Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Johnson Controls International plc, solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Johnson Controls International plc debt to equity ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Johnson Controls International plc debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Johnson Controls International plc debt to capital ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Johnson Controls International plc debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Johnson Controls International plc debt to assets ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Johnson Controls International plc debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Johnson Controls International plc financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Johnson Controls International plc interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Johnson Controls International plc fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Johnson Controls International plc, debt to equity 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) | |||||||
| Short-term debt | 385) | 669) | 8) | 31) | 10) | 1,315) | |
| Current portion of long-term debt | 645) | 865) | 226) | 262) | 501) | 26) | |
| Long-term debt, less current portion | 7,818) | 7,426) | 7,506) | 7,526) | 6,708) | 9,654) | |
| Total debt | 8,848) | 8,960) | 7,740) | 7,819) | 7,219) | 10,995) | |
| Shareholders’ equity attributable to Johnson Controls | 16,545) | 16,268) | 17,562) | 17,447) | 19,766) | 21,164) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.53 | 0.55 | 0.44 | 0.45 | 0.37 | 0.52 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 1.94 | 2.33 | 2.29 | 2.42 | 2.58 | — | |
| Eaton Corp. plc | 0.49 | 0.51 | 0.52 | 0.54 | 0.52 | — | |
| GE Aerospace | 0.77 | 0.89 | 0.87 | 2.11 | 3.21 | — | |
| Honeywell International Inc. | 1.29 | 1.17 | 1.06 | 1.28 | 0.87 | — | |
| Lockheed Martin Corp. | 2.55 | 1.68 | 1.07 | 2.02 | 4.05 | — | |
| RTX Corp. | 0.73 | 0.44 | 0.43 | 0.44 | 1.04 | — | |
| Debt to Equity, Sector | |||||||
| Capital Goods | 1.54 | 1.33 | 1.26 | 1.75 | 2.08 | — | |
| Debt to Equity, Industry | |||||||
| Industrials | 1.43 | 1.32 | 1.25 | 1.73 | 1.86 | — | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Johnson Controls
= 8,848 ÷ 16,545 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Johnson Controls International plc debt to equity ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Johnson Controls International plc, debt to equity (including operating lease liability) 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) | |||||||
| Short-term debt | 385) | 669) | 8) | 31) | 10) | 1,315) | |
| Current portion of long-term debt | 645) | 865) | 226) | 262) | 501) | 26) | |
| Long-term debt, less current portion | 7,818) | 7,426) | 7,506) | 7,526) | 6,708) | 9,654) | |
| Total debt | 8,848) | 8,960) | 7,740) | 7,819) | 7,219) | 10,995) | |
| Operating lease liabilities, current (included in Other current liabilities) | 318) | 280) | 319) | 332) | —) | —) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 1,086) | 987) | 1,055) | 875) | —) | —) | |
| Total debt (including operating lease liability) | 10,252) | 10,227) | 9,114) | 9,026) | 7,219) | 10,995) | |
| Shareholders’ equity attributable to Johnson Controls | 16,545) | 16,268) | 17,562) | 17,447) | 19,766) | 21,164) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.62 | 0.63 | 0.52 | 0.52 | 0.37 | 0.52 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 1.97 | 2.37 | 2.33 | 2.46 | 2.62 | — | |
| Eaton Corp. plc | 0.52 | 0.54 | 0.55 | 0.57 | 0.55 | — | |
| GE Aerospace | 0.84 | 0.96 | 0.94 | 2.20 | 3.32 | — | |
| Honeywell International Inc. | 1.36 | 1.23 | 1.11 | 1.32 | 0.90 | — | |
| Lockheed Martin Corp. | 2.73 | 1.81 | 1.19 | 2.21 | 4.40 | — | |
| RTX Corp. | 0.76 | 0.47 | 0.46 | 0.47 | 1.11 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Capital Goods | 1.61 | 1.39 | 1.32 | 1.81 | 2.17 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Industrials | 1.61 | 1.47 | 1.39 | 1.89 | 1.96 | — | |
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 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity attributable to Johnson Controls
