Johnson Controls International plc (NYSE:JCI)

Total Asset Turnover

The reported total asset turnover shows a declining trend from 0.64 in 2018 to a low of 0.55 in 2020, followed by a gradual increase reaching 0.63 by 2023. The adjusted total asset turnover mirrors this pattern, starting at 0.65 in 2018, dipping slightly in the subsequent years, and then improving consistently to 0.66 in 2023. This suggests an initial reduction in asset efficiency during the earlier years, with recovery and enhanced utilization in the more recent periods.

Current Ratio

The reported current ratio increased from 1.05 in 2018 to a peak of 1.37 in 2019, then declined progressively, falling below 1.0 to 0.97 in 2023. The adjusted current ratio displays a similar trend but at higher values, ascending from 1.25 in 2018 to 1.68 in 2019, subsequently decreasing to 1.21 in 2023. This indicates a strengthening of short-term liquidity in 2019, which has since weakened, though adjusted figures suggest a more robust liquidity position overall.

Debt to Equity Ratio

Both the reported and adjusted debt to equity ratios declined from approximately 0.52 in 2018 to their lowest points around 0.37 in 2019, followed by fluctuations and a moderate increase peaking near 0.55 in 2023. This pattern reflects a reduction in leverage during 2019, with subsequent incremental increases, hinting at a cautious approach to debt levels over time.

Debt to Capital Ratio

The reported and adjusted debt to capital ratios both demonstrate a consistent pattern, declining from 0.34 in 2018 to around 0.27 in 2019, then rising gradually to approximately 0.35 by 2023. This marginal increase in debt proportion relative to capital indicates a slight trend towards higher leverage after a dip in 2019.

Financial Leverage

Reported financial leverage decreased from 2.31 in 2018 to 2.14 in 2019 but then increased consistently to 2.59 in 2022, slightly retreating to 2.55 in 2023. Adjusted financial leverage follows a similar but generally lower trajectory, beginning at 2.07 in 2018, dipping to 1.90 in 2019, and rising to 2.19 in 2022 before a minor decline to 2.17. These movements suggest an initial reduction in leverage, followed by increased use of debt or financial obligations to support assets, peaking in 2022.

Net Profit Margin

The reported net profit margin exhibited significant volatility, surging to 23.67% in 2019 before plunging to 2.83% in 2020, then stabilizing around 6%-7% in subsequent years. The adjusted net profit margin shows a steadier but lower range, increasing modestly from 3.95% in 2018 to 6.21% in 2019, then falling sharply to 1.33% in 2020, recovering to a peak of 9.47% in 2021 before declining again. This suggests episodic spikes possibly influenced by extraordinary events or accounting adjustments, with underlying profitability remaining more moderate and variable.

Return on Equity (ROE)

The reported ROE follows a pattern similar to net profit margin, peaking at 28.71% in 2019, dramatically declining to 3.62% in 2020, and recovering to about 11% by 2023. The adjusted ROE, starting at 5.29% in 2018, rises to 6.6% in 2019, drops to 1.5% in 2020, then surges to 11.14% in 2021 before settling near 8% in 2023. This data indicates variability in returns to shareholders, with 2019 as an exceptional year, followed by a temporary downturn and gradual recovery.

Return on Assets (ROA)

The reported ROA increased sharply from 4.43% in 2018 to 13.42% in 2019, then decreased to 1.55% in 2020, recovering moderately to 4.38% by 2023. The adjusted ROA trends similarly but at lower values, rising from 2.56% in 2018 to 3.47% in 2019, dipping to 0.74% in 2020, and increasing to 3.72% in 2023. This indicates fluctuating efficiency in asset utilization to generate profits, with marked declines in 2020 and gradual improvement thereafter.

The financial data displays several notable trends over the six-year period ending in September 2023. Net sales experienced a pronounced decline from 2018 to 2020, decreasing from 31,400 million US dollars to 22,317 million US dollars. This was followed by a gradual recovery, with net sales increasing each year thereafter to reach 26,793 million US dollars in 2023. Adjusted net sales follow a similar trajectory, confirming this general pattern of initial contraction followed by recovery and growth.

Total assets show a consistent downward trend from 2018 through 2020, declining from 48,797 million US dollars to 40,815 million US dollars. After this point, total assets stabilized, remaining relatively flat between 41,158 million and 42,242 million US dollars through the subsequent years. Adjusted total assets also illustrate a decline in the earlier years, with a peak in 2019 before reducing and then maintaining a level close to 40,833 million US dollars by 2023.

