Analysis of Reportable Segments
Johnson Controls International plc operates in 4 segments: Building Solutions North America; Building Solutions EMEA/LA; Building Solutions Asia Pacific; and Global Products.
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Segment Profit Margin
Johnson Controls International plc, profit margin by reportable segment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products |
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).
- Building Solutions North America
- The profit margin remained relatively stable from 2018 to 2019, showing a slight decline of 0.01 percentage points. It then increased steadily in 2020 and 2021, reaching a peak of 13.86%. However, there was a notable decrease in 2022 to 11.98%, followed by a recovery in 2023 to 13.49%. Overall, the segment experienced moderate fluctuations but maintained profitability above 11.9% throughout the period.
- Building Solutions EMEA/LA
- This segment exhibited a fluctuating downward trend over the six-year period. Starting at 9.31% in 2018, margins improved to 10.07% in 2019 but saw a decline thereafter. The margin decreased to 9.83% in 2020, rose slightly to 10.49% in 2021, and then dropped sharply in the final two years, reaching a low of 7.71% in 2023. This overall declining trend indicates increasing margin pressures in this region.
- Building Solutions Asia Pacific
- Margins in this segment showed minor variability but remained relatively stable. Beginning at 13.59% in 2018, there was a moderate decrease to 12.83% in 2019. The margin then saw a small increase to 13.28% in 2020 before a slight decline in 2021 to 13.15%. A gradual decline continued over the next two years, ending at 12.49% in 2023. The segment demonstrated consistent profitability with minor downward pressure on margins.
- Global Products
- This segment displayed a clear upward trajectory in profit margins throughout the period. Starting at a margin of 15.79% in 2018, the figure dropped to 13.67% in 2019 but rebounded strongly thereafter. There was a continuous increase from 14.41% in 2020 to 16.75% in 2021, followed by further growth to 17.01% in 2022 and a significant jump to 20.42% in 2023. This positive trend suggests strong operational efficiency or market positioning driving enhanced profitability.
Segment Profit Margin: Building Solutions North America
Johnson Controls International plc; Building Solutions North America; segment profit margin calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Segment EBITA ÷ Net sales
= 100 × ÷ =
- Net Sales
- Net sales exhibited a generally upward trend over the six-year period. Beginning at 8,679 million USD in 2018, sales increased to 9,031 million USD in 2019, followed by a slight decline to 8,605 million USD in 2020. Subsequently, sales rebounded to 8,685 million USD in 2021 before rising substantially in 2022 and 2023, reaching 9,367 million USD and 10,330 million USD respectively. This progression indicates resilience and growth in the segment's revenue generation, particularly notable in the final two years.
- Segment EBITA
- The segment EBITA values showed generally positive momentum throughout the period. Starting at 1,109 million USD in 2018, EBITA saw a moderate increase in 2019 to 1,153 million USD, then remained relatively stable in 2020 with 1,157 million USD. A further increase took place in 2021 with EBITA rising to 1,204 million USD. Although 2022 experienced a decline to 1,122 million USD, the figure rebounded strongly in 2023, reaching the highest value of 1,394 million USD in the series. This demonstrates effective cost management and profitability improvements, especially in the last reported year.
- Segment Profit Margin
- The segment profit margin fluctuated modestly across the timeframe. It began at 12.78% in 2018 and held steady in 2019 at 12.77%. The margin improved in 2020 and 2021, reaching 13.45% and 13.86% respectively, highlighting enhanced profitability relative to sales. However, a decrease occurred in 2022, dropping to 11.98%, which coincides with the dip in segment EBITA during the same year. In 2023, the margin rebounded to 13.49%, nearly matching the peak levels seen in prior years. Overall, these changes suggest variability in cost structures and pricing power but with a general tendency toward improving profitability.
- Summary
- Overall, the data reflects a segment with growing net sales and robust profitability. Despite some volatility, particularly in 2020 and 2022, the segment demonstrated capacity to recover and improve financial performance. The strong rebound in EBITA and profit margin in 2023 indicates enhanced operational efficiency and pricing strategies that have bolstered returns. The upward trends in both revenue and profitability metrics point to a strengthening business position within the given period.
Segment Profit Margin: Building Solutions EMEA/LA
Johnson Controls International plc; Building Solutions EMEA/LA; segment profit margin calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Segment EBITA ÷ Net sales
= 100 × ÷ =
- Net Sales
- Net sales demonstrated moderate fluctuations over the examined period. Initially, sales decreased from $3,696 million in 2018 to $3,440 million in 2020. Subsequently, sales recovered and exhibited an upward trend from 2020 to 2023, reaching $4,096 million, the highest figure in the timeframe. This pattern indicates a recovery and growth phase following a dip during the middle years.
- Segment EBITA
- Segment EBITA exhibited variability, beginning at $344 million in 2018 and increasing to a peak of $391 million in 2021. Thereafter, EBITA decreased notably to $316 million by 2023, which is the lowest level observed in the period analyzed. This suggests profit generation efficiency initially improved but faced challenges or rising costs in the later years.
- Segment Profit Margin
- The segment profit margin percentage showed a general variability over time. It increased gradually from 9.31% in 2018 to a peak of 10.49% in 2021, coinciding with the highest EBITA value. However, profit margin declined significantly thereafter, reaching 7.71% in 2023, the lowest in the period, indicating decreased profitability relative to sales in recent years.
- Overall Trends and Insights
- Despite the steady increase in net sales from 2020 onwards, segment EBITA and profit margin trends indicate rising pressures on profitability. The divergence between growing sales and declining profitability in the most recent periods suggests increased costs, pricing pressure, or other operational challenges. The peak in profitability around 2021 followed by a downturn through 2023 highlights the need for focused measures to improve operational efficiency and manage costs to sustain profitability in a growing revenue environment.
Segment Profit Margin: Building Solutions Asia Pacific
Johnson Controls International plc; Building Solutions Asia Pacific; segment profit margin calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Segment EBITA ÷ Net sales
= 100 × ÷ =
- Segment EBITA
- The EBITA values exhibit some fluctuations over the periods analyzed. Starting at 347 million USD in September 2018, there was a slight decline to 341 million USD in 2019, followed by a more noticeable decrease to 319 million USD in 2020. The figure then recovered to 349 million USD in 2021 before falling again to 332 million USD in 2022. The latest period shows a moderate increase to 343 million USD in 2023. Overall, the EBITA demonstrates a pattern of decline around 2020 with subsequent rebounds, indicating some volatility possibly influenced by external or internal factors affecting operational earnings.
