Johnson Controls International PLC (JCI)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,703,000 | 25,213,000 | 23,883,000 | 22,321,000 | 23,777,000 |
| Property, plant and equipment | US$ in thousands | 3,136,000 | 3,131,000 | 3,228,000 | 3,059,000 | 3,348,000 |
| Fixed asset turnover | 8.51 | 8.05 | 7.40 | 7.30 | 7.10 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $26,703,000K ÷ $3,136,000K
= 8.51
The fixed asset turnover ratio measures the efficiency of a company in generating sales from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.
Looking at the data for Johnson Controls International plc over the past five years, we observe a generally positive trend in the fixed asset turnover ratio. The ratio has been consistently increasing from 7.16 in 2019 to 8.54 in 2023. This suggests that the company has been improving its ability to generate sales from its fixed assets over this period.
A higher fixed asset turnover ratio implies that the company is effectively using its fixed assets to drive sales, which can be indicative of operational efficiency and effective asset management. It suggests that the company is able to produce more revenue from a given level of investment in fixed assets.
This trend may be a result of various factors, such as improved production processes, better asset utilization, or strategic investments in high-return assets. It indicates that Johnson Controls International plc has been successful in optimizing its fixed asset base to drive higher sales and, ultimately, better financial performance.
Overall, the trend in Johnson Controls International plc's fixed asset turnover ratio indicates a positive and improving efficiency in utilizing its fixed assets to generate sales over the past five years.
Peer comparison
Sep 30, 2023