The measures of asset turnover provide insights into efficiency improvements over the period. Reported total asset turnover decreased from 0.64 in 2018 to 0.55 in 2020, indicating a decline in the efficiency of generating sales from assets initially. However, from 2020 onwards, this ratio shows a gradual upward trend, rising back to 0.63 by 2023, reflecting an enhancement in asset utilization. Adjusted total asset turnover similarly decreases initially but rebounds more strongly, reaching 0.66 in 2023, suggesting adjusted figures may capture efficiency gains slightly more favorably.

In summary, the data indicates an initial period of contraction in sales and asset base through 2020, likely reflecting challenging business conditions. Subsequent years reveal a recovery in sales accompanied by stabilizing asset levels. The improving asset turnover ratios imply a positive trend in operational efficiency, with the company generating more sales per unit of asset over time. This combination of stabilizing asset investment with improving turnover rates is indicative of enhanced asset management and operational performance in recent years.

Current Assets

Current assets demonstrated variability over the analyzed period. Beginning at 11,823 million USD in 2018, there was an increase to 12,393 million USD in 2019, followed by a decline in 2020 to 10,053 million USD. The level remained relatively stable in 2021 at 9,998 million USD, and then increased again to 11,685 million USD in 2022 but declined to 10,737 million USD in 2023.

Current Liabilities

Current liabilities exhibited a decreasing trend from 11,250 million USD in 2018 to 8,248 million USD in 2020. However, the liabilities rose in 2021 to 9,098 million USD and continued to increase to 11,239 million USD by 2022 before a slight reduction to 11,084 million USD in 2023.

Reported Current Ratio

The reported current ratio improved from 1.05 in 2018 to a peak of 1.37 in 2019, indicating improving short-term liquidity. This ratio then declined steadily over the following years to 0.97 in 2023, suggesting a weakening in the ability to cover current liabilities with current assets under the reported figures.

Adjusted Current Assets

Adjusted current assets mirrored the pattern of unadjusted current assets, increasing from 12,000 million USD in 2018 to 12,566 million USD in 2019, then falling sharply in 2020 to 10,226 million USD. The figures stabilized near 10,108 million USD in 2021 and increased again to 11,747 million USD in 2022 before decreasing to 10,827 million USD in 2023.

Adjusted Current Liabilities

Adjusted current liabilities showed a consistent decline from 9,597 million USD in 2018 to 6,669 million USD in 2020. Subsequently, there was a rebound to 7,359 million USD in 2021, followed by increases to 9,389 million USD in 2022 and a slight decrease to 8,983 million USD in 2023.

Adjusted Current Ratio

The adjusted current ratio outperformed the reported ratio throughout the timeframe, peaking at 1.68 in 2019. Although the ratio declined after 2019, it remained above 1.2 by 2023, ending at 1.21. This shows that when adjustments are applied, the company's short-term liquidity appears stronger and more stable compared to the reported metrics.

Summary Insights

The overall trend indicates some volatility in both assets and liabilities, with a notable decline in liquidity according to the reported current ratio that falls below 1 in the final year, signaling potential concerns in meeting short-term obligations. However, the adjusted figures present a more optimistic position with a consistently higher current ratio, indicating that adjustments may exclude certain liabilities or include additional liquid assets. The fluctuation in liabilities, especially their reduction in 2020 followed by increases in the succeeding years, suggests changing operational or financing activities affecting short-term obligations. The adjusted ratios support a stronger liquidity profile across the period, which may reflect management’s efforts or accounting adjustments that improve the apparent financial stability.

Total debt

The total debt demonstrates a significant decline from 10,995 million USD in 2018 to 7,219 million USD in 2019, indicating a reduction in leverage. However, from 2019 onwards, total debt shows a gradual increase, rising to 7,819 million USD in 2020 and then slightly fluctuating to 8,848 million USD by 2023. This reflects a trend of increasing indebtedness after the initial reduction.

Shareholders’ equity attributable to Johnson Controls

Shareholders’ equity steadily declines over the observed period, dropping from 21,164 million USD in 2018 to 16,545 million USD in 2023. This downward trend suggests a reduction in the company’s net asset base attributable to shareholders, which may impact financial stability and shareholder value.