- Net Sales
- Net sales displayed an upward trend from 2018 through 2019, moving from 2553 million USD to 2658 million USD. However, there was a decrease in 2020 to 2403 million USD, coinciding with the same period of reduced EBITA, which may suggest market challenges or reduced demand. Following 2020, net sales recovered to 2654 million USD in 2021 and continued to increase steadily through 2022 and 2023, reaching 2714 million USD and 2746 million USD respectively. These figures indicate a general recovery and growth momentum in sales in the latter periods after the 2020 downturn.
- Segment Profit Margin
- The segment profit margin has shown a declining trend over the majority of the periods analyzed. It started at 13.59% in 2018 and decreased to 12.83% in 2019. A slight improvement was observed in 2020 to 13.28%, followed by a minor decline to 13.15% in 2021. Subsequently, the margin declined more noticeably to 12.23% in 2022 with a modest rebound to 12.49% in 2023. Despite fluctuations, the overall trend reflects a reduction in profitability relative to sales. This could imply increasing costs, pricing pressures, or other operational inefficiencies impacting the margin's stability.
- General Insights
- The data reveals a significant impact around the 2020 period, marked by declines in both net sales and EBITA, which could be attributed to broader economic conditions or disruptions specific to this segment. Post-2020, there is a recovery in both sales and earnings, although profit margins remain under pressure and have not returned to their earlier peak levels. The persistent margin compression suggests ongoing challenges in managing costs or pricing strategies despite recovering sales volumes. Maintaining or improving profitability may require strategic focus on cost control or operational enhancements in this segment.
Segment Profit Margin: Global Products
Johnson Controls International plc; Global Products; segment profit margin calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Segment EBITA ÷ Net sales
= 100 × ÷ =
- Segment EBITA
- The Segment EBITA showed a fluctuating but overall increasing trend over the analyzed periods. The value decreased from 1338 million US dollars in 2018 to 1134 million in 2020, reflecting a downturn likely influenced by external or operational challenges during that timeframe. From 2020 onwards, EBITA rebounded significantly, rising to 1965 million US dollars by 2023. This recovery represents a substantial expansion in operating earnings, indicating improved segment profitability and operational efficiency.
- Net Sales
- Net sales experienced a moderate decline between 2019 and 2020, dropping from 8624 million to 7869 million US dollars. This dip appears temporary, as sales recovered in the subsequent years, reaching 9621 million US dollars by 2023. Overall, net sales displayed resilience with a generally positive upward trajectory after the 2020 trough, suggesting a restoration and growth in market demand or sales effectiveness within the segment.
- Segment Profit Margin
- The segment profit margin mirrored the trends observed in EBITA and net sales. After a decline from 15.79% in 2018 to a low of 13.67% in 2019, the margin improved steadily, surpassing pre-decline levels each year. By 2023, the segment profit margin had increased significantly to 20.42%, indicating enhanced profitability relative to sales and potentially reflecting improved cost control, pricing power, or operational leverage.
- Overall Trends and Insights
- The segment experienced a notable dip in performance around 2019–2020 but demonstrated a strong recovery in both sales and operating profitability afterward. The increasing EBITA and profit margins from 2021 to 2023 highlight a phase of strengthening financial health and efficiency. These improvements may suggest successful strategic initiatives, market growth, or operational enhancements contributing to sustained profitability gains.
Segment Return on Assets (Segment ROA)
Johnson Controls International plc, ROA by reportable segment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products |
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 analysis of the annual reportable segment Return on Assets (ROA) data over the six-year period reveals several noteworthy trends and variations across the different segments.
- Building Solutions North America
- This segment shows a generally positive trend in ROA, increasing from 7.21% in 2018 to 8.93% in 2023. The growth is consistent, with a slight dip in 2022 compared to 2021, but the overall upward trajectory indicates improving asset efficiency and profitability in this geographic region over the period.
- Building Solutions EMEA/LA
- ROA performance in the EMEA/LA segment demonstrates some volatility. Starting at 6.88% in 2018, it peaks at 7.69% in 2019 before declining to 6.07% in 2023. The data shows fluctuations without a clear upward or downward long-term trend, suggesting variable asset returns that might reflect regional challenges or market conditions affecting this segment.
- Building Solutions Asia Pacific
- The Asia Pacific segment consistently maintains the highest ROA values among the Building Solutions segments. After a slight drop from 12.83% in 2019 to 11.73% in 2020, the ROA rebounds and rises to a peak of 13.7% in 2022, followed by a minor decline to 12.97% in 2023. This pattern suggests relatively robust asset utilization and profitability in this region, despite minor fluctuations.
- Global Products
- The Global Products segment exhibits a notable improvement in ROA over the period. Beginning at 9.38% in 2018, the ROA dips to 8.17% in 2020 but then shows a strong upward trend, reaching 12.75% in 2023. This upward movement indicates significant enhancement in asset efficiency and profitability in the Global Products segment, especially in the more recent years.
Segment ROA: Building Solutions North America
Johnson Controls International plc; Building Solutions North America; segment ROA calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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
Segment ROA = 100 × Segment EBITA ÷ Assets
= 100 × ÷ =
- Segment EBITA
- The Segment EBITA demonstrates a generally positive trajectory over the observed period. Starting at US$1,109 million in 2018, EBITA exhibits a steady increase through 2021, reaching US$1,204 million. Despite a noticeable decline in 2022 to US$1,122 million, the segment rebounded strongly in 2023 to a peak value of US$1,394 million. This pattern suggests resilience and an ability to recover from short-term setbacks.
- Assets
- Total assets fluctuated modestly over the six years. Beginning at US$15,384 million in 2018, assets increased slightly until 2019, followed by a gradual decline through 2022, dropping to US$14,429 million. However, there was a recovery in 2023, with assets rising again to US$15,603 million. Despite these movements, the asset base remained relatively stable around the US$15 billion mark, indicating consistent investment levels.
