | 3.68% | 4.11% | 4.41% | -1.38% | 7.00% | — | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,892 ÷ 29,464 = 6.42%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Johnson Controls International plc ROIC deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Decomposition of ROIC
Johnson Controls International plc, decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Johnson Controls International plc, OPM calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,892) | 1,860) | 2,084) | 448) | 2,126) | 2,175) | |
| Add: Cash operating taxes2 | 395) | 159) | 861) | 675) | (806) | 1,210) | |
| Net operating profit before taxes (NOPBT) | 2,287) | 2,019) | 2,946) | 1,124) | 1,320) | 3,385) | |
| Net sales | 26,793) | 25,299) | 23,668) | 22,317) | 23,968) | 31,400) | |
| Add: Increase (decrease) in deferred revenue | 192) | 131) | 202) | 28) | 81) | 47) | |
| Adjusted net sales | 26,985) | 25,430) | 23,870) | 22,345) | 24,049) | 31,447) | |
| Profitability Ratio | |||||||
| OPM3 | 8.48% | 7.94% | 12.34% | 5.03% | 5.49% | 10.76% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Boeing Co. | 0.85% | -3.49% | -3.17% | -20.02% | -1.80% | — | |
| Caterpillar Inc. | 20.95% | 17.38% | 18.88% | 11.93% | 16.28% | — | |
| Eaton Corp. plc | 17.76% | 14.81% | 15.90% | 11.40% | 13.19% | — | |
| GE Aerospace | 17.53% | 4.46% | -2.35% | 12.65% | 6.66% | — | |
| Honeywell International Inc. | 20.28% | 19.83% | 21.58% | 20.26% | 21.22% | — | |
| Lockheed Martin Corp. | 13.04% | 11.60% | 11.85% | 13.19% | 12.87% | — | |
| RTX Corp. | 7.71% | 10.88% | 9.65% | -1.08% | 12.79% | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 2,287 ÷ 26,985 = 8.48%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Johnson Controls International plc OPM deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Turnover of Capital (TO)
Johnson Controls International plc, TO calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 26,793) | 25,299) | 23,668) | 22,317) | 23,968) | 31,400) | |
| Add: Increase (decrease) in deferred revenue | 192) | 131) | 202) | 28) | 81) | 47) | |
| Adjusted net sales | 26,985) | 25,430) | 23,870) | 22,345) | 24,049) | 31,447) | |
| Invested capital1 | 29,464) | 29,496) | 29,338) | 29,283) | 31,274) | 35,173) | |
| Efficiency Ratio | |||||||
| TO2 | 0.92 | 0.86 | 0.81 | 0.76 | 0.77 | 0.89 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Boeing Co. | 1.73 | 1.31 | 1.26 | 1.22 | 2.15 | — | |
| Caterpillar Inc. | 1.11 | 1.03 | 0.87 | 0.72 | 0.92 | — | |
| Eaton Corp. plc | 0.74 | 0.67 | 0.67 | 0.65 | 0.73 | — | |
| GE Aerospace | 1.29 | 1.10 | 0.99 | 0.63 | 0.67 | — | |
| Honeywell International Inc. | 0.76 | 0.76 | 0.72 | 0.67 | 0.86 | — | |
| Lockheed Martin Corp. | 2.46 | 2.48 | 2.34 | 2.33 | 2.33 | — | |
| RTX Corp. | 0.62 | 0.59 | 0.56 | 0.49 | 0.75 | — | |
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).
1 Invested capital. See details »
2 2023 Calculation
TO = Adjusted net sales ÷ Invested capital
= 26,985 ÷ 29,464 = 0.92
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Johnson Controls International plc TO improved from 2021 to 2022 and from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Johnson Controls International plc, CTR calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,892) | 1,860) | 2,084) | 448) | 2,126) | 2,175) | |
| Add: Cash operating taxes2 | 395) | 159) | 861) | 675) | (806) | 1,210) | |
| Net operating profit before taxes (NOPBT) | 2,287) | 2,019) | 2,946) | 1,124) | 1,320) | 3,385) | |
| Tax Rate | |||||||
| CTR3 | 17.28% | 7.86% | 29.24% | 60.12% | -61.09% | 35.74% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Boeing Co. | 111.76% | — | — | — | — | — | |
| Caterpillar Inc. | 25.26% | 25.48% | 24.33% | 25.06% | 21.38% | — | |
| Eaton Corp. plc | 20.06% | 19.89% | 26.02% | 24.39% | 17.70% | — | |
| GE Aerospace | 7.01% | 44.47% | — | 34.06% | 47.14% | — | |
| Honeywell International Inc. | 19.41% | 23.25% | 20.13% | 20.56% | 15.05% | — | |
| Lockheed Martin Corp. | 20.72% | 24.95% | 18.89% | 16.51% | 11.49% | — | |
| RTX Corp. | 22.52% | 36.10% | 18.64% | — | 26.56% | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 395 ÷ 2,287 = 17.28%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Johnson Controls International plc CTR decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |