Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Johnson Controls International plc, short-term (operating) activity 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).
- Inventory Turnover
- The inventory turnover ratio shows a declining trend over the observed periods, decreasing from 10.11 at the end of 2018 to approximately 6.02 by the first quarter of 2024. This suggests a gradual slowdown in the frequency with which inventory is sold and replaced, indicating possibly slower inventory movement or increasing stock levels relative to cost of goods sold.
- Receivables Turnover
- Receivables turnover exhibits a generally stable pattern, fluctuating between 4.01 and 5.41 without a clear upward or downward trend. The turnover hovered around the low to mid-4 range in recent periods, reflecting steady efficiency in collecting receivables over time.
- Payables Turnover
- Payables turnover has decreased notably from 6.26 in late 2018 to a range near 4.1 to 4.5 in the latest quarters. The decline indicates that the company is taking longer to pay its suppliers, which can be a sign of extended payment terms or cash management strategies aimed at preserving liquidity.
- Working Capital Turnover
- The working capital turnover ratio presents significant volatility with some missing data points. Early values jump sharply from 6.86 to 53.24 and then decline again, reaching about 4.5 to 6 in the most recent observed periods. The large fluctuations suggest uneven utilization or management of working capital resources over time.
- Average Inventory Processing Period
- The average inventory processing period has increased from 36 days at the end of 2018 to approximately 61 days by early 2024. This elongation aligns with the declining inventory turnover, implying a longer duration to convert inventory into sales.
- Average Receivable Collection Period
- The average receivable collection period generally remains stable, ranging mostly between 80 and 91 days in recent quarters, compared to a wider initial range of 67 to 91 days over the entire timeline. This indicates consistent but somewhat extended credit terms or collection timing.
- Operating Cycle
- The operating cycle duration has gradually lengthened, increasing from roughly 103 days in late 2018 to about 152 days by the first quarter of 2024. This trend reflects the combined effect of longer inventory processing and stable receivable collection periods, indicating a slower overall conversion of resources into cash.
- Average Payables Payment Period
- The average payables payment period shows a rising trend until around 2021, reaching over 90 days, before declining slightly to approximately 81 days by early 2024. This suggests some flexibility in payment policies with a recent movement toward quicker payments compared to prior years.
- Cash Conversion Cycle
- The cash conversion cycle experienced fluctuations, generally increasing from 45 days in late 2018 to a peak of 71 days in early 2024. Periods of increase are linked with longer inventory and receivable cycles, partially offset by variations in payables payment periods. The overall increase indicates lengthening timeframes in converting investments back into cash.
Turnover Ratios
Average No. Days
Inventory Turnover
Johnson Controls International plc, inventory turnover 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||
| Inventories | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Inventory Turnover, 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).
1 Q2 2024 Calculation
Inventory turnover
= (Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023
+ Cost of salesQ3 2023)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibited fluctuations over the analyzed periods. Initially, there was an increasing trend from the end of 2018 through mid-2019, peaking around June and September 2019. Subsequently, a decline was observed towards the end of 2019 and the first half of 2020. The latter half of 2020 saw a rebound in cost of sales, with values rising again and remaining relatively elevated through 2021 and early 2022. Afterward, values exhibited volatility but generally maintained a high level, reaching peaks around mid-2023 before experiencing some reduction by the first quarter of 2024.
- Inventories
- Inventory levels showed a generally upward trajectory throughout the period under review. Starting modestly at the end of 2018, inventories increased intermittently with some reductions seen in late 2019 and mid-2020. From late 2020 onward, a clear rising pattern emerged, with inventories reaching their highest points in 2022 and mid-2023. Although there was a slight decline towards the last quarter of 2023 and early 2024, inventory levels remained substantially above those at the beginning of the period.
- Inventory Turnover Ratio
- The inventory turnover ratio demonstrated a consistent declining trend over the entire timeframe. The ratio started at a high level near 10.11 at the end of 2018, indicating faster inventory movement relative to sales. This ratio steadily decreased over the years, dropping below 7 by the end of 2021 and continuing downward to levels around 6 or slightly below by early 2024. This decline in the turnover ratio suggests that inventory was moving more slowly relative to cost of sales, potentially pointing to increasing inventory holding periods or slower sales velocity through the periods analyzed.
- Summary and Insights
- Overall, the data reveals a scenario where cost of sales is somewhat volatile but generally stable at higher levels in recent years, while inventory balances have grown significantly. This combination, along with the decreasing inventory turnover ratio, indicates that the company has been holding more inventory relative to its sales or cost consumption rates, which may have implications for working capital management and operational efficiency. The extended buildup of inventory coupled with slower turnover could suggest challenges in demand forecasting or supply chain adjustments. This pattern warrants further examination to identify underlying causes and potential risks related to inventory obsolescence or cash flow impacts.