- Segment ROA (Return on Assets)
- The Return on Assets (ROA) shows an overall upward trend. Starting from 7.21% in 2018, it gradually increased each year with minor fluctuations, reaching 7.86% in 2021. Although there was a slight dip to 7.78% in 2022, ROA improved markedly to 8.93% in 2023. This rising ROA indicates enhanced efficiency in utilizing assets to generate earnings over time.
- Summary of Trends
- The financial performance reveals sustained growth in profitability (EBITA) alongside a relatively steady asset base. The temporary dip in EBITA and asset value in 2022 corresponds with a marginal decline in ROA. The strong rebound in 2023 across all three key metrics—EBITA, assets, and ROA—suggests effective management actions and operational improvements. Overall, the segment has demonstrated improving profitability and efficiency, supported by a stable asset structure.
Segment ROA: Building Solutions EMEA/LA
Johnson Controls International plc; Building Solutions EMEA/LA; segment ROA calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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
Segment ROA = 100 × Segment EBITA ÷ Assets
= 100 × ÷ =
The financial data for the Building Solutions EMEA/LA segment reveals several noteworthy trends over the six-year period analyzed.
- Segment EBITA
- The Segment Earnings Before Interest, Taxes, and Amortization (EBITA) experienced fluctuations throughout the period. Starting at $344 million in 2018, it increased to a peak of $391 million in 2021, indicating improved operating profitability up to that point. However, the EBITA declined in the subsequent years, dropping to $358 million in 2022 and further down to $316 million in 2023, suggesting some challenges in maintaining the previous growth momentum or increased costs impacting earnings.
- Assets
- Total assets showed variability, beginning at $4,997 million in 2018 and dipping slightly to $4,786 million in 2019. Assets then recovered to $4,989 million in 2020 and increased to $5,241 million in 2021, the highest point within the period. The following year, assets decreased to $4,766 million in 2022 but rebounded to $5,202 million in 2023. This trend suggests active asset management with fluctuations potentially linked to strategic investments, disposals, or revaluations affecting the asset base year-over-year.
- Segment ROA
- Return on Assets (ROA) demonstrated a general pattern of moderate variability. It started at 6.88% in 2018, improved to a high of 7.69% in 2019, then declined slightly to 6.77% in 2020. The ROA recovered to about 7.46% in 2021 and remained stable near 7.5% in 2022 before falling to 6.07% in 2023. This decline in the latest year highlights a reduced efficiency in generating profit from assets, correlated with the noted decrease in EBITA despite stable asset levels.
Overall, the segment showed growth and operational improvement up to around 2021, followed by a downturn in earnings and profitability metrics, alongside some asset base fluctuations. The reduced ROA in 2023 alongside declining EBITA suggests increased pressure on profitability relative to the asset investment in recent periods.
Segment ROA: Building Solutions Asia Pacific
Johnson Controls International plc; Building Solutions Asia Pacific; segment ROA calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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
Segment ROA = 100 × Segment EBITA ÷ Assets
= 100 × ÷ =
The analysis of the annual financial data for the Building Solutions Asia Pacific segment reveals several key trends and insights over the six-year period from September 2018 to September 2023.
- Segment EBITA
- The EBITA figures exhibit a relatively stable pattern with minor fluctuations. Starting at $347 million in 2018, EBITA saw a slight decline in 2019 and 2020, reaching a low of $319 million in 2020. However, it recovered to $349 million in 2021, followed by a slight decrease to $332 million in 2022, and a moderate increase again to $343 million in 2023. Overall, EBITA remains within a narrow range, suggesting consistent profitability with some resilience after the dip in 2020.
- Assets
- Asset values show some variability over the period. Beginning at $2,743 million in 2018, assets decreased to $2,657 million in 2019 before increasing slightly to $2,720 million in 2020 and $2,783 million in 2021. A more pronounced decline is observed in 2022 to $2,424 million, followed by a notable rebound to $2,645 million in 2023. This pattern may indicate adjustments in asset management or investments, especially the reduction in 2022 and partial recovery the following year.
- Segment ROA (Return on Assets)
- The return on assets shows a generally positive trend with some variability. It rose modestly from 12.65% in 2018 to 12.83% in 2019, then declined to 11.73% in 2020, possibly reflecting the lower EBITA relative to assets in that year. ROA improved to 12.54% in 2021 and increased further to a peak of 13.7% in 2022, despite the reduction in assets that year, indicating enhanced operational efficiency or profitability relative to asset base. In 2023, ROA decreased slightly to 12.97%, remaining comparatively strong.
In summary, the segment demonstrates stable earnings before interest, taxes, and amortization with resilience following a downturn in 2020. Asset levels fluctuate, with a significant dip and recovery in the last two years examined. Return on assets generally improves over the period, reaching a high point in 2022, which suggests effective utilization of assets and improved profitability despite changing asset volumes. These trends reflect adaptive operational performance and asset management in response to varying market or business conditions.
Segment ROA: Global Products
Johnson Controls International plc; Global Products; segment ROA calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Segment EBITA | ||||||
| Assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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
Segment ROA = 100 × Segment EBITA ÷ Assets
= 100 × ÷ =
The analysis of the financial performance and position of the Global Products reportable segment over the specified periods reveals several significant trends.
- Segment EBITA
- The Segment EBITA experienced a decline from 1338 million US dollars in 2018 to a low of 1134 million in 2020. Following this period, there was a sustained recovery and growth, reaching 1965 million US dollars by 2023. This increase indicates improved profitability, especially notable from 2021 onward, with consecutive years of substantial EBITA growth.
- Assets
- Assets remained relatively stable over the years, fluctuating slightly around the range of approximately 13,882 million to 15,406 million US dollars. Although there was a modest decrease between 2018 and 2020, assets showed a gradual increasing trend from 2020 to 2023. This stabilization and slight growth suggest consistent investment in the segment's asset base.
- Segment ROA (Return on Assets)
- The Segment ROA displayed a pattern consistent with EBITA performance. It declined from 9.38% in 2018 to a low of 8.17% in 2020. Starting in 2021, ROA increased steadily, surpassing the initial levels and reaching 12.75% by 2023. This upward trend implies enhanced efficiency in asset utilization to generate earnings within the segment.
Overall, the Global Products segment demonstrated a recovery and strong upward momentum in profitability and efficiency after 2020, coupled with stable asset levels. The improvement in both EBITA and ROA metrics post-2020 highlights effective operational management and possibly favorable market conditions contributing to better financial outcomes.
Segment Asset Turnover
Johnson Controls International plc, asset turnover by reportable segment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products |
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 annual reportable segment asset turnover ratios exhibit distinct trends across the various segments over the six-year period from 2018 to 2023.
- Building Solutions North America
- The asset turnover ratio for this segment shows a relatively stable performance from 2018 to 2021, fluctuating slightly between 0.56 and 0.58. Starting in 2022, there is a noticeable increase, rising to 0.65 and further to 0.66 in 2023. This upward trend suggests improved efficiency in utilizing assets to generate revenue in recent years within this segment.
- Building Solutions EMEA/LA
- This segment experienced moderate fluctuations. The ratio increased from 0.74 in 2018 to 0.76 in 2019, then declined to 0.69 in 2020. From 2020 to 2022, there was a recovery and an increase to a peak of 0.81 in 2022, before a slight decrease to 0.79 in 2023. Overall, the segment shows resilience with some volatility but maintains relatively strong asset turnover efficiency.
- Building Solutions Asia Pacific
- The asset turnover ratio in this segment demonstrates higher variability. It increased from 0.93 in 2018 to 1.00 in 2019, followed by a decline to 0.88 in 2020. Subsequently, the ratio rose sharply, reaching 0.95 in 2021 and peaking at 1.12 in 2022. In 2023, it slightly declined to 1.04 but remained above previous years' levels. This indicates enhanced asset utilization over the period, particularly notable in the years following 2020.
- Global Products
- The ratio in this segment remained relatively consistent, ranging narrowly between 0.56 and 0.62. There was a slight increase from 0.59 in 2018 to 0.62 in 2019, followed by a dip to 0.57 in 2020 and 0.56 in 2021. The ratio then recovered to 0.62 in 2022 and stabilized at that level in 2023, suggesting steady asset turnover performance without significant volatility.
In summary, the data indicates improving asset turnover ratios particularly in the Building Solutions North America and Building Solutions Asia Pacific segments in recent years. The Building Solutions EMEA/LA segment experienced some cyclical variability but maintained overall strength, while the Global Products segment remained stable throughout the reporting period. The observed trends suggest differing regional performance dynamics and highlight areas of increased operational efficiency.
Segment Asset Turnover: Building Solutions North America
Johnson Controls International plc; Building Solutions North America; segment asset turnover calculation
| 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 sales | ||||||
| Assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
- Net Sales
- Net sales exhibited a generally positive trend over the reported period. Starting at 8,679 million USD in 2018, there was a modest increase in 2019 to 9,031 million USD, followed by a slight decline in 2020 to 8,605 million USD. Sales rebounded in 2021 to 8,685 million USD and showed a more notable increase in the subsequent years, reaching 9,367 million USD in 2022 and peaking at 10,330 million USD by 2023. This indicates an overall growth trajectory with resilience despite the 2020 downturn.
- Assets
- Assets remained relatively stable during the period but showed some fluctuations. They started at 15,384 million USD in 2018, increased slightly in 2019 to 15,562 million USD, and then gradually declined to 15,215 million USD in 2020 and 15,317 million USD in 2021. A more pronounced decrease occurred in 2022, with assets falling to 14,429 million USD, followed by a recovery in 2023 to 15,603 million USD. The asset base appears largely consistent but with a dip that temporarily reduced asset levels before rebounding.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures net sales relative to assets, showed a generally positive improvement over the period. Starting at 0.56 in 2018, it increased to 0.58 in 2019, slightly declined to 0.57 in both 2020 and 2021, before experiencing a marked increase to 0.65 in 2022 and a slight further increase to 0.66 in 2023. This suggests improved efficiency in using assets to generate sales, particularly in the later years of the period.
- Overall Interpretation
- The data reflects a strengthening performance in terms of sales and operational efficiency. Despite volatility and a decline in 2020, likely linked to broader economic challenges, net sales recovered and expanded significantly by 2023. Asset levels remained fairly steady with some variability but showed a recovering trend after a dip in 2022. The increasing asset turnover ratio indicates that the segment has been able to use its asset base more effectively over time to drive additional sales revenue, pointing to improvements in asset management and operational effectiveness.
Segment Asset Turnover: Building Solutions EMEA/LA
Johnson Controls International plc; Building Solutions EMEA/LA; segment asset turnover calculation
| 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 sales | ||||||
| Assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
- Net Sales
- The net sales for the Building Solutions EMEA/LA segment exhibited a fluctuating trend over the evaluated period. Starting at 3,696 million USD in 2018, there was a slight decrease in 2019 to 3,655 million USD and a more pronounced decline in 2020 to 3,440 million USD. Subsequently, net sales recovered and increased steadily in 2021, 2022, and 2023, reaching 4,096 million USD by the end of the period. This demonstrates a rebound in sales activity after a dip in 2019 and 2020.
- Assets
- Segment assets showed variability during the assessment period without a clear directional trend. Assets began at 4,997 million USD in 2018, decreased to 4,786 million USD in 2019, then rose again to 4,989 million USD in 2020 and further to 5,241 million USD in 2021. In 2022, assets declined to 4,766 million USD, followed by another increase to 5,202 million USD in 2023. This pattern of fluctuation suggests alternating periods of investment and divestment or changes in asset valuation within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio initially increased slightly from 0.74 in 2018 to 0.76 in 2019 but then declined to 0.69 in 2020. From 2020 onwards, there was some recovery: the ratio rose to 0.71 in 2021 and peaked at 0.81 in 2022 before slightly falling back to 0.79 in 2023. Overall, the ratio indicates that the segment has improved its efficiency in utilizing assets to generate sales since the 2020 low, reaching its highest efficiency in 2022 during this time frame.
Segment Asset Turnover: Building Solutions Asia Pacific
Johnson Controls International plc; Building Solutions Asia Pacific; segment asset turnover calculation
| 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 sales | ||||||
| Assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
- Net Sales
- The net sales for the segment exhibited moderate fluctuations over the examined period. Starting at 2,553 million USD in September 2018, sales increased to 2,658 million USD in 2019, before dipping to 2,403 million USD in 2020. Subsequently, net sales rebounded, reaching 2,654 million USD in 2021 and further growing to 2,746 million USD by September 2023. Overall, the trend shows recovery and gradual growth after the decline in 2020.
