Johnson Controls International PLC (JCI)
Total 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 |
| Total assets | US$ in thousands | 42,242,000 | 42,158,000 | 41,890,000 | 40,815,000 | 42,287,000 |
| Total asset turnover | 0.63 | 0.60 | 0.57 | 0.55 | 0.56 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $26,703,000K ÷ $42,242,000K
= 0.63
The total asset turnover ratio measures a company's efficiency in generating sales revenue relative to its total assets. For Johnson Controls International plc, the total asset turnover has shown a gradual improvement over the past five years, indicating enhanced efficiency in utilizing its assets to drive sales.
In the fiscal year ending September 30, 2019, the total asset turnover stood at 0.57, suggesting that the company generated $0.57 in sales for every dollar invested in total assets. There was a slight decline in the ratio in the following fiscal year to 0.55, indicating a relatively lower level of sales generated per dollar of assets.
However, the subsequent years witnessed an upward trend in total asset turnover. By September 30, 2021, the ratio had increased to 0.57, signifying an improvement in the company's ability to utilize its assets to drive sales. This improvement continued into the following fiscal years, reaching 0.60 by September 30, 2022, and ultimately, 0.63 by September 30, 2023.
The increasing trend in the total asset turnover ratio reflects the company's efforts in optimizing its asset utilization and productivity. It indicates that Johnson Controls International plc has experienced improved sales efficiency in relation to its asset base over the years, which may be attributed to factors such as operational streamlining, better inventory management, or more effective utilization of fixed assets.
Ultimately, the trend in the total asset turnover ratio for Johnson Controls International plc demonstrates the company's success in leveraging its assets to drive sales growth, thereby enhancing its overall operational efficiency and financial performance.
Peer comparison
Sep 30, 2023