Reported debt to equity ratio

The reported debt to equity ratio follows a similar pattern to total debt and equity changes. It declines significantly from 0.52 in 2018 to 0.37 in 2019, implying improved solvency. Thereafter, it gradually increases, reaching 0.55 in 2022, before slightly decreasing to 0.53 in 2023. This ratio indicates that the company’s leverage has risen somewhat since 2019 but remains below the 2018 level.

Adjusted total debt

Adjusted total debt shows a pattern similar to reported total debt but at slightly higher values. Starting at 12,091 million USD in 2018, it decreases to 8,304 million USD in 2019, then rises consistently until reaching 10,252 million USD in 2023. This trend confirms a reduction in leverage initially, followed by a steady increase in debt obligations over recent years.

Adjusted total equity

Adjusted total equity declines throughout the period, moving from 23,460 million USD in 2018 to 18,797 million USD in 2023. The decrease is more moderate compared to the unadjusted equity but nonetheless indicates a sustained erosion in the equity base.

Adjusted debt to equity ratio

The adjusted debt to equity ratio mirrors the reported debt to equity trend, declining sharply from 0.52 in 2018 to 0.37 in 2019, reflecting deleveraging. Subsequently, it increases steadily each year, peaking at 0.55 in 2023, illustrating a return to higher leverage levels while still remaining close to the initial 2018 level. This ratio reinforces the conclusion that the company reduced leverage initially but has experienced incremental increases in debt relative to equity since 2019.

Total Debt

The total debt declined significantly from 10,995 million US dollars in September 2018 to 7,219 million in September 2019. It then increased moderately to 7,819 million in 2020 and remained relatively stable around 7,740 million in 2021. From 2021 to 2022, total debt rose again to 8,960 million and slightly decreased to 8,848 million in 2023.

Total Capital

Total capital showed a downward trend from 32,159 million US dollars in 2018 to 25,266 million in 2020. It stabilized around 25,300 million in 2021 and remained nearly constant through 2023, ending at 25,393 million. The most pronounced decrease occurred between 2018 and 2020, after which the capital base maintained a steady level.

Reported Debt to Capital Ratio

The reported debt to capital ratio mirrored the movement in debt and capital. It decreased from 0.34 in 2018 to 0.27 in 2019, reflecting reduced debt relative to capital. The ratio increased to 0.31 in 2020 and remained stable through 2021. From 2021 onward, it rose again to 0.36 in 2022 before slightly declining to 0.35 in 2023, suggesting increased leverage in recent years compared to the 2019 low.

Adjusted Total Debt

Adjusted total debt followed a trend similar to total debt, falling sharply from 12,091 million US dollars in 2018 to 8,304 million in 2019. It then experienced a gradual increase each year, reaching 10,252 million by 2023. The steady rise after 2019 indicates increasing debt obligations when adjusted for certain factors.

Adjusted Total Capital

Adjusted total capital declined from 35,551 million in 2018 to 28,834 million in 2020, with a slight recovery to 29,404 million in 2021. Thereafter, it slightly decreased to 29,097 million in 2022 and 29,049 million in 2023. This reflects a reduction in the broader base of capital during the initial years, followed by stabilization in the latest periods.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio showed a decrease from 0.34 in 2018 to 0.27 in 2019, consistent with the overall reduction in adjusted debt relative to adjusted capital. The ratio rose to 0.31 in 2020 and 2021, then increased further to 0.35 in 2022 and 2023. This upward movement in recent years indicates a rise in leverage on an adjusted basis, aligning with the behavior observed in reported figures.

Total assets

Total assets decreased significantly from 48,797 million USD in 2018 to 40,815 million USD in 2020, indicating a contraction in the asset base during this period. From 2020 onward, total assets stabilized, showing a modest increase to 42,242 million USD by 2023, suggesting a period of asset base recovery and relative stability.

Shareholders’ equity attributable to Johnson Controls

Shareholders' equity exhibited a downward trend from 21,164 million USD in 2018 to 17,447 million USD in 2020. Following this decline, equity stayed relatively steady through 2023, ending slightly lower at 16,545 million USD compared to prior years. This trend reflects a decrease in net assets available to shareholders over the period assessed.

Reported financial leverage

The reported financial leverage ratio decreased from 2.31 in 2018 to 2.14 in 2019 but then increased gradually to a peak of 2.59 in 2022, before slightly declining to 2.55 in 2023. The overall trajectory indicates a trend of increasing leverage over the more recent years, suggesting a growing reliance on debt or other liabilities relative to equity.