- Assets
- Segment assets displayed variable trends with a general downward movement after 2021. From 2,743 million USD in 2018, assets slightly decreased to 2,657 million USD in 2019, then rose modestly to a peak of 2,783 million USD in 2021. Thereafter, assets declined noticeably to 2,424 million USD in 2022, followed by a partial recovery to 2,645 million USD in 2023. This indicates some level of asset reallocation or disposal during the latter part of the period.
- Segment Asset Turnover
- The segment asset turnover ratio demonstrated variability but a general improvement trend toward the end of the period. The ratio started at 0.93 in 2018, increased to 1.00 in 2019, then dropped to 0.88 in 2020. It recovered to 0.95 in 2021 and peaked at 1.12 in 2022, indicating enhanced efficiency in using assets to generate sales. In 2023, the ratio slightly decreased to 1.04 but remained above the levels observed before 2021, suggesting sustained asset productivity despite fluctuations in asset base and sales.
Segment Asset Turnover: Global Products
Johnson Controls International plc; Global Products; segment asset turnover calculation
| 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 sales | ||||||
| Assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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
Segment asset turnover = Net sales ÷ Assets
= ÷ =
The reportable segment exhibits a general upward trend in net sales over the observed periods, with an initial increase from 8,472 million USD in 2018 to 8,624 million USD in 2019, followed by a decline to 7,869 million USD in 2020. Subsequently, net sales recover and continue to rise, reaching 9,373 million USD in 2022 and further increasing to 9,621 million USD in 2023. This pattern suggests a resilience and recovery in sales after a noted downturn in 2020.
In terms of assets, the values reflect relative stability with minor fluctuations. The asset base starts at 14,261 million USD in 2018, slightly decreases through 2019 and 2020 to a low of 13,882 million USD, then increases substantially to 15,328 million USD in 2021. The asset base remains relatively consistent thereafter, ending at 15,406 million USD in 2023. This indicates some expansion or investment activity around 2021, with maintenance of asset levels thereafter.
The segment asset turnover ratio, which measures efficiency in generating sales from assets, shows some variability but remains within a narrow band. Initially it increases from 0.59 in 2018 to 0.62 in 2019, then declines to 0.57 in 2020, aligning with the dip in net sales for that year. In 2021 it further declines slightly to 0.56, before rebounding to 0.62 in 2022 and maintaining that level in 2023. Overall, this indicates that the segment improved asset utilization efficiency in 2019, experienced a decrease during the 2020-2021 period, likely due to market conditions affecting sales, and restored efficiency to earlier levels subsequently.
- Net sales trend
- Generally upward with a dip in 2020 and a robust recovery through 2023.
- Assets trend
- Moderate fluctuations with a peak in 2021 and stable levels thereafter.
- Segment asset turnover
- Fluctuates in correlation with sales performance, showing a dip during 2020-2021 followed by a recovery.
In summary, the segment demonstrates resilience by recovering net sales after a decline in 2020, while asset levels increased modestly and stabilized. Efficiency, as measured by asset turnover, aligns closely with sales performance, indicating effective asset management post-recovery. These patterns suggest adaptability and improved operational effectiveness in recent years.
Segment Capital Expenditures to Depreciation
Johnson Controls International plc, capital expenditures to depreciation by reportable segment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products |
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 analysis of the annual reportable segment capital expenditures to depreciation ratios reveals varied trends across the different segments over the six-year period from September 30, 2018, to September 30, 2023.
- Building Solutions North America
- The ratio fluctuates throughout the period, starting at 0.48 in 2018 and exhibiting a general decline until it reaches its lowest point of 0.36 in 2021. There is a significant increase to 0.66 in 2022, followed by a decrease again to 0.46 in 2023. Overall, the trend indicates moderate volatility, with the capital expenditures relative to depreciation generally remaining below 0.7.
- Building Solutions EMEA/LA
- This segment shows a consistent upward trend from 0.66 in 2018 to 1.24 in 2021, maintaining this peak level into 2022 with no change, and then slightly decreasing to 1.18 in 2023. The increase from 2018 to 2021 suggests rising capital expenditures relative to depreciation, indicating either increased investment or slower depreciation. The plateau and minor decline in the last year suggest a stabilization of this dynamic.
- Building Solutions Asia Pacific
- The ratio in this segment follows a mostly upward trajectory with some variability. It starts at 0.93 in 2018, peaks at 1.5 in 2020, decreases to 1.05 in 2022, and then rises again to 1.43 in 2023. This pattern indicates periods of aggressive capital investment followed by moderation, with the ratio consistently remaining above 0.9, reflecting a high level of capital expenditure relative to depreciation across the years.
- Global Products
- The data for this segment depicts a downward trend overall. The ratio begins at 0.79 in 2018, slightly declines to 0.78 in 2019, sharply falls to 0.46 in 2020, modestly recovers to 0.61 in 2021, and then decreases steadily to 0.51 in 2023. This pattern suggests a reduction in capital expenditures relative to depreciation over time, with a notable drop in 2020 that partially recovers but remains below earlier levels.
In summary, the Building Solutions segments in EMEA/LA and Asia Pacific mostly show increasing or high ratios, reflecting heavier investment relative to depreciation, while North America exhibits more fluctuation with lower ratios. Meanwhile, the Global Products segment demonstrates a declining ratio trend, indicating restrained capital spending relative to depreciation. These patterns could imply differing investment strategies or asset life cycles across regions and segments.
Segment Capital Expenditures to Depreciation: Building Solutions North America
Johnson Controls International plc; Building Solutions North America; segment capital expenditures to depreciation calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | ||||||
| Depreciation/amortization | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= ÷ =
- Capital Expenditures
- Capital expenditures demonstrated a fluctuating trend over the six-year period. Starting at $114 million in 2018, expenditures peaked at $141 million in 2022, showing an increase particularly notable in the two most recent years compared to the prior four. However, there was a decline in 2023 to $104 million, the lowest level since 2020, after the peak in 2022.