= 10,252 ÷ 16,545 = 0.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Johnson Controls International plc debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Capital
Johnson Controls International plc, debt to capital 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) | |||||||
| Short-term debt | 385) | 669) | 8) | 31) | 10) | 1,315) | |
| Current portion of long-term debt | 645) | 865) | 226) | 262) | 501) | 26) | |
| Long-term debt, less current portion | 7,818) | 7,426) | 7,506) | 7,526) | 6,708) | 9,654) | |
| Total debt | 8,848) | 8,960) | 7,740) | 7,819) | 7,219) | 10,995) | |
| Shareholders’ equity attributable to Johnson Controls | 16,545) | 16,268) | 17,562) | 17,447) | 19,766) | 21,164) | |
| Total capital | 25,393) | 25,228) | 25,302) | 25,266) | 26,985) | 32,159) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.35 | 0.36 | 0.31 | 0.31 | 0.27 | 0.34 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Boeing Co. | 1.49 | 1.39 | 1.35 | 1.40 | 1.46 | — | |
| Caterpillar Inc. | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | — | |
| Eaton Corp. plc | 0.33 | 0.34 | 0.34 | 0.35 | 0.34 | — | |
| GE Aerospace | 0.43 | 0.47 | 0.47 | 0.68 | 0.76 | — | |
| Honeywell International Inc. | 0.56 | 0.54 | 0.51 | 0.56 | 0.46 | — | |
| Lockheed Martin Corp. | 0.72 | 0.63 | 0.52 | 0.67 | 0.80 | — | |
| RTX Corp. | 0.42 | 0.31 | 0.30 | 0.31 | 0.51 | — | |
| Debt to Capital, Sector | |||||||
| Capital Goods | 0.61 | 0.57 | 0.56 | 0.64 | 0.68 | — | |
| Debt to Capital, Industry | |||||||
| Industrials | 0.59 | 0.57 | 0.56 | 0.63 | 0.65 | — | |
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 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,848 ÷ 25,393 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Johnson Controls International plc debt to capital ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Johnson Controls International plc, debt to capital (including operating lease liability) 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) | |||||||
| Short-term debt | 385) | 669) | 8) | 31) | 10) | 1,315) | |
| Current portion of long-term debt | 645) | 865) | 226) | 262) | 501) | 26) | |
| Long-term debt, less current portion | 7,818) | 7,426) | 7,506) | 7,526) | 6,708) | 9,654) | |
| Total debt | 8,848) | 8,960) | 7,740) | 7,819) | 7,219) | 10,995) | |
| Operating lease liabilities, current (included in Other current liabilities) | 318) | 280) | 319) | 332) | —) | —) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 1,086) | 987) | 1,055) | 875) | —) | —) | |
| Total debt (including operating lease liability) | 10,252) | 10,227) | 9,114) | 9,026) | 7,219) | 10,995) | |
| Shareholders’ equity attributable to Johnson Controls | 16,545) | 16,268) | 17,562) | 17,447) | 19,766) | 21,164) | |
| Total capital (including operating lease liability) | 26,797) | 26,495) | 26,676) | 26,473) | 26,985) | 32,159) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.38 | 0.39 | 0.34 | 0.34 | 0.27 | 0.34 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Boeing Co. | 1.47 | 1.37 | 1.34 | 1.39 | 1.43 | — | |
| Caterpillar Inc. | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | — | |
| Eaton Corp. plc | 0.34 | 0.35 | 0.36 | 0.36 | 0.35 | — | |
| GE Aerospace | 0.46 | 0.49 | 0.49 | 0.69 | 0.77 | — | |
| Honeywell International Inc. | 0.58 | 0.55 | 0.53 | 0.57 | 0.47 | — | |
| Lockheed Martin Corp. | 0.73 | 0.64 | 0.54 | 0.69 | 0.81 | — | |
| RTX Corp. | 0.43 | 0.32 | 0.31 | 0.32 | 0.53 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Capital Goods | 0.62 | 0.58 | 0.57 | 0.64 | 0.68 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Industrials | 0.62 | 0.60 | 0.58 | 0.65 | 0.66 | — | |
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 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,252 ÷ 26,797 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Johnson Controls International plc debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Assets
Johnson Controls International plc, debt to assets 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) | |||||||
| Short-term debt | 385) | 669) | 8) | 31) | 10) | 1,315) | |
