Johnson Controls International PLC (JCI)

Cash ratio

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Cash and cash equivalents US$ in thousands 606,000 828,000 2,031,000 1,336,000 1,951,000
Short-term investments US$ in thousands 7,000 1,066,000
Total current liabilities US$ in thousands 11,955,000 11,084,000 11,239,000 9,098,000 8,248,000
Cash ratio 0.05 0.08 0.18 0.26 0.24

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($606,000K + $—K) ÷ $11,955,000K
= 0.05

The cash ratio of Johnson Controls International PLC has shown a declining trend over the past five years, decreasing from 0.24 in 2020 to 0.05 in 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A lower cash ratio indicates that the company has less liquid assets available to meet its short-term obligations.

The decreasing trend in the cash ratio may raise concerns about the company's liquidity position, as it suggests a potential inability to quickly pay off its current liabilities using its available cash resources. This could indicate a higher reliance on other forms of short-term financing or a less efficient management of cash resources.

It is important for stakeholders to monitor the company's cash management practices and liquidity position closely, as a low cash ratio may indicate a need for improved cash flow management or strategic adjustments to ensure the company's financial health in the future.


Peer comparison

Sep 30, 2024

Company name
Symbol
Cash ratio
Johnson Controls International PLC
JCI
0.05
NV5 Global Inc
NVEE
0.28

See also:

Johnson Controls International PLC Cash Ratio