- Depreciation and Amortization
- The depreciation and amortization expense remained relatively stable throughout the period, fluctuating within a narrow range. The values hovered around the low $230 million level from 2018 through 2020, increased slightly to $245 million in 2021, and then declined to $213 million in 2022 before increasing again to $225 million in 2023. This pattern suggests a fairly consistent asset base with modest annual adjustments.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation experienced noticeable variability. It started at 0.48 in 2018, rising slightly to 0.51 in 2019, before declining steadily to a low of 0.36 in 2021. The ratio then sharply increased to its highest point of 0.66 in 2022, reflecting a substantial increase in capital investment relative to depreciation expense. In 2023, the ratio dropped again to 0.46, which is below the earlier peak but still above the low point in 2021.
- Overall Insights
- The data indicates a period of conservative capital spending between 2019 and 2021, as reflected by declining capital expenditures and a lower capital expenditure to depreciation ratio. This period may represent cost control or reduced investment activities. The spike in capital expenditures and the corresponding rise in the capital expenditure to depreciation ratio in 2022 suggest a strategic shift towards increased investment in assets or expansion activities, followed by a scaling back in 2023. Meanwhile, depreciation remains relatively steady, indicating no major fluctuations in asset depreciation policies or asset base changes outside of acquisition levels. The combination of these trends points to a cautious but opportunistic approach to asset investment management within this segment over the observed timeframe.
Segment Capital Expenditures to Depreciation: Building Solutions EMEA/LA
Johnson Controls International plc; Building Solutions EMEA/LA; segment capital expenditures to depreciation calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | ||||||
| Depreciation/amortization | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= ÷ =
- Capital Expenditures
- Capital expenditures displayed a general upward trend from 2018 through 2021, increasing from 73 million USD to a peak of 128 million USD. Following that peak, capital expenditures slightly declined and stabilize around 119 million USD for the years 2022 and 2023.
- Depreciation and Amortization
- Depreciation and amortization expenses showed a somewhat declining trend overall. Starting at 110 million USD in 2018, the figure increased marginally to 112 million USD in 2019, then declined steadily to 96 million USD in 2022 before a slight increase to 101 million USD in 2023.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio, which compares capital expenditures to depreciation expense, demonstrated a clear increasing pattern from 0.66 in 2018 to a high of 1.24 in 2021 and 2022. The ratio then slightly decreased to 1.18 in 2023, remaining well above the 2018 level.
- Summary of Trends
- The upward trend in capital expenditures over the first four years suggests increased investment or asset acquisition activity within the segment, peaking in 2021. The stabilization in 2022 and 2023 may indicate a plateau in investment levels. The gradual decline in depreciation and amortization implies either aging assets with lower depreciation charges or changes in asset composition affecting amortization. The increasing ratio of capital expenditures to depreciation from 2018 to 2022 indicates that investment growth outpaced asset wear or consumption, reflecting potential expansion or refreshment of asset base. The slight decrease in this ratio in 2023 suggests a modest easing in investment intensity relative to asset depreciation but still signifies significant reinvestment in the segment’s asset structure.
Segment Capital Expenditures to Depreciation: Building Solutions Asia Pacific
Johnson Controls International plc; Building Solutions Asia Pacific; segment capital expenditures to depreciation calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | ||||||
| Depreciation/amortization | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= ÷ =
The analysis of the Building Solutions Asia Pacific segment reveals several notable trends over the six-year period ending in September 2023. Capital expenditures fluctuated, initially maintaining a steady level at US$26 million in 2018 and 2019 before increasing to US$36 million in 2020. This peak was followed by a decline to US$22 million in 2022, then a rebound to US$33 million in 2023. This pattern indicates a varying investment approach, reflecting potential shifts in strategic priorities or operational needs within the segment.
Depreciation and amortization expenses demonstrated a general downward trend, starting at US$28 million in 2018 and decreasing to a low of US$21 million in 2022. There was a slight increase to US$23 million in 2023, suggesting a moderate adjustment in asset utilization or aging of capital assets during this period.
The ratio of segment capital expenditures to depreciation further elucidates the investment dynamics relative to asset base consumption. Initially below parity at 0.93 in 2018, the ratio increased to 1.50 in 2020, indicating capital spending significantly exceeded asset depreciation, possibly reflecting asset expansion or upgrades. The ratio subsequently declined to 1.05 in 2022 but rose again to 1.43 in 2023, underscoring episodic investment surges relative to asset wear and tear.
- Capital Expenditures
- Fluctuated between US$22 million and US$36 million, with peaks in 2020 and 2023 suggesting periods of increased asset investment.
- Depreciation/Amortization
- Displayed a decreasing trend overall from US$28 million in 2018 to US$21 million in 2022, indicating either decreased capital asset base or slower asset aging, with a minor uptick in 2023.
- Capital Expenditures to Depreciation Ratio
- Varied from 0.93 to 1.50 across the timeframe, showing intermittent periods where capital expenditures outpaced asset depreciation, pointing to potential growth or modernization efforts.
Overall, the data suggests a cyclic pattern of investment in the Building Solutions Asia Pacific segment, with capital expenditures periodically increasing above depreciation levels. This implies strategic asset development interspersed with phases of lower investment intensity. The segment appears to balance asset renewal with capital discipline, adapting its spending according to operational or market conditions over the six-year span.
Segment Capital Expenditures to Depreciation: Global Products
Johnson Controls International plc; Global Products; segment capital expenditures to depreciation calculation
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | ||||||
| Depreciation/amortization | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation/amortization
= ÷ =
- Capital Expenditures
- Capital expenditures demonstrated a fluctuating but generally declining trend over the examined period. Starting at 307 million US dollars in 2018, expenditures remained relatively stable in 2019 at 310 million, then dropped significantly in 2020 to 191 million. A recovery phase was observed in 2021 and 2022 with expenditures rising to 265 million and 257 million, respectively, before decreasing again to 233 million in 2023.
- Depreciation and Amortization
- Depreciation and amortization expenses showed a consistent upward trend from 2018 to 2022, increasing steadily from 390 million US dollars in 2018 to 461 million in 2022. In 2023, the expense slightly decreased to 454 million but remained higher than all prior years except 2022.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation revealed a downward trend over the six-year period. Beginning at 0.79 in 2018, the ratio remained relatively stable in 2019 at 0.78, before sharply declining in 2020 to 0.46. Subsequently, there was a moderate recovery in 2021 to 0.61, followed by a gradual decrease again to 0.56 in 2022 and further to 0.51 in 2023. This indicates that capital expenditures are consistently becoming lower relative to depreciation expenses over time.
