Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Profitability Ratios (Summary)
Johnson Controls International plc, profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
- Gross Profit Margin
- The gross profit margin demonstrates a generally upward trend from the end of 2017 through early 2021, increasing from approximately 29.87% to a peak near 34.05% by December 2021. Following this peak, a slight downward adjustment is observed, fluctuating around 33% through early 2024, ending near 32.84%. This indicates sustained improvement in core profitability with some stabilization in the most recent periods.
- Operating Profit Margin
- The operating profit margin exhibits greater volatility over the periods analyzed. Initially, it declines from around 9.89% in late 2017 to a low of approximately 2.04% in the third quarter of 2020. Subsequently, a recovery phase takes place with a notable rebound to over 10% in late 2021. However, this peak is followed by another moderation to around 5.3% by March 2024. This pattern suggests operational challenges and fluctuations in operating efficiency, with partial recovery efforts during 2020-2021 and some erosion thereafter.
- Net Profit Margin
- The net profit margin shows marked fluctuations, with a significant spike to levels above 20% during mid-to-late 2018 and early 2019, implying exceptional profitability or potentially one-time gains in those periods. After reaching a low of around 2.83% in the third quarter of 2020, the margin recovers modestly, fluctuating between approximately 4% and 7% afterwards. By early 2024, the margin settles near 6.32%, suggesting moderate profitability with some variability influenced by non-operating factors.
- Return on Equity (ROE)
- ROE significantly rises from about 10.22% in late 2017 to a sharp peak near 28.71% during 2018-2019, reflecting strong returns during that interval. It then falls steeply to under 5% in late 2020 before gradually improving again to around 12.61% by late 2023. The recent decrease to 10.83% by early 2024 points to some variability but overall a recovery phase following the trough observed in 2020.
- Return on Assets (ROA)
- The return on assets moves in a pattern similar to ROE but at lower levels, increasing from 4.43% to a peak near 13.54% during 2018-2019. This is followed by a decline to below 2% in late 2020, with a gradual recovery to above 4% in late 2023. The slight decline to 3.9% by early 2024 indicates some modest weakening after the recovery phase.
Return on Sales
Return on Investment
Gross Profit Margin
Johnson Controls International plc, gross profit margin calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Q2 2024 Calculation
Gross profit margin = 100
× (Gross profitQ2 2024
+ Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023)
÷ (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures exhibit a fluctuating pattern over the reported periods. Initial quarters show a gradual increase from $7,435 million to $8,370 million by September 30, 2018, followed by a notable decline to $5,464 million by December 31, 2018. This drop is quickly followed by a progressive recovery, with sales rising again to $6,392 million by September 30, 2021. A subsequent decline occurs through 2022, bottoming near $6,068 million in December 31, 2022, before recovering once more to $6,699 million by March 31, 2024. Overall, the net sales pattern reflects periods of volatility with intermittent recoveries, indicating exposure to external or internal factors affecting revenue generation.
- Gross Profit
- Gross profit follows a broadly similar trend to net sales but with greater volatility. Starting at $2,169 million on December 31, 2017, gross profit peaks at $2,519 million in September 2018 before experiencing a sharp decline to $1,725 million in December 2018. A recovery trajectory is observed, with gross profit rising steadily and reaching $2,291 million by September 2022. Nonetheless, this recovery trajectory is interspersed with declines, particularly from December 2021 onwards, with gross profit decreasing to $1,992 million by December 31, 2023. A mild rebound is seen in early 2024, reaching $2,181 million. The fluctuations suggest challenges in cost management or sales mix affecting gross profitability.
- Gross Profit Margin
- Gross profit margin data is incomplete for early periods but from December 31, 2018, onward, it shows a consistent upward trend. Margins increase from approximately 29.87% in late 2018 to a peak near 34.05% by late 2021. After stabilizing around this peak, margins gradually decline from 33.5% in late 2022 to 32.84% by March 31, 2024. The initial rise in margin indicates improved cost efficiency or higher value sales mix, but the subsequent tapering suggests emerging pressures on profitability—possibly cost inflation or competitive pricing challenges.
- Overall Insights
- The financial data points to a cyclical pattern with phases of revenue contraction and recovery. Gross profit margins rising during periods of recovery suggest successful margin management through operational enhancements or pricing strategies, despite fluctuating sales volumes. Recent trends indicating a downward margin shift alongside volatile gross profits warrant close monitoring for potential margin erosion risks. The company appears responsive to market or internal challenges but may face increasing pressure to sustain profitability levels moving forward.
Operating Profit Margin
Johnson Controls International plc, operating profit margin calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | ||||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Q2 2024 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2024
+ Operating income (loss)Q1 2024
+ Operating income (loss)Q4 2023
+ Operating income (loss)Q3 2023)
÷ (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income exhibits considerable volatility over the analyzed periods. Beginning at $594 million in December 2017, it peaked at $945 million in June 2018, followed by a sharp decline to $20 million by September 2019. A notable negative value of -$112 million occurred in June 2020, reflecting a loss during that quarter. Subsequently, there was a recovery with operating income reaching up to $780 million in September 2021, although fluctuations persisted thereafter. The most recent quarter, March 2024, saw a negative operating income of -$324 million, indicating significant operational challenges at that time.
- Net Sales
- Net sales demonstrate a general pattern of fluctuation around a nominal range. The highest sales figures were observed in mid-2018, with peaks at $8,370 million in September 2018. Following this, sales declined drastically in late 2018 to early 2019, reaching lows around the $5,300–$5,600 million range. Thereafter, there was a gradual recovery and growth trend with sales peaking again around $7,133 million in June 2023. The most recent values in the first quarter of 2024 indicate a decrease to approximately $6,699 million, yet still above some of the earlier troughs.
- Operating Profit Margin
- The operating profit margin data, available from December 2018 onwards, indicates variability with an overall modest upward trend until late 2021. Initially, margins were in the range of approximately 9.89% to 8.17%, then dropped to 2.04% in September 2020, coinciding with the negative operating income period. Post-2020, margins gradually improved, peaking near 10.81% in March 2022. More recently, margins have declined again, ranging from 7.42% in September 2023 down to 5.3% in the first quarter of 2024, mirroring the volatility in operating income.
- Summary Insights
- The data reveals a business experiencing periods of heightened volatility both in income and margin, with certain quarters marked by operating losses. Sales trends indicate resilience, with recovery following significant dips, though not without recent decreases. Profitability trends, as reflected by operating income and margin, show correlation, underscoring operational challenges, particularly around mid-2020 and early 2024. The pattern suggests sensitivity to external or internal factors leading to fluctuating financial performance over the reviewed timeframe.
Net Profit Margin
Johnson Controls International plc, net profit margin calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Johnson Controls | ||||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Q2 2024 Calculation
Net profit margin = 100
× (Net income (loss) attributable to Johnson ControlsQ2 2024
+ Net income (loss) attributable to Johnson ControlsQ1 2024
+ Net income (loss) attributable to Johnson ControlsQ4 2023
+ Net income (loss) attributable to Johnson ControlsQ3 2023)
÷ (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Johnson Controls
- The net income exhibits significant volatility across the examined periods. Initially, net income rose from 230 million US dollars at the end of 2017 to a peak of 4,192 million US dollars in mid-2019, indicating a period of strong profitability. This was followed by a sharp decline and fluctuations, including a notable loss of 182 million US dollars in mid-2020. After this decrease, net income showed some recovery but remained variable, with intermittent gains and losses through to early 2024. The most recent periods indicate a negative net income value, reflecting ongoing challenges during that timeframe.
- Net Sales
- Net sales demonstrated a generally stable but mildly fluctuating trend. Sales started at 7,435 million US dollars at the end of 2017, reached highs above 8,000 million US dollars in the first half of 2018, and then experienced some decline towards the end of 2018 and in 2019. Throughout 2020 to 2024, sales figures oscillated within a range of approximately 5,300 to 7,100 million US dollars, with no clear sustained upward or downward trend. This suggests a moderately stable revenue base with some sensitivity to market conditions.
- Net Profit Margin
- The net profit margin fluctuated notably but generally remained within a range of around 3.5% to almost 24%, with extremes marking significant profitability periods. Margins increased sharply between the end of 2018 and 2019, reaching around 22% to 24%, aligned with the peak in net income during the same period. Subsequently, margins declined sharply, dropping to below 3% during the mid-2020 period coinciding with the reported losses. Following this low, profit margins gradually improved, stabilizing between 4% and 8% from late 2020 through early 2024, indicating a recovery in profitability but at levels below the prior peak.
- Overall Observations
- There is a clear correlation between net income and net profit margin movements, both peaking in mid-2019 and falling sharply in mid-2020, likely reflecting external or operational challenges during that time. Net sales remained relatively stable, suggesting that fluctuations in profitability may be attributed more to cost management or extraordinary items rather than top-line volatility. The recovery in profit margins and net income after mid-2020 indicates improved operational performance or restructuring efforts, though recent negative net income values highlight continuing uncertainties.
