Johnson Controls International plc (NYSE:JCI)

Return on Assets (ROA)

The Return on Assets demonstrated notable volatility over the observed period. It started at 4.43% in 2018, increased sharply to a peak of 13.42% in 2019, followed by a substantial decline to 1.55% in 2020. Post-2020, ROA showed a recovery trend, rising steadily to 3.91% in 2021, slightly declining to 3.63% in 2022, and then increasing again to 4.38% in 2023. This pattern suggests fluctuations in asset profitability with a recovery phase after the dip in 2020.

Financial Leverage

The financial leverage ratio exhibited moderate fluctuations throughout the timeline. It decreased from 2.31 in 2018 to 2.14 in 2019, then increased to 2.34 in 2020 and continued a gradual upward trajectory reaching 2.59 in 2022. In 2023, there was a slight decrease to 2.55. The overall trend indicates a cautious increase in leverage over the years, with a minor decline in the latest period, implying a relatively stable approach to using debt in the company’s capital structure.

Return on Equity (ROE)

Return on Equity showed significant volatility with patterns similar to ROA. It increased sharply from 10.22% in 2018 to 28.71% in 2019, followed by a steep decline to 3.62% in 2020. Thereafter, ROE gradually recovered, rising to 9.32% in 2021 and stabilizing around 9.42% in 2022 before increasing further to 11.18% in 2023. These movements reflect fluctuations in profitability and effectiveness of equity utilization, with a recovery trend post-2020.

Net Profit Margin

The net profit margin exhibits notable fluctuations over the analyzed periods. It peaked in 2019 at 23.67%, followed by a significant decline to 2.83% in 2020. Thereafter, it showed a recovery trend, gradually rising to 6.9% in 2023, slightly surpassing the initial 2018 level of 6.89%. This suggests profitability experienced volatility, with a sharp decrease in 2020 possibly linked to specific adverse conditions, followed by a steady improvement.

Asset Turnover

Asset turnover steadily decreased from 0.64 in 2018 to 0.55 in 2020, indicating a decline in efficiency in generating revenue from assets during that period. After 2020, incremental improvements were observed, rising to 0.63 by 2023, nearly reaching the starting level. This pattern suggests an initial reduction in asset utilization efficiency with a gradual recovery in recent years.

Financial Leverage

The financial leverage ratio shows minor variations across the years, beginning at 2.31 in 2018, dipping to 2.14 in 2019, and then generally increasing to a peak of 2.59 in 2022 before slightly declining to 2.55 in 2023. This indicates a moderate increase in the use of debt relative to equity over the period, with leverage ultimately higher than the initial value.

Return on Equity (ROE)

Return on equity experienced significant volatility, rising sharply from 10.22% in 2018 to 28.71% in 2019, followed by a steep decrease to 3.62% in 2020. Subsequently, ROE improved steadily, reaching 11.18% in 2023. The fluctuations align closely with the net profit margin trend, reflecting the impact of profitability changes on equity returns.

The financial data exhibits several noteworthy trends over the observed periods. The tax burden ratio displays volatility, declining from 0.81 in 2018 to 0.65 in 2021, followed by a marked increase to 1.21 in 2023. This fluctuation indicates varying tax impacts on profitability over time.

The interest burden ratio shows a general downward trend, decreasing from 0.86 in 2018 to 0.83 in 2023, with an intermittent rise in 2019 and 2021. This suggests a moderate improvement in the company’s ability to manage interest expenses relative to earnings before interest and taxes.

The EBIT margin experienced significant fluctuations, peaking sharply at 24.1% in 2019, then dropping to 4.39% in 2020, before partially recovering to around 6.84% by 2023. The pronounced drop in 2020 could be indicative of operational challenges or external shocks, with subsequent years reflecting stabilization at a lower margin compared to the 2019 high.

Asset turnover ratios remained relatively stable, ranging between 0.55 and 0.64 across the years, with a slight dip during 2019 and 2020 and gradual improvement thereafter. This stability suggests consistent efficiency in asset utilization to generate revenue.

Financial leverage shows an increasing trend from 2.14 in 2019 to a peak of 2.59 in 2022, followed by a slight decrease to 2.55 in 2023. This increase indicates a growing reliance on debt or other liabilities to finance assets, slightly moderated in the most recent period.

Return on equity (ROE) varied significantly, surging to 28.71% in 2019, then falling sharply to 3.62% in 2020, with gradual recovery to 11.18% in 2023. The pattern mirrors the fluctuations in EBIT margin and tax burden, highlighting sensitivity to operating performance and tax effects. Despite recovery, the recent ROE remains below the 2019 peak, reflecting a cautious improvement in profitability from shareholders’ perspective.

Tax Burden

Volatile, declining to 2021 then rising sharply to 2023 indicates changing tax impacts.

Interest Burden

Moderate improvement with minor fluctuations suggests better interest expense management.

EBIT Margin

Highly variable with a peak in 2019 and decline in 2020; partial recovery thereafter.

Asset Turnover

Relatively stable, indicating consistent efficiency in asset utilization.

Financial Leverage

General increase over the period points to growing use of debt financing.

Return on Equity (ROE)

Marked fluctuations with a peak in 2019, followed by decline and gradual recovery.

