Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Johnson Controls International plc, short-term (operating) activity ratios
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Johnson Controls International plc inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Johnson Controls International plc receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Johnson Controls International plc payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Johnson Controls International plc number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Johnson Controls International plc number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Johnson Controls International plc operating cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Johnson Controls International plc number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Johnson Controls International plc cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Inventory Turnover
Johnson Controls International plc, inventory turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 17,822) | 16,956) | 15,609) | 14,906) | 16,275) | 22,020) | |
| Inventories | 2,776) | 2,510) | 2,057) | 1,773) | 1,814) | 3,224) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 6.42 | 6.76 | 7.59 | 8.41 | 8.97 | 6.83 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Boeing Co. | 0.88 | 0.81 | 0.75 | 0.78 | 0.94 | — | |
| Caterpillar Inc. | 2.58 | 2.54 | 2.53 | 2.55 | 3.25 | — | |
| Eaton Corp. plc | 3.95 | 4.04 | 4.48 | 5.88 | 5.11 | — | |
| GE Aerospace | 3.05 | 3.19 | 3.40 | 3.80 | 4.74 | — | |
| Honeywell International Inc. | 3.72 | 4.04 | 4.29 | 4.94 | 5.51 | — | |
| Lockheed Martin Corp. | 18.87 | 18.68 | 19.45 | 16.01 | 14.22 | — | |
| RTX Corp. | 4.83 | 5.03 | 5.65 | 5.11 | 5.21 | — | |
| Inventory Turnover, Sector | |||||||
| Capital Goods | 2.30 | 2.28 | 2.28 | 2.28 | 2.61 | — | |
| Inventory Turnover, Industry | |||||||
| Industrials | 3.89 | 3.99 | 3.87 | 3.61 | 3.94 | — | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 17,822 ÷ 2,776 = 6.42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Johnson Controls International plc inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Johnson Controls International plc, receivables turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 26,793) | 25,299) | 23,668) | 22,317) | 23,968) | 31,400) | |
| Accounts receivable, less allowance for expected credit losses | 6,006) | 5,528) | 5,613) | 5,294) | 5,770) | 7,065) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 4.46 | 4.58 | 4.22 | 4.22 | 4.15 | 4.44 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Boeing Co. | 29.37 | 26.46 | 23.58 | 29.75 | 23.44 | — | |
| Caterpillar Inc. | 6.86 | 6.39 | 5.68 | 5.33 | 5.92 | — | |
| Eaton Corp. plc | 5.18 | 5.09 | 5.95 | 6.15 | 6.22 | — | |
| GE Aerospace | 4.17 | 4.09 | 4.55 | 4.37 | 5.22 | — | |
| Honeywell International Inc. | 4.87 | 4.77 | 5.04 | 4.78 | 4.90 | — | |
| Lockheed Martin Corp. | 31.69 | 26.34 | 34.15 | 33.06 | 25.59 | — | |
| RTX Corp. | 6.36 | 7.36 | 6.66 | 6.11 | 5.70 | — | |
| Receivables Turnover, Sector | |||||||
| Capital Goods | 7.68 | 7.36 | 7.57 | 7.30 | 7.40 | — | |
| Receivables Turnover, Industry | |||||||
| Industrials | 8.14 | 7.80 | 7.60 | 7.49 | 7.67 | — | |
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
Receivables turnover = Net sales ÷ Accounts receivable, less allowance for expected credit losses
= 26,793 ÷ 6,006 = 4.46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Johnson Controls International plc receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Payables Turnover
Johnson Controls International plc, payables turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 17,822) | 16,956) | 15,609) | 14,906) | 16,275) | 22,020) | |
| Accounts payable | 4,268) | 4,241) | 3,746) | 3,120) | 3,582) | 4,644) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 4.18 | 4.00 | 4.17 | 4.78 | 4.54 | 4.74 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Boeing Co. | 5.86 | 6.18 | 6.40 | 4.94 | 4.63 | — | |