| Current portion of long-term debt | 645) | 865) | 226) | 262) | 501) | 26) | |
| Long-term debt, less current portion | 7,818) | 7,426) | 7,506) | 7,526) | 6,708) | 9,654) | |
| Total debt | 8,848) | 8,960) | 7,740) | 7,819) | 7,219) | 10,995) | |
| Total assets | 42,242) | 42,158) | 41,890) | 40,815) | 42,287) | 48,797) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.21 | 0.21 | 0.18 | 0.19 | 0.17 | 0.23 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Boeing Co. | 0.38 | 0.42 | 0.42 | 0.42 | 0.20 | — | |
| Caterpillar Inc. | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | — | |
| Eaton Corp. plc | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | — | |
| GE Aerospace | 0.13 | 0.17 | 0.18 | 0.30 | 0.34 | — | |
| Honeywell International Inc. | 0.33 | 0.31 | 0.30 | 0.35 | 0.27 | — | |
| Lockheed Martin Corp. | 0.33 | 0.29 | 0.23 | 0.24 | 0.27 | — | |
| RTX Corp. | 0.27 | 0.20 | 0.20 | 0.20 | 0.31 | — | |
| Debt to Assets, Sector | |||||||
| Capital Goods | 0.29 | 0.28 | 0.28 | 0.32 | 0.31 | — | |
| Debt to Assets, Industry | |||||||
| Industrials | 0.30 | 0.29 | 0.29 | 0.32 | 0.32 | — | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,848 ÷ 42,242 = 0.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Johnson Controls International plc debt to assets ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Johnson Controls International plc, debt to assets (including operating lease liability) 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) | |||||||
| Short-term debt | 385) | 669) | 8) | 31) | 10) | 1,315) | |
| Current portion of long-term debt | 645) | 865) | 226) | 262) | 501) | 26) | |
| Long-term debt, less current portion | 7,818) | 7,426) | 7,506) | 7,526) | 6,708) | 9,654) | |
| Total debt | 8,848) | 8,960) | 7,740) | 7,819) | 7,219) | 10,995) | |
| Operating lease liabilities, current (included in Other current liabilities) | 318) | 280) | 319) | 332) | —) | —) | |
| Operating lease liabilities, noncurrent (included in Other noncurrent liabilities) | 1,086) | 987) | 1,055) | 875) | —) | —) | |
| Total debt (including operating lease liability) | 10,252) | 10,227) | 9,114) | 9,026) | 7,219) | 10,995) | |
| Total assets | 42,242) | 42,158) | 41,890) | 40,815) | 42,287) | 48,797) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.24 | 0.22 | 0.22 | 0.17 | 0.23 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Boeing Co. | 0.40 | 0.43 | 0.43 | 0.43 | 0.21 | — | |
| Caterpillar Inc. | 0.44 | 0.46 | 0.46 | 0.48 | 0.49 | — | |
| Eaton Corp. plc | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 | — | |
| GE Aerospace | 0.14 | 0.19 | 0.19 | 0.31 | 0.35 | — | |
| Honeywell International Inc. | 0.35 | 0.33 | 0.32 | 0.36 | 0.28 | — | |
| Lockheed Martin Corp. | 0.36 | 0.32 | 0.26 | 0.26 | 0.29 | — | |
| RTX Corp. | 0.28 | 0.21 | 0.21 | 0.21 | 0.33 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Capital Goods | 0.30 | 0.30 | 0.29 | 0.33 | 0.33 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Industrials | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | — | |
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 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,252 ÷ 42,242 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Johnson Controls International plc debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Johnson Controls International plc, financial leverage 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) | |||||||
| 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 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 4.49 | 5.16 | 5.02 | 5.11 | 5.38 | — | |
| Eaton Corp. plc | 2.02 | 2.06 | 2.07 | 2.13 | 2.04 | — | |
| GE Aerospace | 5.96 | 5.16 | 4.93 | 7.13 | 9.40 | — | |
| Honeywell International Inc. | 3.88 | 3.73 | 3.47 | 3.68 | 3.17 | — | |
| Lockheed Martin Corp. | 7.67 | 5.71 | 4.64 | 8.43 | 15.20 | — | |
| RTX Corp. | 2.71 | 2.19 | 2.21 | 2.25 | 3.34 | — | |
| Financial Leverage, Sector | |||||||
| Capital Goods | 5.35 | 4.71 | 4.55 | 5.54 | 6.65 | — | |
| Financial Leverage, Industry | |||||||
| Industrials | 4.81 | 4.49 | 4.33 | 5.35 | 5.76 | — | |