- Overall Insights
- The data indicates a prudent approach to capital investment in the segment, with a reduction in capital expenditure intensity relative to asset depreciation. Depreciation has steadily increased, suggesting either growth in the asset base from previous investments or changes in accounting estimates. The declining capital expenditure to depreciation ratio points to a potential tightening of reinvestment or a shift in asset utilization strategy. The fluctuations in capital expenditures, particularly the sharp decline in 2020 likely related to external economic factors, followed by partial recovery, denote responsiveness to market or operational conditions.
Net sales
Johnson Controls International plc, net sales by reportable segment
US$ in millions
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products | ||||||
| Total |
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 data shows annual reportable segment net sales for multiple geographic and product segments over a six-year period.
- Building Solutions North America
- This segment exhibits overall growth throughout the period. Starting at 8,679 million US dollars in 2018, net sales slightly increased in 2019 then declined in 2020, likely reflecting market or economic challenges during that year. From 2021 onwards, the segment regained momentum with consistent increases, reaching a peak of 10,330 million US dollars in 2023. This represents a notable upward trajectory, suggesting strong recovery and expansion activities in the North American market.
- Building Solutions EMEA/LA
- Sales in this segment remained relatively stable from 2018 to 2019, followed by a decrease in 2020. However, the segment resumed growth in 2021 and continued expanding through 2023, with net sales increasing from 3,727 million to 4,096 million US dollars. The gradual recovery and positive trend since 2020 indicate an improving business environment or successful strategic initiatives in Europe, Middle East, Africa, and Latin America.
- Building Solutions Asia Pacific
- This segment shows a consistent pattern of minor fluctuations. After a slight increase from 2018 to 2019, there was a dip in 2020. Starting in 2021, sales grew moderately but stabilized, with net sales reaching 2,746 million US dollars in 2023. The limited growth suggests steady but cautious market conditions, with no significant expansion or contraction visible.
- Global Products
- Global Products followed a similar trend to other segments, with growth from 2018 to 2019, followed by a decline in 2020. Sales rebounded strongly in 2021 and continued to rise, albeit at a slower pace, culminating at 9,621 million US dollars in 2023. This trend reflects resilience and a recovery pattern, likely driven by product demand regeneration post-2020 disruptions.
- Total
- Total net sales across all segments increased modestly from 2018 to 2019, dipped considerably in 2020, and then showed a steady recovery through 2023. The total reached 26,793 million US dollars in 2023, representing an overall increase compared to 2018. The dip in 2020 is consistent with the wider economic disruptions of that period, while subsequent years show recovery and growth across the company's portfolio.
Segment EBITA
Johnson Controls International plc, segment ebita by reportable segment
US$ in millions
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products | ||||||
| Total |
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 EBITA data across reportable segments for the periods from September 30, 2018, to September 30, 2023, presents varying trends and fluctuations that indicate shifting performance dynamics within the business units.
- Building Solutions North America
- This segment shows a generally positive trajectory over the six-year period. Beginning at 1109 million USD in 2018, it slightly increased through 2019 and 2020, reaching 1204 million USD by 2021. There was a minor decline in 2022 to 1122 million USD, followed by a strong rebound to 1394 million USD in 2023, marking the highest value recorded in the dataset. This suggests renewed momentum and possibly increased demand or improved operational efficiency in the North American segment.
- Building Solutions EMEA/LA
- The EMEA/LA segment experienced more variability and a downward trend overall. Starting at 344 million USD in 2018, it increased to 368 million USD in 2019 but then declined to 338 million USD in 2020. A recovery occurred in 2021 to 391 million USD, the peak over this period. However, subsequent decreases in 2022 and 2023 to 358 million USD and then 316 million USD, respectively, indicate weakening EBITA performance. This variation could reflect regional market challenges or competitive pressures affecting profitability.
- Building Solutions Asia Pacific
- The Asia Pacific segment displayed relative stability with minor fluctuations. EBITA began at 347 million USD in 2018 and closely remained around this range with slight declines and increases, culminating in 343 million USD in 2023. This steadiness suggests consistent operational outcomes without significant growth or contraction over the reviewed years.
- Global Products
- This segment exhibited a notable upward trend. Starting at 1338 million USD in 2018, EBITA decreased to 1179 million USD in 2019 and further to 1134 million USD in 2020. However, it rebounded sharply in 2021 to 1441 million USD and continued to grow substantially to 1594 million USD in 2022 and 1965 million USD in 2023. The strong growth in this segment points toward successful product strategies and an increasingly profitable product line or portfolio expansion driving EBITA gains.
- Total EBITA
- The aggregate EBITA for all segments reflects these individual movements, beginning at 3138 million USD in 2018, showing a gradual decline through 2019 and 2020 to 2948 million USD. A significant recovery occurred in 2021 with EBITA rising to 3385 million USD, remaining relatively stable in 2022 at 3406 million USD, before experiencing a considerable increase to 4018 million USD in 2023. The total EBITA growth in recent years is primarily supported by the performance in North America and Global Products despite the challenges in EMEA/LA.
In summary, the data reveals strong growth trends in the North American and Global Products segments, while the EMEA/LA segment faced headwinds in the latter years. The Asia Pacific segment maintained a steady performance. Overall, the combined EBITA showed resilience and a pronounced upward trend by the end of the period, indicating improved profitability and operational effectiveness across key areas of the business.
Assets
Johnson Controls International plc, assets by reportable segment
US$ in millions
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products | ||||||
| Total |
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 analysis of the annual reportable segment assets data reveals variations across different business segments and time periods, reflecting shifts in asset allocation and potentially underlying business activities or market conditions.
- Building Solutions North America
- The asset values for this segment exhibit a general stability with minor fluctuations over the observed six-year period. Starting at 15,384 million US dollars in 2018, assets saw a slight increase in 2019, followed by a small decline through 2020 and 2022. Notably, there was a recovery in 2023, reaching the highest value recorded in the period at 15,603 million US dollars. This pattern suggests a resilient asset base with a temporary downturn during 2020 and 2022.