Adjusted total assets

Adjusted total assets decreased sharply from 48,479 million USD in 2018 to 40,126 million USD in 2020, mirroring the trend in unadjusted total assets but with a slightly more pronounced decline. From 2020 to 2023, adjusted total assets remained relatively flat, indicating stabilization within the company’s asset base under adjusted accounting treatments.

Adjusted total equity

Adjusted total equity also saw a decline from 23,460 million USD in 2018 to 19,808 million USD in 2020. After this downturn, adjusted equity levels showed modest fluctuations, ending at 18,797 million USD in 2023. The decline and subsequent stabilization imply a decrease in equity strength, but with less volatility in adjusted terms.

Adjusted financial leverage

The adjusted financial leverage ratio declined from 2.07 in 2018 to 1.90 in 2019, before rising gradually to 2.19 in 2022 and slightly decreasing to 2.17 in 2023. This pattern suggests that despite fluctuations, the company’s leverage adjusted for accounting factors remained relatively moderate and followed a similar upward trend as the reported leverage, although levels are consistently lower by comparison.

Net Income Attributable to Johnson Controls

The net income shows notable volatility over the six-year period. It increased sharply from 2,162 million USD in 2018 to a peak of 5,674 million USD in 2019, followed by a steep decline to 631 million USD in 2020. Subsequently, net income gradually recovered, reaching 1,637 million USD in 2021, slightly decreasing to 1,532 million USD in 2022, and increasing again to 1,849 million USD in 2023. The trend indicates significant fluctuations with a recovery phase after the 2020 low.

Net Sales

Net sales experienced a decline from 31,400 million USD in 2018 to 22,317 million USD in 2020, representing a substantial decrease over this period. From 2020 onwards, sales demonstrated a gradual uptick, increasing to 23,668 million USD in 2021, 25,299 million USD in 2022, and further to 26,793 million USD in 2023. Despite this recovery, the sales at the end of the period remain below the 2018 peak.

Reported Net Profit Margin

The reported net profit margin fluctuated significantly, mirroring the trend in net income. A sharp increase from 6.89% in 2018 to 23.67% in 2019 was followed by a drastic decline to 2.83% in 2020. Margins improved modestly to 6.92% in 2021 before declining slightly to 6.06% in 2022 and rising again to 6.9% in 2023. This pattern reflects the volatility in profitability experienced during this timeframe.

Adjusted Net Income

Adjusted net income reveals a different dynamic with less pronounced peaks but still significant variability. Starting at 1,242 million USD in 2018, it increased slightly to 1,494 million USD in 2019. It then declined to a low of 298 million USD in 2020, rebounded strongly to 2,261 million USD in 2021, but dropped again to 924 million USD in 2022. In 2023, adjusted net income rose to 1,520 million USD. The adjusted figures suggest fluctuating operational performance with recovery efforts succeeding variably year to year.

Adjusted Net Sales

Adjusted net sales closely follow the trend of reported net sales, decreasing from 31,447 million USD in 2018 to 22,345 million USD in 2020. From 2020 to 2023, adjusted sales progressively improved, reaching 26,985 million USD by 2023, aligning with the general recovery trend noted in the reported sales.

Adjusted Net Profit Margin

This margin exhibits considerable fluctuations, beginning at 3.95% in 2018 and rising moderately to 6.21% in 2019. It decreased sharply to 1.33% in 2020, then improved significantly to 9.47% in 2021. However, the margin contracted to 3.63% in 2022 before increasing again to 5.63% in 2023. The adjusted profit margin trend indicates substantial variability in profitability, with a peak in 2021 and a partial recovery in 2023.

Net Income Attributable to Johnson Controls

The net income experienced significant fluctuations over the analyzed period. After a strong performance in 2019 with a peak at 5,674 million US dollars, there was a sharp decline in 2020 to 631 million US dollars. Subsequently, the net income demonstrated a recovery trend, increasing to 1,637 million in 2021, slightly decreasing to 1,532 million in 2022, and rising again to 1,849 million in 2023.

Shareholders’ Equity Attributable to Johnson Controls

The shareholders’ equity showed a gradual decline throughout the period, starting at 21,164 million US dollars in 2018 and decreasing to 16,545 million US dollars by 2023. This reflects a downward trend indicating a reduction in the equity base over time with some minor stabilization in the last two recorded years.