Receivables Turnover
Johnson Controls International plc, receivables turnover 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Accounts receivable, less allowance for expected credit losses | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, 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).
1 Q2 2024 Calculation
Receivables turnover
= (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
÷ Accounts receivable, less allowance for expected credit losses
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures exhibit a fluctuating trend over the observed periods. Starting at approximately $5.46 billion at the end of 2018, net sales increased to a peak around mid-2019, reaching about $6.45 billion. Subsequently, there was a decline towards the end of 2019 and early 2020, coinciding perhaps with external market conditions. From mid-2020 onwards, net sales showed a recovery trend, with some volatility, peaking again at around $7.13 billion in mid-2023 before declining towards early 2024. Overall, the data indicates periods of growth interrupted by downturns, suggesting sensitivity to economic cycles or other sector-specific factors.
- Accounts Receivable (less allowance for expected credit losses)
- The accounts receivable balances closely mirror the fluctuations observed in net sales. Beginning at $5.44 billion at the end of 2018, the balances generally increase along with sales, peaking in mid-2019, followed by a period of slight decline into mid-2020. Thereafter, the balances demonstrate some variability but show a gradual upward trend, reaching approximately $6.69 billion by early 2024. This pattern suggests that the company is consistently generating receivables proportional to its sales, but the increase in receivables towards the latter periods might raise considerations regarding collection efficiency or credit policies.
- Receivables Turnover Ratio
- The receivables turnover ratio, which measures how efficiently the company collects its receivables, shows a declining trend from 5.41 at the end of 2018 to around 4.15 by late 2019. This decline indicates a reduction in collection efficiency during that period. From 2020 onwards, the ratio fluctuates between approximately 4.0 and 4.6, reflecting some variability in collection performance. Notably, the turnover ratio decreases again towards early 2024, reaching about 4.01, suggesting a potential slowdown in receivables collections relative to sales. The lower turnover ratios observed in recent periods could be a point of focus for liquidity and working capital management.
- Summary of Financial Trends
- Collectively, the data reveal correlations between sales and accounts receivable levels, with both experiencing similar cycles of growth and contraction over the examined timeframe. The receivables turnover ratio indicates periods of less efficient collections, particularly notable around late 2019 and early 2024. The increasing accounts receivable balance combined with a lower turnover ratio towards the end of the period may imply extended collection periods, which could affect cash flow. Monitoring these trends is recommended to ensure effective working capital management and to anticipate any liquidity strains.
Payables Turnover
Johnson Controls International plc, payables turnover 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, 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).
1 Q2 2024 Calculation
Payables turnover
= (Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023
+ Cost of salesQ3 2023)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales exhibited fluctuations over the observed periods. Initially, there was a rising trend from December 2018, peaking around June and September 2019, followed by a decline toward the end of 2019 and early 2020. A notable increase occurred again in mid to late 2020 and into 2021. The values plateaued somewhat with minor variations during 2021 and early 2022, then surged again in mid-2022 and early 2023. The final periods indicate a decrease in late 2023 compared to mid-2023 levels, suggesting some volatility but no clear sustained upward or downward trend over the entire period.
- Accounts Payable
- Accounts payable showed a generally increasing pattern from December 2018 through 2021, with a few periods of relative stabilization. Starting from approximately 3,273 million, accounts payable rose steadily, peaking around late 2021 and early 2022 at over 4,100 million. From mid-2022 onwards, the value remained relatively stable with minor fluctuations around the 4,000 million mark, ending slightly lower in early 2024. This suggests a growth in obligations to creditors during the earlier periods, stabilizing in recent quarters.
- Payables Turnover Ratio
- The payables turnover ratio declined substantially from 6.26 in December 2018 to around 4.5 in late 2019, indicating slower payment to suppliers or an increase in accounts payable relative to cost of sales. The ratio continued to decline gradually through 2020 and 2021, reaching its lowest values around late 2021 to early 2022, approximately 3.9 to 4.0. Thereafter, the ratio stabilized with minor fluctuations, and showed a modest increase toward the end of 2023 and early 2024, closing around 4.48. Overall, the declining trend in payables turnover suggests elongation in the payment cycle, which slightly reversed in the most recent periods.
Working Capital Turnover
Johnson Controls International plc, working capital turnover 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, 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).
1 Q2 2024 Calculation
Working capital turnover
= (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital values exhibit substantial volatility across the reported periods. Initial figures show moderate positive values, including a peak of 3800 million USD by June 2019, followed by a general decline, dipping into negative territory at multiple points, notably March 2019 and the last two quarters ending March 2024. The later periods indicate marked negative values reaching as low as -1722 million USD by March 2024, suggesting potential liquidity strains or changes in current asset and liability management.
- Net Sales
- Net sales demonstrate a broadly stable to slightly upward trending pattern over the quarters. Starting from 5464 million USD at the end of 2018, sales experience normal fluctuations but maintain a general growth trajectory with peaks above 7000 million USD by late 2023. The data reflects resilient sales performance despite periods of economic uncertainty, with consistent sales above 5000 million USD throughout.
- Working Capital Turnover
- The working capital turnover ratio shows significant fluctuation and gaps in reporting. Early figures, including a notably high 97.45 ratio at the end of 2018, drop sharply in subsequent comparable periods. Mid-range values vary widely, reflecting unstable efficiency in utilizing working capital to generate sales. Higher ratios in certain quarters, such as a peak of 93.08, suggest periods of improved operational efficiency, but overall inconsistency likely corresponds to the volatile working capital figures. Missing data in some recent periods limit a complete trend analysis.
- Summary
- Overall, the data reveals an unstable working capital position accompanied by a relatively steady net sales performance. Fluctuations in working capital and its turnover ratio indicate potential challenges in short-term liquidity management and operational efficiency, contrasted by generally robust sales figures. The negative values of working capital in recent quarters are notable and may warrant closer examination of current assets and liabilities, whereas the maintained sales suggest continued market demand resilience.
Average Inventory Processing Period
Johnson Controls International plc, average inventory processing period 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Inventory Processing Period, 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).
1 Q2 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits a gradual downward trend over the entire period analyzed. Starting at 10.11 at the end of 2018, the ratio declines overall, with some fluctuations, reaching levels around 6.00 by early 2024. This indicates a reduction in the frequency with which inventory is sold and replaced during the year, suggesting slower movement of stock or possibly increased inventory levels relative to sales.
- Average Inventory Processing Period
- The average inventory processing period, expressed in days, shows an increasing trend, moving from 36 days in late 2018 to over 60 days by early 2024. This implies that the company is holding inventory for longer durations before it is sold or turned over. The days inventory outstanding roughly correlates inversely with the inventory turnover ratio, confirming a lengthening turnover cycle over time.
- Overall Insights
- The combination of declining inventory turnover and increasing inventory processing periods suggests a slowdown in inventory movement. This could be indicative of challenges in sales velocity, changes in demand, or shifts in inventory management strategies. The steady increase in days inventory held may raise concerns about inventory obsolescence risk and tie-up of capital in stock. Monitoring and addressing these trends is advisable to improve operational efficiency and working capital management.
Average Receivable Collection Period
Johnson Controls International plc, average receivable collection period 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Receivable Collection Period, 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).
1 Q2 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio demonstrates a generally declining trend from December 2018 through September 2019, decreasing from 5.41 to 4.15. Following this period, the ratio stabilizes and fluctuates within a narrower range around 4.2 to 4.3 until early 2022. From March 2022 onward, there is some volatility, with values oscillating between approximately 4.0 and 4.6, ending at 4.01 in March 2024. This indicates a slight weakening in the frequency of receivables collection over time, with periodic variations.
- Average Receivable Collection Period
- The average collection period, which inversely correlates with the receivables turnover ratio, exhibits an increasing trend from 67 days in December 2018 to a peak of 88 days in September 2019. Subsequently, the collection period remains relatively stable, fluctuating in the mid-80s range until early 2022. From 2022 onwards, some fluctuations are observed, including a low of 80 days in September 2022 and a higher value of 91 days in March 2024. This pattern suggests that the time taken to convert receivables into cash has generally lengthened compared to the starting period, with variability in recent quarters.
- Overall Interpretation
- The analysis of the two metrics reveals a general trend of slower receivables collection over the observed timeframe. Initially, the company experienced more efficient turnover with a lower average collection period, but over time, the collection period has extended, and the turnover ratio has decreased slightly. The fluctuations in recent quarters may indicate changes in credit policy, customer payment behavior, or external economic factors impacting cash collection efficiency. Continuous monitoring is advisable to understand underlying causes and to manage working capital effectively.
Operating Cycle
Johnson Controls International plc, operating cycle calculation (quarterly data)
No. days
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Cycle, 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).