Return on Equity (ROE)
Johnson Controls International plc, ROE calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Johnson Controls | ||||||||||||||||||||||||||||||||||
| Shareholders’ equity attributable to Johnson Controls | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Q2 2024 Calculation
ROE = 100
× (Net income (loss) attributable to Johnson ControlsQ2 2024
+ Net income (loss) attributable to Johnson ControlsQ1 2024
+ Net income (loss) attributable to Johnson ControlsQ4 2023
+ Net income (loss) attributable to Johnson ControlsQ3 2023)
÷ Shareholders’ equity attributable to Johnson Controls
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Johnson Controls
- The net income exhibits significant volatility throughout the observed periods. Initially, from late 2017 through 2018, net income fluctuated moderately, with a notable peak in June 2019 reaching 4192 million US dollars, which appears as an outlier relative to other values. Post this peak, net income sharply declined and remained comparatively lower, with intermittent negative values such as in June 2020 (-182 million US dollars) and in March 2024 (-277 million US dollars). Overall, the trend suggests periods of strong earnings followed by fluctuations and occasional losses, indicating potential episodic impacts on profitability.
- Shareholders’ Equity Attributable to Johnson Controls
- Shareholders' equity displays a downward trend over the timeframe. Starting at 20,535 million US dollars in December 2017, there is a gradual and continuous decline to 15,658 million US dollars by March 2024, with minor fluctuations along the way. This steady decrease in equity suggests either sustained dividend payouts exceeding earnings, share repurchases, or other equity-reducing activities. The modest fluctuations indicate periods of relative stabilization but overall reflect a contraction in the equity base.
- Return on Equity (ROE)
- The return on equity shows variation, with data available from June 2018 onward. It begins at 10.22% in June 2018, rising to a peak range around 28.7% from mid-2019 until early 2020, which aligns temporally with the extraordinary net income peak seen in June 2019. Subsequently, ROE declines sharply to single-digit percentages between September 2020 and mid-2022, suggesting reduced profitability relative to equity during that period. From the latter part of 2022 through the first quarter of 2024, ROE rebounds to double-digit levels again, indicating a recovery in profitability relative to shareholders' equity. This cyclical pattern of ROE closely follows the fluctuations observed in net income and the gradual decline in equity.
- Overall Financial Insights
- The analysis reveals a company experiencing episodic fluctuations in profitability, evidenced by variable net income and corresponding ROE figures. The peak net income and ROE in mid-2019 represent an exceptional event affecting financial performance. The gradual erosion of shareholders' equity over the analyzed periods, coupled with volatile earnings, may raise concerns regarding sustainable growth and capital retention. Recovery in ROE towards the most recent periods suggests some improvement in operational efficiency or profitability; however, the overall trend reflects a cautious outlook on financial stability and capital base strength.
Return on Assets (ROA)
Johnson Controls International plc, ROA calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Johnson Controls | ||||||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Q2 2024 Calculation
ROA = 100
× (Net income (loss) attributable to Johnson ControlsQ2 2024
+ Net income (loss) attributable to Johnson ControlsQ1 2024
+ Net income (loss) attributable to Johnson ControlsQ4 2023
+ Net income (loss) attributable to Johnson ControlsQ3 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Johnson Controls
- The net income shows considerable volatility across the quarterly periods analyzed. Starting from a positive value of 230 million USD at the end of 2017, it increased to a peak of 4,192 million USD in mid-2019, which represents an exceptional spike relative to other quarters. Following this peak, net income experienced fluctuations, with intermittent negative values such as a loss of 182 million USD in mid-2020 and again a loss of 277 million USD in the first quarter of 2024. Most recent quarters indicate a return to positive territory but without reaching the earlier large peak, reflecting an inconsistent profitability pattern over the period.
- Total Assets
- Total assets demonstrate a generally stable trend with minor fluctuations throughout the period. Beginning at 49,767 million USD at the end of 2017, assets declined somewhat into 2019, reaching a low near 42,287 million USD in the third quarter of 2019. Subsequently, assets recovered slightly and mostly remained in the range of approximately 42,000 million to 44,000 million USD towards the most current periods analyzed. There is no evidence of significant asset growth or disposal spikes; instead, a relatively steady asset base is maintained.
- Return on Assets (ROA)
- The Return on Assets ratio presents notable fluctuations corresponding with variations in net income and asset base changes. ROA values, missing for early 2018 quarters, show an increase from approximately 4.43% in mid-2018 to a peak of 13.54% in late 2018, aligning with the time frame of the peak net income figure. Thereafter, ROA decreases but remains generally positive, fluctuating mostly within the 1.5% to 4.5% range. This suggests moderate profitability in relation to asset utilization, with some quarters, particularly around 2020, showing reduced effectiveness possibly due to negative or lower net income results.
- Overall Insights
- The financial data indicates significant variability in profitability, highlighted by an unusually high net income quarter in mid-2019 followed by periods of both profit and loss. Asset levels remain comparatively stable, showing neither aggressive expansion nor contraction. The ROA reflects these dynamics, with peak asset efficiency occurring near periods of extraordinary net income and a general trend of modest returns otherwise. The presence of negative net income quarters coincides with dips in ROA, signaling periods of operational or external challenges affecting performance.