- Building Solutions EMEA/LA
- This segment shows more pronounced fluctuations. After a decrease from 4,997 million US dollars in 2018 to 4,786 million in 2019, assets increased in 2020 and 2021, peaking at 5,241 million US dollars. However, this was followed by another decline in 2022 to 4,766 million US dollars, before rising again in 2023 to 5,202 million US dollars. The cyclical nature of these changes indicates sensitivity to regional factors affecting asset levels.
- Building Solutions Asia Pacific
- Assets in this segment remained relatively stable from 2018 to 2021, fluctuating modestly around the 2,700 million US dollar mark. However, there was a noticeable drop in 2022 to 2,424 million US dollars, with a partial recovery in 2023 to 2,645 million US dollars. This suggests some regional challenges impacting assets but also a rebound towards the end of the period.
- Global Products
- The Global Products segment demonstrates a generally positive trend. Starting at 14,261 million US dollars in 2018, assets slightly decreased until 2020 but then increased substantially in 2021 to 15,328 million US dollars. The following years saw a marginal decline in 2022 and a slight rise again in 2023, ending near its peak at 15,406 million US dollars. This pattern reflects growth and strength in this segment's asset base over time.
- Total Assets
- Total reportable segment assets maintained a broadly stable trajectory with minor variations. Beginning at 37,385 million US dollars in 2018, total assets dipped slightly through 2019 and 2020, then increased notably in 2021 to 38,669 million US dollars. A decrease to 36,804 million US dollars in 2022 was followed by a recovery to the highest aggregate value of 38,856 million US dollars in 2023. This overall trend indicates resilience in the company's asset portfolio despite segment-level fluctuations.
Depreciation/amortization
Johnson Controls International plc, depreciation/amortization by reportable segment
US$ in millions
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products | ||||||
| Total |
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 depreciation and amortization expense across the reportable segments display varying trends over the six-year period ending September 30, 2023.
- Building Solutions North America
- This segment's depreciation and amortization have fluctuated moderately, starting at $236 million in 2018 and experiencing a slight decline to $233 million in 2019 and 2020. A notable increase occurred in 2021, reaching $245 million, followed by a decrease to $213 million in 2022, and then a moderate recovery to $225 million in 2023. Overall, the trend shows cyclical changes with a general range between $213 million and $245 million.
- Building Solutions EMEA/LA
- This segment exhibits a gradual downward trend in depreciation and amortization expenses. Beginning at $110 million in 2018, the figures increased slightly to $112 million in 2019 but then declined consistently to $102 million in 2020, $103 million in 2021, $96 million in 2022, and a small uptick to $101 million in 2023. The overall pattern suggests a slow reduction in asset depreciation or amortization levels in this region.
- Building Solutions Asia Pacific
- The Asia Pacific segment shows relatively stable and low depreciation and amortization values, starting at $28 million in 2018 and dipping to $23 million in 2019. The values remained steady around the mid-20s between 2020 and 2023, ranging from $21 million to $25 million. This indicates minor fluctuations but a generally consistent level of depreciation/amortization in this segment.
- Global Products
- This segment shows a clear upward trend in depreciation and amortization expenses over the period. Starting at $390 million in 2018, it increased steadily each year, peaking at $461 million in 2022 before a slight decrease to $454 million in 2023. The consistent growth suggests expanding asset bases or increased amortization charges in this segment.
- Total Consolidated
- The total depreciation and amortization expenses for all segments combined present a relatively stable pattern with slight fluctuations. Beginning at $764 million in 2018 and 2019, the total increased slightly to $773 million in 2020 and further to $805 million in 2021. A minor decrease to $791 million occurred in 2022, followed by a small increase to $803 million in 2023. This overall stability reflects balancing changes across segments, with growth in Global Products offsetting declines or fluctuations in other segments.
Capital expenditures
Johnson Controls International plc, capital expenditures by reportable segment
US$ in millions
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | |
|---|---|---|---|---|---|---|
| Building Solutions North America | ||||||
| Building Solutions EMEA/LA | ||||||
| Building Solutions Asia Pacific | ||||||
| Global Products | ||||||
| Total |
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).
- Building Solutions North America
- The capital expenditures in this segment exhibited fluctuating trends over the years. From 2018 to 2019, there was a slight increase from 114 million to 119 million US dollars. However, this was followed by a decline in 2020 and 2021, reaching a low of 87 million. A sharp rebound occurred in 2022, with expenditures rising to 141 million, before decreasing again to 104 million in 2023. Overall, the trend indicates volatility with a significant peak in 2022.
- Building Solutions EMEA/LA
- This segment displayed a generally upward trajectory from 2018 to 2021, increasing from 73 million to 128 million US dollars. The capital expenditures peaked in 2021 and then stabilized, remaining steady at 119 million in both 2022 and 2023. The data suggests sustained investment growth until 2021, followed by a plateauing phase.
- Building Solutions Asia Pacific
- The capital expenditures in the Asia Pacific segment showed moderate variations. Initial expenditures were stable at 26 million in 2018 and 2019, rising to 36 million in 2020. A subsequent decline occurred in 2021 and 2022, dropping to 22 million in 2022, followed by an increase to 33 million in 2023. This pattern reflects moderate growth with some fluctuations.
- Global Products
- Capital expenditures in the Global Products segment experienced notable variability. Starting at 307 million in 2018 and slightly increasing to 310 million in 2019, there was a sharp decline to 191 million in 2020. This was followed by a recovery to 265 million in 2021, then a gradual decrease to 257 million in 2022 and further down to 233 million in 2023. Overall, the segment witnessed a significant drop in 2020 and subsequent partial recovery, with a downward trend in the last two years.
- Total Capital Expenditures
- The aggregate capital expenditures demonstrated a general pattern of fluctuations consistent with individual segment trends. The total rose from 520 million in 2018 to a peak of 548 million in 2019, dropped sharply to 419 million in 2020, recovered to 511 million in 2021, and further increased to 539 million in 2022. However, in 2023, total expenditures declined to 489 million. This overall pattern highlights the impact of the significant 2020 decrease and the partial recovery thereafter, culminating in a slight downturn in the most recent year.