1 Q2 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows a general increasing trend over the analyzed timeline. Starting at 36 days at the end of 2018, the period gradually rises, peaking at 64 days during mid-2023. There are minor fluctuations, such as a decrease to 43 days in the third quarter of 2020, but the overall trajectory indicates a lengthening duration for inventory processing. This suggests the company is taking more time to manage or turnover its inventory in recent periods compared to earlier years.
- Average Receivable Collection Period
- The receivable collection period also reflects some variability with a tendency to remain around mid-80s to low 90s days. It increased from 67 days at the end of 2018 to a high near 90 days in the third quarter of 2023. The period exhibits some oscillations without a consistent upward or downward long-term trend, indicating relative stability in how the company collects receivables over time, with occasional fluctuations possibly impacted by external economic or operational factors.
- Operating Cycle
- The operating cycle, which combines inventory processing and receivable collection periods, exhibits a clear upward trend, beginning at 103 days at the end of 2018 and reaching around 152 days by the first quarter of 2024. This progressive increase indicates that the overall time taken from inventory purchase to cash collection has lengthened significantly. The increase is driven largely by both the extension in inventory processing and variations in receivable collection. This lengthening cycle may imply potential challenges in asset turnover efficiency or changes in working capital management policies.
Average Payables Payment Period
Johnson Controls International plc, average payables payment period 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, 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).
1 Q2 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio shows a clear declining trend from December 2018 through early 2024. Initially, the ratio was at 6.26 in December 2018, indicating a higher frequency of payment cycles within the period. It then steadily decreased, reaching a low around the 3.9 to 4.0 range between late 2021 and 2023. Towards the end of the period, there is a slight recovery observed, with the ratio rising to approximately 4.5 by the first quarter of 2024. This downward trend suggests slower payment processing over time, with some recent improvement in payment velocity.
- Average Payables Payment Period
- The average payables payment period, expressed in days, exhibits an inverse relationship compared to the payables turnover ratio. Starting at 58 days in December 2018, the period lengthened progressively, peaking near 93 days around the end of 2021. This reflects an increasing duration before settling obligations to suppliers. After reaching this peak, the payment period stabilizes with slight fluctuations but generally maintains an elevated level close to 90 days. In the most recent quarters, a modest decrease is detected, dropping to around 81 days by March 2024, indicating a trend toward somewhat faster payments relative to the prior high levels.
- Insight Summary
- The data points to a persistent extension in the time taken to pay suppliers during the multi-year period analyzed, as evidenced by a reduced payables turnover and an increased payment period. This could be indicative of strategic cash flow management to optimize working capital or potential challenges in liquidity and operational efficiency. The minor reversal in trends toward the end suggests an adjustment or improvement in payment practices. Monitoring these metrics will be important to assess the company’s financial health and supplier relations going forward.
Cash Conversion Cycle
Johnson Controls International plc, cash conversion cycle calculation (quarterly data)
No. days
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Conversion Cycle, 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).
1 Q2 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibits an overall increasing trend across the reported quarters, rising from 36 days at the end of 2018 to a peak of 64 days in mid-2023. Although some fluctuations are present, such as a brief decline from 48 to 43 days in late 2020, the general pattern indicates slower inventory turnover over time. The most notable increase occurs from early 2021, where the period extends from 48 days up to 64 days by mid-2023 before slightly decreasing to 61 days by early 2024.
- Average Receivable Collection Period
- This period shows variability throughout the timeframe without a clear upward or downward linear trend. Beginning at 67 days at the end of 2018, it rises to a high of 91 days by early 2024. Several fluctuations are evident, such as a drop from 87 days in late 2021 to 80 days in early 2022, followed by incremental increases reaching 91 days again by early 2024. This suggests some inconsistency in the speed at which receivables are collected, with an overall slight tendency toward longer collection times.
- Average Payables Payment Period
- The average payables payment period generally increases from 58 days in late 2018 to a peak of 93 days at the end of 2021, indicating that the company is taking longer to settle its payables over this period. After peaking, this period slightly declines to stabilize around 81 days by early 2024. This suggests an initial strategy to extend payment terms or delay payments, followed by adjustments to more moderate durations in recent quarters.
- Cash Conversion Cycle (CCC)
- The cash conversion cycle shows fluctuations but maintains a range between 43 and 71 days across the period. It starts at 45 days at the end of 2018 and reaches a peak of 71 days in late 2023, indicating an overall lengthening time for converting investments in inventory and other resources into cash inflows. Notably, the CCC decreases sharply to 43 days at the end of 2021, coinciding with changes in inventory and receivables metrics, before rising again. This pattern reflects variability in working capital efficiency with periods of improvement and deterioration.