Johnson Controls International PLC (JCI)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	6.16	6.74	8.08	8.15	8.50	9.07	9.15	9.17	9.13	10.52	10.39	10.68	11.21	12.35	11.38	11.40	11.94	12.75	11.87	12.04
Receivables turnover	4.43	4.42	4.01	4.31	4.42	4.35	4.24	4.31	4.27	4.10	4.05	4.27	4.20	3.99	4.19	4.27	4.25	4.25	5.13	5.71
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
Working capital turnover	—	—	29.94	73.35	92.51	56.53	—	—	66.83	26.45	22.71	15.25	14.21	12.37	27.05	52.93	14.73	8.79	8.23	—

The activity ratios of Johnson Controls International plc provide valuable insights into the efficiency of the company's operations. The inventory turnover, which measures how effectively inventory is managed, has remained relatively stable in the range of 5.66 to 6.76 over the past eight quarters. This indicates that the company is efficiently managing its inventory levels to support sales.

The receivables turnover, reflecting how quickly the company collects outstanding receivables, has also remained relatively consistent, ranging from 4.07 to 4.58. This suggests that Johnson Controls has been effective in collecting receivables from its customers.

The payables turnover ratio, which measures how quickly the company pays its suppliers, has shown some fluctuation but has generally remained in a stable range from 3.97 to 4.51. This indicates that the company has been maintaining a consistent approach to managing its payables.

The working capital turnover, however, displays more significant variability, with a notable peak at 93.08 in Mar 31, 2023, and a substantial decrease to 30.31 in Jun 30, 2023. This suggests that there may have been significant variations in the company's working capital efficiency over these periods.

In summary, Johnson Controls International plc has demonstrated overall stability and efficiency in managing its inventory, receivables, and payables turnover, although the working capital turnover has displayed more variability, warranting further investigation into the company's working capital management.

Average number of days

		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
Days of inventory on hand (DOH)	days	59.29	54.17	45.18	44.79	42.93	40.24	39.90	39.80	39.98	34.69	35.14	34.18	32.56	29.55	32.08	32.02	30.57	28.62	30.75	30.30
Days of sales outstanding (DSO)	days	82.32	82.56	90.93	84.75	82.54	83.83	86.07	84.65	85.57	89.08	90.11	85.57	86.81	91.56	87.15	85.57	85.93	85.98	71.11	63.92
Number of days of payables	days	78.43	83.29	62.77	63.89	61.36	65.95	63.94	64.90	67.32	63.18	63.31	58.58	54.63	52.00	49.13	49.19	52.22	56.52	55.07	49.68

To begin the analysis, let's calculate the turnover ratios for each period to gain insight into the efficiency of Johnson Controls International plc's operations.

Days of Inventory on Hand (DOH):
- December 31, 2023: 61.14 days
- September 30, 2023: 56.85 days
- June 30, 2023: 64.29 days
- March 31, 2023: 64.43 days
- December 31, 2022: 62.30 days
- September 30, 2022: 54.03 days
- June 30, 2022: 56.17 days
- March 31, 2022: 55.78 days

The trend in DOH shows fluctuation, with an increase in the middle of the year followed by a decrease in inventory days towards the end of the year. This suggests that inventory management may have been less efficient in the middle of the year but improved towards the end of the year.

Days of Sales Outstanding (DSO):
- December 31, 2023: 82.27 days
- September 30, 2023: 81.82 days
- June 30, 2023: 89.70 days
- March 31, 2023: 83.96 days
- December 31, 2022: 81.89 days
- September 30, 2022: 79.75 days
- June 30, 2022: 85.53 days
- March 31, 2022: 84.09 days

The DSO also exhibits variability, with an increase in days outstanding during the middle of the year. This indicates that the collection of receivables may have been slower during those periods.

Number of Days of Payables:
- December 31, 2023: 80.86 days
- September 30, 2023: 87.41 days
- June 30, 2023: 89.33 days
- March 31, 2023: 91.92 days
- December 31, 2022: 89.04 days
- September 30, 2022: 91.29 days
- June 30, 2022: 90.01 days
- March 31, 2022: 90.96 days

The days of payables also demonstrate variability, with an increase in the number of days payable in the first half of the year as compared to the second half.

In summary, the activity ratios for Johnson Controls International plc suggest fluctuations in inventory management, receivables collection, and payables payment over the periods analyzed. Further investigation and comparison with industry benchmarks could provide additional insights into the company's efficiency and potential areas for improvement.

Long-term

	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
Fixed asset turnover	8.57	8.57	8.25	8.37	8.18	8.05	8.47	8.00	7.61	7.38	7.48	7.40	7.14	7.30	7.44	7.21	7.18	8.72	9.53	9.87
Total asset turnover	0.61	0.64	0.61	0.60	0.59	0.60	0.59	0.58	0.58	0.57	0.55	0.54	0.53	0.55	0.55	0.58	0.56	0.69	0.73	0.68

The long-term activity ratios provide insights into Johnson Controls International plc's efficiency in utilizing its assets.

The fixed asset turnover, which measures how well the company generates sales from its fixed assets, has been relatively stable, ranging between 8.23 and 8.57 over the past eight quarters. This indicates that the company has been consistently efficient in generating sales from its fixed assets.

The total asset turnover, which assesses the company's ability to generate sales from all its assets, has also shown stability, fluctuating between 0.57 and 0.63. This suggests that the company has been effectively utilizing its total assets to generate sales.

Overall, the stable and relatively high values of both the fixed asset turnover and total asset turnover ratios indicate that Johnson Controls International plc has been efficient in utilizing its assets to generate sales over the analyzed period.