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 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Johnson Controls
= 42,242 ÷ 16,545 = 2.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Johnson Controls International plc financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Interest Coverage
Johnson Controls International plc, interest coverage 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 income attributable to Johnson Controls | 1,849) | 1,532) | 1,637) | 631) | 5,674) | 2,162) | |
| Add: Net income attributable to noncontrolling interest | 184) | 191) | 233) | 164) | 213) | 221) | |
| Less: Income from discontinued operations, net of tax | —) | —) | 124) | —) | 4,598) | —) | |
| Add: Income tax expense | (323) | (13) | 868) | 108) | (233) | 518) | |
| Add: Interest expense, net of capitalized interest costs | 307) | 225) | 219) | 240) | 335) | 437) | |
| Earnings before interest and tax (EBIT) | 2,017) | 1,935) | 2,833) | 1,143) | 1,391) | 3,338) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 6.57 | 8.60 | 12.94 | 4.76 | 4.15 | 7.64 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Boeing Co. | 0.18 | -0.98 | -0.88 | -5.71 | -2.19 | — | |
| Caterpillar Inc. | 26.66 | 20.80 | 17.88 | 8.80 | 19.62 | — | |
| Eaton Corp. plc | 26.34 | 21.22 | 21.11 | 12.72 | 11.98 | — | |
| GE Aerospace | 10.12 | 1.88 | -0.96 | 2.59 | 1.27 | — | |
| Honeywell International Inc. | 10.36 | 16.41 | 22.09 | 17.75 | 22.17 | — | |
| Lockheed Martin Corp. | 9.84 | 11.72 | 14.27 | 14.93 | 12.09 | — | |
| RTX Corp. | 3.32 | 5.64 | 4.71 | -0.65 | 5.65 | — | |
| Interest Coverage, Sector | |||||||
| Capital Goods | 6.84 | 4.84 | 3.98 | 1.99 | 4.85 | — | |
| Interest Coverage, Industry | |||||||
| Industrials | 7.24 | 5.53 | 6.00 | 2.04 | 4.37 | — | |
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 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,017 ÷ 307 = 6.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Johnson Controls International plc interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Johnson Controls International plc, fixed charge coverage 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 income attributable to Johnson Controls | 1,849) | 1,532) | 1,637) | 631) | 5,674) | 2,162) | |
| Add: Net income attributable to noncontrolling interest | 184) | 191) | 233) | 164) | 213) | 221) | |
| Less: Income from discontinued operations, net of tax | —) | —) | 124) | —) | 4,598) | —) | |
| Add: Income tax expense | (323) | (13) | 868) | 108) | (233) | 518) | |
| Add: Interest expense, net of capitalized interest costs | 307) | 225) | 219) | 240) | 335) | 437) | |
| Earnings before interest and tax (EBIT) | 2,017) | 1,935) | 2,833) | 1,143) | 1,391) | 3,338) | |
| Add: Operating lease cost | 384) | 352) | 384) | 399) | 452) | 467) | |
| Earnings before fixed charges and tax | 2,401) | 2,287) | 3,217) | 1,542) | 1,843) | 3,805) | |
| Interest expense, net of capitalized interest costs | 307) | 225) | 219) | 240) | 335) | 437) | |
| Operating lease cost | 384) | 352) | 384) | 399) | 452) | 467) | |
| Fixed charges | 691) | 577) | 603) | 639) | 787) | 904) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 3.47 | 3.96 | 5.33 | 2.41 | 2.34 | 4.21 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Boeing Co. | 0.31 | -0.70 | -0.64 | -4.75 | -1.19 | — | |
| Caterpillar Inc. | 19.73 | 14.92 | 12.73 | 6.58 | 13.01 | — | |
| Eaton Corp. plc | 11.90 | 10.01 | 10.40 | 6.24 | 7.45 | — | |
| GE Aerospace | 5.25 | 1.35 | -0.22 | 1.93 | 1.09 | — | |
| Honeywell International Inc. | 8.13 | 11.00 | 13.67 | 11.49 | 14.06 | — | |
| Lockheed Martin Corp. | 7.81 | 8.44 | 9.95 | 11.12 | 9.12 | — | |
| RTX Corp. | 2.81 | 4.40 | 3.66 | -0.22 | 4.31 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Capital Goods | 5.14 | 3.61 | 3.06 | 1.66 | 3.63 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Industrials | 4.62 | 3.58 | 3.93 | 1.59 | 2.96 | — | |
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 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,401 ÷ 691 = 3.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Johnson Controls International plc fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |