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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Johnson Controls International plc, decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2023 11.18% = 4.38% × 2.55
Sep 30, 2022 9.42% = 3.63% × 2.59
Sep 30, 2021 9.32% = 3.91% × 2.39
Sep 30, 2020 3.62% = 1.55% × 2.34
Sep 30, 2019 28.71% = 13.42% × 2.14
Sep 30, 2018 10.22% = 4.43% × 2.31

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).

The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Johnson Controls International plc, decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 11.18% = 6.90% × 0.63 × 2.55
Sep 30, 2022 9.42% = 6.06% × 0.60 × 2.59
Sep 30, 2021 9.32% = 6.92% × 0.57 × 2.39
Sep 30, 2020 3.62% = 2.83% × 0.55 × 2.34
Sep 30, 2019 28.71% = 23.67% × 0.57 × 2.14
Sep 30, 2018 10.22% = 6.89% × 0.64 × 2.31

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).

The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Johnson Controls International plc, decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 11.18% = 1.21 × 0.83 × 6.84% × 0.63 × 2.55
Sep 30, 2022 9.42% = 1.01 × 0.87 × 6.89% × 0.60 × 2.59
Sep 30, 2021 9.32% = 0.65 × 0.92 × 11.51% × 0.57 × 2.39
Sep 30, 2020 3.62% = 0.85 × 0.75 × 4.39% × 0.55 × 2.34
Sep 30, 2019 28.71% = 1.04 × 0.94 × 24.10% × 0.57 × 2.14
Sep 30, 2018 10.22% = 0.81 × 0.86 × 9.93% × 0.64 × 2.31

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).

The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in effect of taxes measured by tax burden ratio.

Two-Component Disaggregation of ROA

Johnson Controls International plc, decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2023 4.38% = 6.90% × 0.63
Sep 30, 2022 3.63% = 6.06% × 0.60
Sep 30, 2021 3.91% = 6.92% × 0.57
Sep 30, 2020 1.55% = 2.83% × 0.55
Sep 30, 2019 13.42% = 23.67% × 0.57
Sep 30, 2018 4.43% = 6.89% × 0.64

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).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Johnson Controls International plc, decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2023 4.38% = 1.21 × 0.83 × 6.84% × 0.63
Sep 30, 2022 3.63% = 1.01 × 0.87 × 6.89% × 0.60
Sep 30, 2021 3.91% = 0.65 × 0.92 × 11.51% × 0.57
Sep 30, 2020 1.55% = 0.85 × 0.75 × 4.39% × 0.55
Sep 30, 2019 13.42% = 1.04 × 0.94 × 24.10% × 0.57
Sep 30, 2018 4.43% = 0.81 × 0.86 × 9.93% × 0.64

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).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

Johnson Controls International plc, decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2023 6.90% = 1.21 × 0.83 × 6.84%
Sep 30, 2022 6.06% = 1.01 × 0.87 × 6.89%
Sep 30, 2021 6.92% = 0.65 × 0.92 × 11.51%
Sep 30, 2020 2.83% = 0.85 × 0.75 × 4.39%
Sep 30, 2019 23.67% = 1.04 × 0.94 × 24.10%
Sep 30, 2018 6.89% = 0.81 × 0.86 × 9.93%

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).

The primary reason for the increase in net profit margin ratio over 2023 year is the increase in effect of taxes measured by tax burden ratio.