| Caterpillar Inc. | 5.41 | 4.76 | 4.36 | 4.75 | 6.15 | — | |
| Eaton Corp. plc | 4.39 | 4.51 | 4.75 | 6.24 | 6.78 | — | |
| GE Aerospace | 3.27 | 2.98 | 3.32 | 3.67 | 4.20 | — | |
| Honeywell International Inc. | 3.36 | 3.53 | 3.40 | 3.86 | 4.25 | — | |
| Lockheed Martin Corp. | 25.56 | 27.25 | 74.34 | 64.48 | 40.16 | — | |
| RTX Corp. | 5.31 | 5.40 | 5.93 | 5.56 | 5.28 | — | |
| Payables Turnover, Sector | |||||||
| Capital Goods | 5.42 | 5.21 | 5.60 | 5.54 | 5.63 | — | |
| Payables Turnover, Industry | |||||||
| Industrials | 7.74 | 7.58 | 7.74 | 7.44 | 7.40 | — | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 17,822 ÷ 4,268 = 4.18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Johnson Controls International plc payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
Johnson Controls International plc, working capital turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 10,737) | 11,685) | 9,998) | 10,053) | 12,393) | 11,823) | |
| Less: Current liabilities | 11,084) | 11,239) | 9,098) | 8,248) | 9,070) | 11,250) | |
| Working capital | (347) | 446) | 900) | 1,805) | 3,323) | 573) | |
| Net sales | 26,793) | 25,299) | 23,668) | 22,317) | 23,968) | 31,400) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | 56.72 | 26.30 | 12.36 | 7.21 | 54.80 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Boeing Co. | 5.78 | 3.42 | 2.34 | 1.69 | 15.57 | — | |
| Caterpillar Inc. | 5.23 | 4.62 | 3.54 | 2.84 | 4.04 | — | |
| Eaton Corp. plc | 5.91 | 8.70 | 65.65 | 5.42 | 5.95 | — | |
| GE Aerospace | 7.24 | 7.93 | 4.94 | 2.26 | 7.03 | — | |
| Honeywell International Inc. | 7.39 | 7.03 | 5.86 | 3.64 | 5.92 | — | |
| Lockheed Martin Corp. | 18.85 | 12.93 | 11.52 | 12.01 | 19.15 | — | |
| RTX Corp. | 41.62 | 20.15 | 9.75 | 7.52 | 26.47 | — | |
| Working Capital Turnover, Sector | |||||||
| Capital Goods | 8.26 | 6.79 | 5.01 | 3.24 | 8.95 | — | |
| Working Capital Turnover, Industry | |||||||
| Industrials | 11.44 | 9.67 | 6.90 | 4.47 | 10.00 | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 26,793 ÷ -347 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Johnson Controls International plc, average inventory processing period calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 6.42 | 6.76 | 7.59 | 8.41 | 8.97 | 6.83 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 57 | 54 | 48 | 43 | 41 | 53 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Boeing Co. | 415 | 452 | 486 | 467 | 388 | — | |
| Caterpillar Inc. | 141 | 144 | 144 | 143 | 112 | — | |
| Eaton Corp. plc | 92 | 90 | 82 | 62 | 71 | — | |
| GE Aerospace | 120 | 114 | 107 | 96 | 77 | — | |
| Honeywell International Inc. | 98 | 90 | 85 | 74 | 66 | — | |
| Lockheed Martin Corp. | 19 | 20 | 19 | 23 | 26 | — | |
| RTX Corp. | 76 | 73 | 65 | 71 | 70 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Capital Goods | 159 | 160 | 160 | 160 | 140 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Industrials | 94 | 91 | 94 | 101 | 93 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.42 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Johnson Controls International plc number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Johnson Controls International plc, average receivable collection period calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 4.46 | 4.58 | 4.22 | 4.22 | 4.15 | 4.44 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 82 | 80 | 87 | 87 | 88 | 82 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Boeing Co. | 12 | 14 | 15 | 12 | 16 | — | |
| Caterpillar Inc. | 53 | 57 | 64 | 68 | 62 | — | |
| Eaton Corp. plc | 70 | 72 | 61 | 59 | 59 | — | |
| GE Aerospace | 87 | 89 | 80 | 83 | 70 | — | |
| Honeywell International Inc. | 75 | 77 | 72 | 76 | 75 | — | |
| Lockheed Martin Corp. | 12 | 14 | 11 | 11 | 14 | — | |