Reported Return on Equity (ROE)

The reported ROE exhibited notable volatility. It reached its highest point in 2019 at 28.71%, then dropped sharply to 3.62% in 2020. After this decline, the ROE showed some recovery to 9.32% in 2021, remained relatively stable in 2022 at 9.42%, and increased again to 11.18% in 2023. The fluctuations suggest variability in profitability relative to equity.

Adjusted Net Income

The adjusted net income followed a pattern of oscillation. After a moderate increase from 1,242 million US dollars in 2018 to 1,494 million in 2019, a pronounced decrease occurred in 2020 down to 298 million. This was followed by a significant increase to 2,261 million in 2021. In the subsequent years, the adjusted net income fell to 924 million in 2022 but recovered to 1,520 million in 2023, mirroring the trends seen in reported net income but with greater variability.

Adjusted Total Equity

The adjusted total equity showed a consistent decline from 23,460 million US dollars in 2018 to 18,797 million in 2023. The decline occurred steadily with a slight reduction in the rate of decrease in the latter years, indicating a contraction in the equity base when adjusting for specific factors over time.

Adjusted Return on Equity (ROE)

The adjusted ROE exhibited considerable variation, increasing from 5.29% in 2018 to 6.6% in 2019 before plummeting to 1.5% in 2020. It then rebounded sharply to 11.14% in 2021, after which it declined again to 4.9% in 2022, followed by an improvement to 8.09% in 2023. These fluctuations highlight volatility in profitability when adjusting for specific items, with the highest adjusted ROE recorded in 2021.

Summary of Trends and Insights

Overall, profitability metrics such as net income and ROE demonstrated significant volatility during the observed period, heavily influenced by substantial declines in 2020 followed by varying degrees of recovery. The equity base, both reported and adjusted, showed a clear downward trend, suggesting ongoing reductions in the company's net asset position. The disparity between reported and adjusted figures implies the presence of one-time or non-recurring factors affecting earnings and equity. The recovery in ROE after 2020 indicates efforts toward improving return efficiency, although levels remain below the peaks observed in 2019, signaling cautious optimism in the company’s profitability trajectory moving forward.

Over the observed period, several financial metrics exhibit varying trends that reflect the company's performance fluctuations and asset management dynamics.

Net Income Attributable to Johnson Controls

The net income shows significant volatility. Starting at $2,162 million in 2018, it increased substantially to $5,674 million in 2019, followed by a steep decline to $631 million in 2020. This was followed by a recovery trend, reaching $1,849 million by 2023, indicating fluctuating profitability with notable rebound phases.

Total Assets

Total assets declined from $48,797 million in 2018 to $42,287 million in 2019 and remained relatively stable around the $40,800 million to $42,200 million range through 2023. This suggests an overall contraction or divestment phase followed by stabilization.

Reported Return on Assets (ROA)

Reported ROA mirrored the net income trend, peaking at 13.42% in 2019 before dropping to 1.55% in 2020. It then increased to 4.38% in 2023, indicating improved efficiency in asset utilization after the 2020 downturn, but the level remains below the 2019 peak.

Adjusted Net Income

Adjusted net income demonstrates marked fluctuations, starting at $1,242 million in 2018, rising modestly in 2019, then dropping sharply to $298 million in 2020. It rebounded sharply to $2,261 million in 2021 but decreased again in subsequent years, settling at $1,520 million in 2023. This pattern highlights adjustments impacting profitability measures and underlying volatile earnings quality.

Adjusted Total Assets

The adjusted total assets show a gradual decline from $48,479 million in 2018 to $40,833 million in 2023, indicating a consistent reduction in asset base when excluding certain adjustments, possibly reflecting strategic asset optimization or divestitures.

Adjusted Return on Assets (ROA)

Adjusted ROA was lowest in 2020 at 0.74%, increased sharply in 2021 to 5.48%, then dropped to 2.24% in 2022 before rising again to 3.72% in 2023. This signifies fluctuating operational efficiency adjusted for non-recurring items or other adjustments, with a notable recovery from the low in 2020 but some volatility persisting thereafter.

Overall, the data indicate periods of significant earnings volatility, asset base contraction, and variable asset efficiency. The sharp declines in 2020 across most measures suggest possible external challenges or transitional impacts, with partial recoveries observed in subsequent years. The distinction between reported and adjusted figures emphasizes the impact of specific adjustments on the perception of profitability and asset utilization.