Net Profit Margin

The net profit margin exhibited considerable volatility over the analyzed period. It peaked notably in 2019 at 23.67%, indicating a highly profitable year. However, in 2020, the margin sharply declined to 2.83%, reflecting a significant reduction in profitability. The margin partially recovered in 2021 to 6.92%, followed by a slight decrease in 2022 to 6.06%. In 2023, it increased again to 6.9%, approaching levels similar to those in 2018. Overall, the trend suggests episodic fluctuations with a generally moderate profitability in the latter years.

Asset Turnover

Asset turnover demonstrated a gradual downward trend from 0.64 in 2018 to 0.55 in 2020, indicating a decreasing efficiency in using assets to generate sales during this period. From 2021 onwards, the ratio improved slightly, climbing from 0.57 to 0.63 in 2023, suggesting a modest recovery in operational efficiency. Despite this improvement, the turnover remains slightly below the 2018 level, reflecting a need for enhanced asset utilization.

Return on Assets (ROA)

Return on assets closely mirrored the patterns observed in net profit margin, showing significant variability. It rose to a peak of 13.42% in 2019, indicating strong profitability relative to the asset base. Subsequently, ROA declined sharply in 2020 to 1.55%, signaling a substantial reduction in asset profitability. The metric increased again in 2021 to 3.91%, then slightly declined in 2022 to 3.63%, and rose to 4.38% in 2023. This fluctuation reflects changing effectiveness in asset utilization to generate net income, with recent years showing moderate recovery but remaining below the 2019 peak.

The financial data reveals several notable trends and fluctuations over the six-year period under review. Various key performance metrics display periods of volatility as well as recovery, reflecting dynamic operational and financial conditions.

Tax Burden

The tax burden ratio exhibits significant variability, starting at 0.81 in 2018 and rising to a peak of 1.21 in 2023. Notable fluctuations include a drop to 0.65 in 2021 followed by a sharp increase in subsequent years. This variability suggests changes in the effective tax rate or tax adjustments impacting net profitability over time.

Interest Burden

Interest burden shows a generally declining trend from 0.86 in 2018 to 0.83 in 2023, with a brief increase in 2021 to 0.92. The ratios mostly stay below one, indicating that interest expenses have been reducing the operating income with some inconsistency. Overall, this suggests a moderate but manageable interest cost burden on earnings.

EBIT Margin

The EBIT margin presents high volatility, with a substantial peak at 24.1% in 2019 followed by a sharp drop to 4.39% in 2020. The margin partially recovers to around 6.8% by 2023, but remains well below the previous high. This variation likely reflects fluctuating operating efficiencies or margins influenced by external market or internal operational factors.

Asset Turnover

Asset turnover remains relatively stable over the years, ranging between 0.55 and 0.64. A slight decrease is observed from 2018 to 2020, but it gradually improves afterward, reaching 0.63 in 2023. This stability suggests consistent effectiveness in utilizing assets to generate sales, with minor enhancements toward the end of the period.

Return on Assets (ROA)

The ROA follows a volatile path similar to EBIT margin, peaking at 13.42% in 2019, dropping sharply to 1.55% in 2020, and gradually recovering to 4.38% by 2023. The pattern indicates fluctuations in overall profitability relative to asset base, aligning with operational earnings variability and expense impacts observed in the data.

In summary, the data reflects a period marked by considerable variability in profitability measures such as EBIT margin and ROA. The interest burden is moderately reducing, while tax burden shows an upward trend, potentially impacting net margins. Asset turnover remains stable, indicating consistent asset utilization despite profitability challenges. These patterns suggest the company has experienced operational and financial pressures but is showing signs of recovery and stabilization in recent years.

Tax Burden

The tax burden ratio demonstrates notable variability over the analyzed periods. Starting at 0.81 in 2018, it increased significantly to above 1.0 in both 2019 and 2022, peaking at 1.21 in 2023. A decline occurred in 2020 and 2021, reaching a low of 0.65 in 2021, indicating fluctuations in tax obligations or adjustments affecting the effective tax rate across years.

Interest Burden

The interest burden ratio displays a downward trend with intermittent variation. It rose from 0.86 in 2018 to 0.94 in 2019, followed by a sharp decrease to 0.75 in 2020. Although it partially recovered in 2021 to 0.92, it has generally decreased in more recent years to 0.83 in 2023, suggesting a gradual reduction in interest expenses relative to operating income or improved management of interest costs.

EBIT Margin

The EBIT margin exhibits substantial volatility and an overall downward trajectory after a significant peak. It soared sharply to 24.1% in 2019 from 9.93% in 2018 but then dropped markedly to 4.39% in 2020. Subsequent years show partial recovery, reaching approximately 11.51% in 2021 but declining again to just below 7% by 2023. This pattern indicates considerable fluctuations in operating profitability, possibly affected by external market conditions or internal operational factors.

Net Profit Margin

Similarly, the net profit margin shows considerable fluctuations corresponding somewhat with EBIT margin movements. It peaks in 2019 at 23.67% after an initial 6.89% in 2018, then declines sharply to 2.83% in 2020. The margin recovers moderately in 2021 to nearly 7% and stabilizes around that level through 2023. This indicates variability in overall profitability after expenses and taxes, with a peak year interspersed with lower margins in subsequent periods.