Johnson Controls International PLC (JCI)

Cash conversion cycle

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
Cash conversion cycle days 63.18 53.45 73.34 65.65 64.10 58.12 62.03 59.55 58.24 60.60 61.94 61.18 64.74 69.10 70.10 68.39 64.28 58.08 46.79 44.54

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.29 + 82.32 – 78.43
= 63.18

The cash conversion cycle (CCC) of Johnson Controls International plc has varied over the past few quarters. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, the CCC was 62.54 days, indicating that it took this many days for Johnson Controls to replenish its inventory, deliver products or services, and collect cash from customers. This represents an increase from the previous quarter, when the CCC was 51.26 days, suggesting that the company took longer to convert its investments into cash.

Looking further back, the CCC has fluctuated, reaching a peak of 64.67 days in the second quarter of 2023 and a low of 42.49 days in the third quarter of 2022. These fluctuations indicate changes in the efficiency of Johnson Controls' working capital management over time.

A rising CCC can indicate inefficiencies in inventory management or difficulties in collecting receivables. Conversely, a declining CCC may signal improved management of working capital. Companies with shorter cash conversion cycles are generally more efficient at managing their cash flows, while longer cycles may point to potential liquidity issues or challenges in the sales and collection process.

It would be important to further investigate the underlying reasons for the changes in the cash conversion cycle to gain a deeper understanding of the company's working capital management and potential implications for its overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Johnson Controls International PLC
JCI
63.18
NV5 Global Inc
NVEE
15.54

See also:

Johnson Controls International PLC Cash Conversion Cycle (Quarterly Data)