| RTX Corp. | 57 | 50 | 55 | 60 | 64 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Capital Goods | 48 | 50 | 48 | 50 | 49 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Industrials | 45 | 47 | 48 | 49 | 48 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.46 = 82
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Johnson Controls International plc number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Operating Cycle
Johnson Controls International plc, operating cycle calculation, comparison to benchmarks
No. days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 57 | 54 | 48 | 43 | 41 | 53 | |
| Average receivable collection period | 82 | 80 | 87 | 87 | 88 | 82 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 139 | 134 | 135 | 130 | 129 | 135 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Boeing Co. | 427 | 466 | 501 | 479 | 404 | — | |
| Caterpillar Inc. | 194 | 201 | 208 | 211 | 174 | — | |
| Eaton Corp. plc | 162 | 162 | 143 | 121 | 130 | — | |
| GE Aerospace | 207 | 203 | 187 | 179 | 147 | — | |
| Honeywell International Inc. | 173 | 167 | 157 | 150 | 141 | — | |
| Lockheed Martin Corp. | 31 | 34 | 30 | 34 | 40 | — | |
| RTX Corp. | 133 | 123 | 120 | 131 | 134 | — | |
| Operating Cycle, Sector | |||||||
| Capital Goods | 207 | 210 | 208 | 210 | 189 | — | |
| Operating Cycle, Industry | |||||||
| Industrials | 139 | 138 | 142 | 150 | 141 | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 57 + 82 = 139
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Johnson Controls International plc operating cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Payables Payment Period
Johnson Controls International plc, average payables payment period calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 4.18 | 4.00 | 4.17 | 4.78 | 4.54 | 4.74 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 87 | 91 | 88 | 76 | 80 | 77 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Boeing Co. | 62 | 59 | 57 | 74 | 79 | — | |
| Caterpillar Inc. | 67 | 77 | 84 | 77 | 59 | — | |
| Eaton Corp. plc | 83 | 81 | 77 | 58 | 54 | — | |
| GE Aerospace | 112 | 123 | 110 | 100 | 87 | — | |
| Honeywell International Inc. | 109 | 103 | 107 | 95 | 86 | — | |
| Lockheed Martin Corp. | 14 | 13 | 5 | 6 | 9 | — | |
| RTX Corp. | 69 | 68 | 62 | 66 | 69 | — | |
| Average Payables Payment Period, Sector | |||||||
| Capital Goods | 67 | 70 | 65 | 66 | 65 | — | |
| Average Payables Payment Period, Industry | |||||||
| Industrials | 47 | 48 | 47 | 49 | 49 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.18 = 87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Johnson Controls International plc number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Cash Conversion Cycle
Johnson Controls International plc, cash conversion cycle calculation, comparison to benchmarks
No. days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 57 | 54 | 48 | 43 | 41 | 53 | |
| Average receivable collection period | 82 | 80 | 87 | 87 | 88 | 82 | |
| Average payables payment period | 87 | 91 | 88 | 76 | 80 | 77 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 52 | 43 | 47 | 54 | 49 | 58 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Boeing Co. | 365 | 407 | 444 | 405 | 325 | — | |
| Caterpillar Inc. | 127 | 124 | 124 | 134 | 115 | — | |
| Eaton Corp. plc | 79 | 81 | 66 | 63 | 76 | — | |
| GE Aerospace | 95 | 80 | 77 | 79 | 60 | — | |
| Honeywell International Inc. | 64 | 64 | 50 | 55 | 55 | — | |
| Lockheed Martin Corp. | 17 | 21 | 25 | 28 | 31 | — | |
| RTX Corp. | 64 | 55 | 58 | 65 | 65 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Capital Goods | 140 | 140 | 143 | 144 | 124 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Industrials | 92 | 90 | 95 | 101 | 92 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 57 + 82 – 87 = 52
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Johnson Controls International plc cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |