Johnson Controls International PLC (JCI)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 18,504,000 | 18,704,000 | 24,982,000 | 24,840,000 | 24,613,000 | 24,174,000 | 23,549,000 | 23,065,000 | 22,138,000 | 21,642,000 | 21,441,000 | 21,291,000 | 21,448,000 | 21,898,000 | 22,711,000 | 23,142,000 | 23,318,000 | 23,131,000 | 24,330,000 | 25,582,000 |
| Payables | US$ in thousands | 3,976,000 | 4,268,000 | 4,296,000 | 4,348,000 | 4,138,000 | 4,368,000 | 4,125,000 | 4,101,000 | 4,083,000 | 3,746,000 | 3,719,000 | 3,417,000 | 3,210,000 | 3,120,000 | 3,057,000 | 3,119,000 | 3,336,000 | 3,582,000 | 3,671,000 | 3,482,000 |
| Payables turnover | 4.65 | 4.38 | 5.82 | 5.71 | 5.95 | 5.53 | 5.71 | 5.62 | 5.42 | 5.78 | 5.77 | 6.23 | 6.68 | 7.02 | 7.43 | 7.42 | 6.99 | 6.46 | 6.63 | 7.35 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,504,000K ÷ $3,976,000K
= 4.65
The payables turnover ratio for Johnson Controls International plc has shown a consistent trend over the past eight quarters, ranging from 3.97 to 4.51. This ratio indicates the company's efficiency in managing its trade payables and reflects how many times during a period the company pays off its suppliers.
The increasing trend in the payables turnover ratio over the past two quarters suggests that Johnson Controls International plc has been effectively managing its accounts payable and has been able to settle its obligations to suppliers at a faster rate. This may indicate good working capital management and potentially improved supplier relationships.
Overall, the gradually increasing payables turnover ratio indicates that Johnson Controls International plc has been effective in managing its trade payables and has demonstrated the ability to efficiently utilize its working capital. However, it would be beneficial to compare this ratio with industry benchmarks to gain a better understanding of the company's performance in managing its payables.
Peer comparison
Dec 31, 2023
See also:
Johnson Controls International PLC Payables Turnover (Quarterly Data)